Home > Market Research > Mobile Strategies > MVNO Strategies and Forecasts to 2011

Table of Contents

Market Study
Published: January 2007
Pages: For full details, please email keithw@cmsinfo.com
Tables: For full details, please email keithw@cmsinfo.com
From: GBP 2495.00   Buy Now!
Research from: Informa Telecoms and Media
Sector: Mobile Strategies

This essential Strategic Report delivers detailed market forecasts to 2011 that allow you to monitor current and future developments across the global MVNO market and make fully informed business decisions based on the most authoritative industry data available.

Key Coverage
-Key Forecasts to 2011 - forecast data includes subscriber data to 2011 by region, by country, by enterprise and consumer use and is further segmented into fixed mobile convergence (FMC) and non-FMC use
-Country profiles - exhaustive and highly detailed country-level analysis of 21 countries including subscriber figures. A comprehensive assessment of the primary drivers and challenges facing evolving MVNO markets
-The MVNO value chain players involved in MVNO service provisioning process are critically evaluated considering those best placed to take advantage of MVNO opportunities now and in the future based on the rapidly evolving nature of the MVNO business space
-Convergence – assess the impact of fixed mobile convergence within the MVNO business environment from the perspective of MNOs, cable operators and new telecommunication entrant businesses
-Extensive MVNO database – a detailed updated breakdown of current MVNO, MVNE, and related service providers is incorporated within an MVNO database that includes host network, service approach and strategic approach analysis
-Case studies – detailed analysis of key MVNO players including: BT Fusion, Amp’d Mobile, NRJ Mobile and Jitterbug

Market Data
Asia Pacific overview
Australian MVNO subscriber numbers
Hong Kong MVNO subscriber numbers
Philippine MVNO subscriber numbers
North American overview
North American MVNO subscriber numbers
Latin America overview
Latin American MVNOs outside of the region
Bolivian MVNO subscriber numbers
Western European overview
Austrian MVNO subscriber numbers
Danish MVNO subscriber numbers
Finnish MVNO subscriber numbers
French MVNO subscriber numbers
German MVNO subscriber numbers
Norwegian MVNO subscriber numbers
Netherlands MVNO subscriber numbers
Dutch MVNO subscriber numbers
Swedish MVNO subscriber numbers
Swiss MVNO subscriber numbers
UK MVNO subscriber numbers
Eastern European overview
Estonian MVNO subscriber numbers
Latvian MVNO subscriber numbers
Russia MVNO subscriber numbers
Slovenian MVNO subscriber numbers
Ukrainian MVNO subscriber numbers
Africa and the Middle East overview

Forecasts
Subscriber Forecasts by region (Western Europe, Eastern Europe, North America, Latin America, Asia-Pacific and Middle East and Africa)
-Subscriber forecasts across 47 countries
-Segment forecasts for discount and premium MVNO subscribers
-FMC MVNO subscribers by residential use (home-zone calling)
-FMC MVNO subscribers by enterprise use segmented down to country-level

Additional forecasts include:
-Prepaid total subscribers
-Mobile entertainment revenues
-Stored Value Account (SVA) revenues

Key Issues Addressed
-Is the MVNO market sustainable?
-Is FMC a long-term driver of the MVNO business – will FMC players develop or acquire their own cellular infrastructure and what are the pros and cons of the respective approaches within the MVNO environment?
-Where are the next potential growth markets for MVNO growth?
-What are the most developed MVNO markets and which will be in the future?
-What MVNO approaches are sustainable long-term?
-How does an MVNO go about successfully launching in this evolving and challenging market?
-What type of approach is most likely to succeed and what are the strategies to ensure their success?

