Mobile phone
MVNO subscriptions are expected to reach 150 million by 2013

Mobile virtual network operators ring the changes

Sector remains 'robust', says Informa

Written by Robert Jaques

Subscriptions to mobile virtual network operator (MVNO) services will reach 150 million worldwide by 2013, according to new research.

Informa Telecoms & Media estimates that 42 per cent of these new subscriptions will come from western Europe.

Advertisement

Despite its relatively modest share of the global mobile market, the MVNO sector remains robust, according to Paul Merry, senior analyst at Informa Telecoms & Media, and author of the report.

The sector has been buoyed by the development of sophisticated segmentation strategies developed by MVNOs as a mechanism to survive in highly competitive and penetrated markets, according to the analyst.

"Indeed the variety of approaches taken by new entrant providers, which range from loss-leader approaches to using the MVNO model to deliver a full suite of customer telecommunication service options, creates numerous ways of evaluating and defining success beyond the number of subscriptions captured," he said.

The report identified nine major MVNO service approaches: discount, community, mobile network operator emulating, premium value-added services, fixed-mobile convergence, advertising & loyalty, enterprise, location-based services and telematics.

The variety of approaches taken by new providers creates numerous ways of evaluating and defining success

Paul Merry Informa Telecoms & Media

Informa expects that discount and community-orientated approaches will dominate over the forecast period, delivering approximately 55 per cent of total global MVNO subscriptions by 2013.

Part of the reason for this dominance is the fact that many discount MVNOs are pursuing multiple-Sim strategies aimed at capturing market share quickly.

"The challenging environment of advanced cellular markets has seen mobile operators closely following strategies developed by MVNOs to reach particular segments within customer communities," said Merry.

"These 'micro-segments' have become viable targets for operators as mobile penetration has reached saturation, while the wholesale model has begun to be accepted by MNOs as a means to reach the final remnants of audiences in their own highly penetrated markets.

"These factors combine to create a stable future for virtual operator approaches and provide a strong retort to industry doomsayers who claim that the MVNO model has failed after highly publicised failures most notably in North America."

On the contrary, Merry argues, the market has entered a highly developed stage characterised by market stability and devoid of the hype seen in early stages of MVNO service development again most notably seen in the North American market.

Tags:

Related whitepapers

Related jobs

Do you agree?

IT white papers

Search vnunet IThound

Top categories

Job of the week

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Hiring now on ComputingCareers:

Related IT jobs

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Advertisement

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Enter email address to edit your newsletter preferences

Watch

Shaun Nichols and Iain Thomson

10 Oct 2008

7.33 MBPodcast Special: Views from the Valley More...

Podcast image

09 Oct 2008

12.99 MBComputing podcast - IT implications of the banking crisis, and the FSA clamps down on IT security More...

Shaun Nichols and Iain Thomson

03 Oct 2008

6.49 MBPodcast Special: Views from the Valley More...

Poll

Google Android

Google Android

Are you intending to try out a Google Android mobile phone?

Previous poll results

Spotlight

Microsoft

Microsoft plans Silverlight 2.0 announcement

Web application tool revamp promised later today   More...

Stock prices

Security disclosures tip the stock market

Events such as Microsoft's Patch Tuesday could be used for...  More...

Blogs

Analyst predicts Web 2.0 fire sale

Prices for online apps could soon plummet, says Forrester   More...

MoD building

Latest data breach leads MPs to demand culture change

MoD admits to losing a hard drive containing up to...  More...

Primary Navigation