Global Wireless Telecommunication Services Industry 2012-2017: Trends, Profits and Forecast Analysis
- Language: English
- Published: February 2012
- Region: Global
Thanks to the proliferation of 3G+ networks and the boom in data-based applications and services, those MVNOs venturing beyond the traditional provision of discount voice and SMS are finding great success, which in turn leads to further specialization, according to a new report.
MVNO Strategies Beyond the Traditional Ethnic and Discount Models analyzes successful MVNOs in developed markets and will attempt to draw lessons for emerging markets. Pyramid Research will look at what type of MVNOs were successful in developed markets such as the U.K., the birthplace of such giants as Virgin Mobile, Lebara Mobile, Tesco Mobile and LycaMobile, and where MVNOs account for 17 percent of total SIMs. Pyramid will look at different breeds of MVNO, starting with so-called ethnic MVNOs, and take a look at the market potential of such services. Then Pyramid will analyze fixed operators’ strategies to become fully fledged multiplay operators through MVNO strategies and describe the emerging and exciting trend of data-only MVNOs.
“When looking at the MVNOs from the value perspective, telecom-based MVNOs targeting the mass market face a prospect of limited financial returns,” says Pyramid Research Senior Analyst, Sylwia Boguszewska. “Their chance of success increases when they find customer niches, such as business customers or M2M; successful MVNOs share a number of characteristics including targeting a clear and well-defined segment, focusing on what they do best and having a hard differentiator that the competition cannot easily replicate,” she adds. SHOW LESS READ MORE >
CHARACTERISTICS OF SUCCESSFUL MVNOS
A. MVNOs are a very good fit for large ethnic diasporas, and this niche will continue to be an important market in years to come
B. MVNOs will be a major vehicle to complement operator offerings in some markets
C. Verticals and external business will increasingly leverage MVNOs to offer mobile services to their clients and leverage existing relationships; a number of innovative verticals will use and benefit from MVNOs such as M2M
CASE STUDY: Ethnic MVNO — Lycamobile UK
CASE STUDY: Business MVNO — KORE Telematics, North America
CASE STUDY: Retail/Discount MVNO — Tesco Mobile UK
CASE STUDY: Data-only MVNO — giffgaff UK
CASE STUDY: Brand MVNO — Virgin Mobile France
Table of exhibits
Exhibit 1: MVNO subscribers as percentage of regional subscribers, 2008-2016
Exhibit 2: MVNO market share in select developed markets, 2011E
Exhibit 3: The MVNO value matrix
Exhibit 4: Virgin Mobile Chile advertising campaign
Exhibit 5: A map of the risks of the MVNO model
Exhibit 6: Top 20 emigration and immigration countries, 2010
Exhibit 7: TracFone’s Spanish offering
Exhibit 8: Top 20 remittance-receiving countries and sending countries, 2009
Exhibit 9: Lebara Mobile Nokia handsets, 2012
Exhibit 10: Multiplay and quad-play penetration of households in a number of Western European and Latin American markets, 2011 and 2016
Exhibit 11: Fixed mobile convergence households penetration in select European countries, 2011 and 2016
Exhibit 12: Virgin Media churn and cross-selling opportunity, 2011
Exhibit 13: Amazon Kindle Keyboard 3G wireless coverage map (3G or 2.5G (EDGE/GPRS)
Exhibit 14: Lycamobile subscriptions and share of total MVNO market, 2006-2011
Exhibit 15: Lycamoney offer, 2012
Exhibit 16: KORE Telematics services portfolio, 2012
Exhibit 17: Tesco Mobile sample of retail offering, 2012
Exhibit 18: Giffgaff data plans, 2012
Exhibit 19: Virgin Mobile France subscriptions and percentage of total market subscriptions, 2007-2011
Exhibit 20: Virgin Mobile Extaz offering, 2012
Outside of North America and Western Europe, MVNOs have had a limited appeal due to poor regulatory frameworks and established operators·strategies for addressing niche markets. To date, MVNOs have generally emerged in competitive, mature market environments, where more and more MNOs have embraced the model as an additional revenue stream.
We believe that MVNOs will keep carving out additional niches to address, going beyond the traditional ethnic and discount models. As mobile operators focus on migrating their customers to postpaid and try to offset declining voice revenue with attractive data-based offerings, they simply cannot address all the possible niches. MVNOs, thanks to their strong focus on a specific target groups and ability to develop innovative and fresh services, will be able to find a sweet spot in the market.
This report analyzes successful MVNOs in developed markets and will attempt to draw lessons for emerging markets. We will look at what type of MVNOs were successful in developed markets such as the UK, the birthplace of such giants as Virgin Mobile, Lebara Mobile, Tesco Mobile and LycaMobile and where MVNOs account for 17% of total SIMs. We will look at different breeds of MVNO, starting with so-called ethnic MVNOs, and we will take a look at the market potential of such services. Then we will analyze fixed operators·strategies to become fully fledged multiplay operators through MVNO strategies, and finally we will describe the emerging and exciting trend of data-only MVNOs.
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- KORE Telematics
- Lebara Mobile
- Maroc Telecom
- Tesco Mobile
- Virgin Mobile