Countries / Sectors / Companies Covered

7-Eleven Speak-Up
9278 Mobile
AAPT
AH Mobiel
Allo
Amigo
Aspider Mobile
AT&T
Austar
Ayyildiz
B Digita
Boost Mobile
Bravocom Mobile
Breizh Mobile
BT Mobile Sense / Mobile Home
Call4Care
CBB Mobil
Cegetel
China Motion Telecom
China Unicom
Debitel
Dial n Smile
Digiplus
DNA Finland
EarthLink
Easy Mobile
Energis Mobile
Eurocom
Euroset
Fone Zone
Fresh
Go Mobile
Happy Many
Hop-On
ISIM
Jim Mobile
Jippii / Saunalahti
Kingston Communications
KORE Wireless
LCR-Primustel
Liberty Wireless
Locus Mobile
MCI
Megafon
Mobile Innovations
Mobilepro
Mondial Telecom
Mr Prepaid
MyTel
NormAction
NRJ
Payback
People Telecom
PePtalk
Phone-Plus
PLDT
Plus Line
Primus Telecommunications
Qick
Qwest
RCSC Mobile
RSLCom
Scarlet Telecom
SIMply
SK Earthlink
Slimtel
Sun Mobile
Tchibo Mobilfunk
TDC Song previously Song Networks
Tele2
TelePlus
TelLink
Telmore
Tesco Mobile
TMF
Toledo Telecom
Transatel
Trident Telecom Ventures
U Mobile
United Telecom
Value Telecom
Versatel Mobile
Virgin Mobile
WalMart
Yellow Telecom
Yesss
ZUMA Prepaid Wireless

Who should read this report
Operators
-Evaluate and quantify opportunities in various strategic roles from service provider and partner to competitor
-Identify threats and ramifications of current market developments and understand their wider strategic impact
-Anticipate market as it moves forward and formulate strategies to tackle it

Potential MVNOs
-Evaluate the opportunities and challenges
-Analyse potential strategic approaches to implementation
-Assess business models of specific industries including, brand owners, retailers, business service providers, content providers and many more
-Evaluate specific business approaches, including discount, niche, business, 3G only, community orientated and many more

Device and component manufacturers
-Understand the MVNO business proposition from the service provider perspective
-Identify key players and scope for partnerships
-Recognise evolving roles and opportunities in the MVNO service provisioning value chain

Vendors
-Understand the MVNE value proposition and platform/software providers role within it
-Identify opportunities for service provisioning and support
-Formulate service provisioning strategies for clients based on best-case approaches

Consultants, analysts and venture capitalists
-Provides unbiased, reasoned hard facts free from industry hype
-Provide clients with clear business intelligence to support recommendations and investment

