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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