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MVNO strategies to survive the economic downturn

Despite the economic downturn, there are still exciting new markets for MVNOs to enter, as well as new types of players looking to launch services. For those competing in saturated markets, the low-cost MVNO structure will help them survive and there is the potential to grow as consumers look for new ways to reduce their mobile costs.

Success is most likely for those MVNOs that have targeted offerings for specific market segments. In addition there is the growth of data-focused MVNOs, but the challenge for them is how to differentiate from their host providers.

Find the right market and the right business model

Recent regulatory changes have meant that new markets are now opening up to MVNOs; most recently the governments of India, Israel and Turkey have set out their intentions to welcome MVNOs to the market. The Middle East continues to be of interest to potential players and we've seen recent announcements around launches in Oman, with two players recently signing wholesale agreements.

There is no doubt that the MVNO business model continues to be of interest to new players. Retailers are still keen to offer mobile services; for instance, Ikea has announced its intention to launch services in Spain following its UK launch last year. But, more interestingly, we've seen interest from less traditional MVNO players. There is speculation that both Ericsson and Nokia have shown an interest in launching MVNO services in India, and Nokia is rumoured to be setting up a Japanese MVNO operation. Such a move by a vendor would be a significant departure from the traditional business model of selling devices through third parties. We believe that the MVNO model is of interest as it allows a direct customer relationship, which is a key component of a SMART player strategy

Источник: Ovum

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