Top of Page

Table of Contents

C H A P T E R 1
E X E C U T I V E S U M M A R Y 1
MVNO expectations 1
Major opportunities 1
Discount decline and convergence growth 2
MVNO service evolution 3
Figure 1.1: MVNO service evolution stages 3
Stage 1: Prevalence of the discount approach 4
Stage 2: Early VAS development 4
Stage 3: Advanced VAS development 4
MVNO market drivers 5
Factors encouraging MNOs to offer wholesale access 5
Factors encouraging MVNO market entrance 6
Figure 1.2: Drivers for MVNO market entrance 7
Current service development status 7
Figure 1.3: Service complexity roadmap 8
Figure 1.4: Global MVNO service segments – 3Q06 8
Regional development 9
Figure 1.5: Selected MVNO launches by region, 2000–2006 9
Figure 1.6: Global MVNOs* by region 2005 versus 2006 10
Forecasts overview 10
Figure 1.7: Main forecast analysis points 11
Figure 1.8: Total MVNO subscribers – 2006-2011 12
Discount versus premium development 13
Figure 1.9: Discount vs premium MVNO market share – 2006-2011 13
Figure 1.10: Discount vs premium MVNO year-on-year growth – 2007-2011 14
FMC MVNO development 14
Figure 1.11: Convergent versus other MVNO subscribers – 2006-2011 15
Conclusion 15
C H A P T E R 2
M A R K E T O V E R V I E W 17
Defining the MVNO in a changing business environment 17
Historical MVNO definitions 17
Figure 2.1: Historical MVNO definition matrix 17
This report’s definition of an MVNO 19
Figure 2.2: MVNO definition hierarchy 20
MVNO service definition evolution 20
Figure 2.3: MVNO service model development 21
Tier 2: Partner independent service developments 21
Tier 3: Partner dependent service developments 23
Tier 4: Service provider developments 23
Primary market drivers 25
Drivers for MNOs to host MVNOs 25
Factors that encourage MNOs to allow MVNO access to their networks 25
New opportunities for MNOs 26
Drivers for MVNOs 27
Figure 2.4: Drivers for MVNO market entrance 29
Prepaid 29
Figure 2.5: Global prepaid versus postpaid demand, 2005-2011 29
MVNO opportunities in emerging markets 30
MVNO differentiation in emerging markets 30
Technological issues 30
Market approach in emerging markets 31
Prepaid in emerging markets 32
Challenges of emerging markets 32
C H A P T E R 3
E V O L V I N G T R E N D S 35
MVNO service evolution 36
Figure 3.1: MVNO service evolution stages 36
Stage one 37
Prevalence of the discount approach 37
Acquisition risk 37
Service lifecycles 38
Stage two 38
Early VAS development 38
Third party entrance 39
Brand equity 39
Acquisition risk 40
Service lifecycles 40
Stage three 40
Advanced VAS development 40
Market opportunity 41
Established brand involvement 41
Loss leader and bundled approaches 41
Brand extension 42
Wholesale access and alternate access 43
Acquisition risk 44
Service lifecycles and wholesale opportunity 44
Current status of the MVNO market 44
Figure 3.2: Selected MVNO launches by region, 2000-2006 45
Figure 3.3: Global MVNOs* by region 2005 versus 2006 46
MVNE development 46
Figure 3.4: Selected MVNEs by region 47
Major MVNE markets 47
Regional overview 47
Western Europe 47
Figure 3.5: MVNO development – Western Europe 49
Eastern Europe 50
Figure 3.6: MVNO development – Eastern Europe 50
North America 51
Figure 3.7: MVNO development – North America 52
Latin America 52
Figure 3.8: MVNO development – Latin America 53
Asia Pacific 53
Figure 3.9: MVNO development – Asia Pacific 55
Africa and the Middle East 56
Figure 3.10: MVNO development – Africa and the Middle East 57
C H A P T E R 4
M V N O R E G U L AT I O N 59
Evolving regulatory challenges 60
MVNO proximity to legislation 60
3G regulation 61
Regulatory clashes 61
Increased legislative complexity 62
Figure 4.1: Evolving regulatory complexity 62
Regional implementations 63
Western Europe 63
Italy 64
France 65
Spain 67
Eastern Europe 68
Poland 68
Russia 69
Asia Pacific 70
Australia 70
India 71
China and Hong Kong 72
Japan 73
North America 74
US 74
Canada 75
Latin America 75
Chile 76
Bolivia 76
Africa and Middle East 77
Africa 77
South Africa 77
Middle East 79
Israel 79
C H A P T E R 5
P A R T N E R S H I P M O D E L S 81
Partner selection and best fit 81
Selection criteria 81
Partnerships’ compatibility and appropriateness 81
Assessment of gain versus loss 82
MNO considerations 83
Short term versus long term MVNO access 83
Partnership risk reduction strategies 83
Partnership relations 85
Network element relationships 85
