The research reveals a wide range of different approaches and market drivers. The mobile market globally is becoming more fragmented with the power of brands and distribution –together with the emergence of new low-cost MVNE aggregators – favouring the development of emerging niche MVNOs based on a small social community. The report features case studies based on in-depth interviews with BT, Lebara, Virgin Mobile and Blyk, each using a different business model.
Retailers and non-telecoms companies with strong customer relationships are using the MVNO model as a marketing tool to broaden and improve their existing customer experience to improve customer retention for their core business.
The distinction between pure MVNO and pure MNO is likely to become increasingly difficult to sustain as the MNO is utilising the MVNO technique of sub-brands or multi-brands to retain loyal customers… As the larger MVNOs grow their subscriber base they also seek to develop a post-paid business stream and are adopting the characteristics of the MNO.
The report also identifies six broad criteria that determine the most attractive MVNO markets for future investment across 30 countries.
The MVNO model is perceived as a perfect low cost entry vehicle to launch new mobile business models.
commented Margrit Sessions, Managing Director of BroadGroup Tariff Services.
MVNOs can help lower prices in a market but purely competing on price can not be sustained as a long-term strategy. Developing new business models and distribution will be key to success. To compete in a market purely on price is not a winning strategy.