Figure 5.1: MVNO to host network owner partnership models 86
Partnership adaptations – wholesale only 87
MVNE roles in network element relationships 88
Operational relationships 88
Mutualistic relationship 88
Symbiotic relationship 89
Parasitic relationship 90
MVNE proliferation and the impact on the MVNO MNO relationship 91
Legal and contractual issues 92
Common models 92
Contractual model 92
Joint venture model 93
Hybrid/MVNE model 93
General aspects of the negotiation process 94
Number/identifier allocation 94
Service-level agreement 94
Billing issues 95
General support – hardware, software and logistical 96
Brand 96
OSS and BSS interface agreements 97
Market segmentation and regulation 97
Fraud 98
Customer relationships and ownership 98
Roaming 99
Contract exit or migration 99
Conclusion 100
C H A P T E R 6
C R I T I C A L S U C C E S S FA C T O R S 101
Market opportunity and entry considerations for MVNOs 101
Market entry considerations 101
Market dynamics 102
Customer identification – market growth potential 102
Figure 6.1: Basic factors influencing wireless adoption curve rates 103
Quantifying market potential 104
Market sustainability 104
Business resource 105
Matrix analysis 105
Figure 6.2: Weighting factor matrix analysis – MVNO market potential 106
Estimating MVNO potential 108
Key success factors 108
Identification of niche markets 108
Niche markets and MNOs 109
Consumer market intelligence 109
Brand strength 110
Brand equity 110
Global brand influence 110
Brand strength in emerging markets 111
Brand extension 112
Distribution channels 112
Marketing and distribution – effectively accessing market segments 113
Internet distribution 113
Retail/POS 114
Other distribution channels 115
Operational success factors 116
Customer payment methods – prepaid 116
Solution complexity and cost 116
Customer targeting 116
Acquisition of customers 117
Market potential 117
Challenges of prepaid 118
Prepaid and mobile transactions 118
Billing and CRM 119
MVNO billing system requirements 119
Effective CRM 121
Figure 6.3: Selected rules-based analysis used in customer lifetime expectancy 124
Cost control – airtime charges 124
‘Retail minus’ charging mechanism 125
‘Cost plus’ charging mechanism 125
Other charging approaches 126
Cost control issues 126
C H A P T E R 7
M V N O A N D M N O M A R K E T A P P R O A C H 127
The MNO position 127
Using an MVNO for acquisition, retention and revenue generation 127
Advantages of outsourcing 128
Outsourcing risks 129
3G and MVNO revenue generation 129
3G and customer acquisition 130
3G and customer retention/relationships 131
Wholesale provision risks and opportunities 132
Wholesale price negotiation – the MVNO paradox 133
Wholesale versus retail 134
The MVNO position 134
MVNO strategies for acquisition, retention and revenue generation 134
Acquisition 135
Figure 7.1: Collaborative MVNO approach 135
Retention 136
Increasing ARPU 136
Incremental and indirect revenue generation 137
Supplementary revenue opportunities – advertising and sponsorship 138
The MVNO as a loss leader 140
MVNO approach and market leader theory 141
Figure 7.2: Market leader discipline theory: strategic market approach model 142
MVNO market approaches 143
Competing on value – discount MVNOs 143
Competing on superior product or service 145
Competing on brand 147
Competing by market focus – niche market opportunities 148
Customer market/community focus 149
Product market focus 150
C H A P T E R 8
S T R A T E G I C O P P O R T U N I T I E S B Y B U S I N E S S S E C T O R 157
Fixed operators, ISPs and broadband providers 157
Opportunities and strengths 158
Challenges 158
Business approach 159
Brand advantages 160
Business support considerations 160
Mobile service and content providers 161
Content service provider approaches 161
Mobile/online games development and distribution companies 162
Figure 8.1: Global mobile games revenue by region, 2006-2011 162
Community opportunities 163
Business approach 163
Business support considerations 164
Distribution 164
The evolving reseller role 165
Opportunities 165
Challenges 165
Media-owning companies 166
Market opportunity 166
Market approach 166
Market challenges 166
Distribution 167
Business support considerations 167
Retailers 168
Market opportunity 168
Market challenges 168
Distribution 168
Content approach 168
Customer data owning companies 169
Banks 169
Market opportunity 169
Accessing the youth and student segments 170
Stored value accounts (SVA) 170
Figure 8.2: Prepaid ARPU and revenue forecasts 171
Distribution 171
Business support considerations 172
Market challenges 172
Utility companies 173
Market opportunity 173
VIII
Market approach and challenges 173
Business support considerations 174
Distribution 174
Opportunities for vendors 175
Hardware/infrastructure vendors 175
Handset vendors 175
Evolving service models for vendors 175
MVNE business opportunity 176
Cost comparisons 176
MVNE involvement 176
MNOs as MVNEs 177
MVNE market challenges 178
C H A P T E R 9
S E R V I C E I M P L E M E N T A T I O N S 179
Status of MVNO service developments 179
Approach 179
Figure 9.1: Service complexity roadmap 180
Global outlook 181
Figure 9.2: Global MVNO service segments – 3Q06 181
Regional outlook 182
Figure 9.3: Regional analysis of MVNO, by service type 182
Figure 9.4: MVNO service approach by region 183
Market reporting distortion 183
Major FMC markets 184
Figure 9.5: US MVNO service approach 185
Figure 9.6: Western European MVNO service approach 186
Case studies 186
BT Fusion 187
Background 187
Figure 9.7: BT wireless launches and market strategy 188
Market focus 188
Partner relationship 189
Market challenges 190
Handsets 191
Pricing 191
Figure 9.8: BT Fusion pricing packages – 4Q06 192
Amp’d Mobile 193
Background 193
Market focus 193
Market focus and strategy 194
Handsets 197
Service offering 198
Network management 199
Data service platform 199
NRJ Mobile 200
Background 200
Market focus and strategy 200
Market challenges 201
Handsets 203
Service offering 203
Pricing 204
Network management 204
Jitterbug 204
Background 205
Market focus and strategy 205
Market challenges 206
Handsets 206
Figure 9.9: Jitterbug handset models 207
Service offering 208
Pricing 208
C H A P T E R 1 0
R E G I O N A L D E V E L O P M E N T S 209
The forecast challenge 209
Market analysis 210
Asia Pacific 211
Regional overview 211
Westernised markets 211
Asia-centric Japan and South Korea 211
Developing markets 213
Figure 10.1: Asia Pacific – selected MVNOs, MVNEs and service providers 214
Australian MVNO market 217
Figure 10.2: Australian MVNO subscriber numbers, 2Q05-3Q06 217
Hong Kong MVNO market 218
Figure 10.3: Hong Kong MVNO subscriber numbers, 2Q05-3Q06 218
Philippines MVNO market 219
Figure 10.4: Philippines MVNO subscriber numbers, 2Q05-3Q06 219
North America 220
Regional overview 220
Success in undersubscribed markets 220
Failure in high value niches 221
Challenges of mobile convergence in North America 223
Figure 10.5: North America – selected MVNOs, MVNEs and service providers 225
US MVNO market 231
Figure 10.6: US MVNO subscriber numbers, 2Q05-3Q06 231
Latin America 232
Regional overview 232
Market opportunity versus market reality 232
Existing MVNO player strategies 233
Latin American MVNOs outside the region 234
Figure 10.7: Cotas – the Latin American MVNO 234
Bolivian MVNO market 234
Figure 10.8: Bolivian MVNO subscriber numbers, 2Q05-3Q06 234
Western Europe 235
Regional overview 235
Discount voice and its future 235
FMC and MVNOs in Europe 236
Figure 10.9: Western Europe – selected MVNOs, MVNEs and service providers 238
Austrian MVNO market 251
Figure 10.10: Austrian MVNO subscriber numbers, 2Q05-3Q06 251
Danish MVNO market 252
Figure 10.11: Danish MVNO subscriber numbers, 2Q05-3Q06 252
Finnish MVNO market 253
Figure 10.12: Finnish MVNO subscriber numbers, 2Q05-3Q06 253
French MVNO market 254
Figure 10.13: French MVNO subscriber numbers, 2Q05-3Q06 254
German MVNO market 255
Figure 10.14: German MVNO subscriber numbers, 2Q05-3Q06 255
Netherlands MVNO market 256
Figure 10.15: Dutch MVNO subscriber numbers, 2Q05-3Q06 256
Norwegian MVNO market 257
Figure 10.16: Norwegian MVNO subscriber numbers, 2Q05-3Q06 257
Swedish MVNO market 258
Figure 10.17: Swedish MVNO subscriber numbers, 2Q05-3Q06 258
Swiss MVNO market 259
Figure 10.18: Swiss MVNO subscriber numbers, 2Q05-3Q06 259
UK MVNO market 260
Figure 10.19: UK MVNO subscriber numbers, 2Q05-3Q06 260
Eastern Europe 261
Regional overview 261
MVNOs used to drive MNO market share 262
Consolidation and acquisition 262
Convergence on the horizon 263
Figure 10.20: Eastern Europe – selected MVNOs, MVNEs and service providers 264
Estonian MVNO market 265
Figure 10.21: Estonian MVNO subscriber numbers, 2Q05-3Q06 265
Latvian MVNO market 266
Figure 10.22: Latvian MVNO subscriber numbers, 2Q05-3Q06 266
Russian MVNO market 267
Figure 10.23: Russian MVNO subscriber numbers, 2Q05-3Q06 267
Slovenian MVNO market 268
Figure 10.24: Slovenian MVNO subscriber numbers, 2Q05-3Q06 268
Ukrainian MVNO market 269
Figure 10.25: Ukrainian MVNO subscriber numbers, 2Q05-3Q06 269
Africa and the Middle East 270
Regional overview 270
C H A P T E R 1 1
F O R E C A S T S 271
Methodology 271
Overview 271
Detailed approach 272
Figure 11.1: Main forecast analysis points 272
Use of weighted matrix analysis 274
FMC MVNO methodology 274
General assumptions 275
Forecasts 276
Global overview 276
Figure 11.2: Total MVNO subscribers – 2006-2011 276
Global discount and premium MVNO subscriber development 277
Figure 11.3: Discount vs premium MVNO market share – 2006-2011 277
Figure 11.4: Discount vs premium MVNO year-on-year growth – 2007-2011 278
Global FMC MVNO subscriber development 279
Figure 11.5: Convergent versus other MVNO subscribers – 2006-2011 279
Figure 11.6: Enterprise and residential FMC MVNO subscribers – 2006-2011 280
Regional analysis 281
Figure 11.7: Global MVNO subscribers by region – 2006-2011 281
Figure 11.8: Regional MVNO market share – 2006-2011 282
Regional discount and premium MVNO subscriber development 283
Figure 11.9: Regional discount and premium share – 2006-2011 283
Figure 11.10: Premium and discount subscriber share – 2006 and 2011 284
Regional FMC MVNO subscriber development 285
Figure 11.11: Regional FMC MVNO subscribers – 2006-2011 285
Figure 11.12: Regional FMC consumer and enterprise – 2006-2011 286
Country analysis 288
Western Europe 288
Figure 11.13: Western European MVNO subscribers – 2006-2011 288
Figure 11.14: Western European discount MVNO subscribers by country – 2006-2011 290
Figure 11.15: Western European premium MVNO subscribers by country – 2006-2011 290
Figure 11.16: Western European FMC residential MVNO subscribers by country – 2006-2011 . 291
Figure 11.17: Western European FMC enterprise MVNO subscribers by country – 2006-2011 291
Eastern Europe 292
Figure 11.18: Eastern European MVNO subscribers – 2006-2011 292
Figure 11.19: Eastern European discount MVNO subscribers by country – 2006-2011 293
Figure 11.20: Eastern European premium MVNO subscribers by country – 2006-2011 293
Figure 11.21: Eastern European FMC residential MVNO subscribers by country – 2006-2011 294
Figure 11.22: Eastern European FMC enterprise MVNO subscribers by country – 2006-2011 294
North America 295
Figure 11.23: North American MVNO subscribers – 2006-2011 295
Figure 11.24: North American discount MVNO subscribers by country – 2006-2011 296
Figure 11.25: North American premium MVNO subscribers by country – 2006-2011 296
Figure 11.26: North American FMC residential MVNO subscribers by country – 2006-2011 296
Figure 11.27: North American FMC enterprise MVNO subscribers by country – 2006-2011 296
Latin America 297
Figure 11.28: Latin American MVNO subscribers – 2006-2011 297
Figure 11.29: Latin American discount MVNO subscribers by country – 2006-2011 298
Figure 11.30: Latin American premium MVNO subscribers by country – 2006-2011 298
Figure 11.31: Latin American FMC residential MVNO subscribers by country – 2006-2011 298
Figure 11.32: Latin American FMC enterprise MVNO subscribers by country – 2006-2011 299
Asia Pacific 299
Figure 11.33: Asia Pacific MVNO subscribers – 2006-2011 299
Figure 11.34: Asia Pacific discount MVNO subscribers by country – 2006-2011 301
Figure 11.35: Asia Pacific premium MVNO subscribers by country – 2006-2011 301
Figure 11.36: Asia Pacific FMC residential MVNO subscribers by country – 2006-2011 302
Figure 11.37: Asia Pacific FMC enterprise MVNO subscribers by country – 2006-2011 302

Middle East and Africa 303
Figure 11.38: Middle East and Africa MVNO subscribers – 2006-2011 303
Figure 11.39: Middle East and African discount MVNO subscribers by country – 2006-2011 305
Figure 11.40: Middle East and African premium MVNO subscribers by country – 2006-2011 305
Figure 11.41: Middle East and African FMC residential MVNO subscribers by country – 2006-2011 . 305
Figure 11.42: Middle East and African FMC enterprise MVNO subscribers by country – 2006-2011 306
Glossary 307

For full details, please email keithw@cmsinfo.com

Top of Page

Buy now!

Paper

 GBP 2495.00   

Single User PDF

 GBP 3745.00   

Single User PDF + Paper

 GBP 4990.00   

Your personal guarantee

Top of Page