Home > Market Research > Mobile Networks > The MVNO Directory 2009

Table of Contents

Directory
Published: February 2009
Pages: 266
Tables: For full details, please email keithw@cmsinfo.com
From: GBP 795.00   Buy Now!
Research from: Blycroft Publishing
Sector: Mobile Networks

The MVNO Market

• What is an MVNO?
• What is an MNO?
• Who are the players in this sector?
• How long have they then been around?
• What do MVNOs offer and who do they target?
• Where do they operate?
• Who operates MVNOs and which networks partner with them?

Many questions exist about MVNOs and with the release of Blycroft’s MVNO Directory 2009 now is the time that many of these become answerable. Close to 400 operators are active in this market and a further 70 branded operations are acting as MVNOs. A further 90 operations could be launching soon and that does not include those in the making behind closed doors.

But to start with, what is an MVNO? There are many theories and statements from the mobile industry defining what makes up an MVNO. Technical terms such as minutes of use and spectrum allocation are used in defining true MVNOs. The mainstream opinion of what makes an MVNO has simplified since the launch of the MVNO pioneers back in the late 90s. The most straight forward definition is, an MVNO is any mobile operator which does not own a physical network. Even that definition has its exceptions but it is the most widely accepted and as such is used for The MVNO Directory.

The theory is, if a company sells a mobile phone service to an end user and manages the relationship with that user, including the processes of billing and marketing, then they are performing the function of the operator. However, they lack a physical existence as they use another operator’s base stations - so they are acting virtually. The operator which owns the base stations is therefore a mobile network operator (MNO) and the virtual company is a mobile virtual network operator (MVNO). Using this definition means that mobile service providers are incorporated into the MVNO space.

As examples, the most known MVNO is Virgin Mobile UK. Cited as being the first MVNO it is also one of the most successful MVNOs. The operation rapidly became popular within the UK youth market and illustrated that MNOs needed to think differently if they were to increase both the size and value of the mobile voice and messaging markets. Now MVNOs exist in many countries targeting almost every imaginable demographic. For instance, Lycamobile has emerged from the calling card market and has witnessed rapid expansion as a European MVNO targeting ethnic populations and the international calls market. Still within the UK, Blyk has launched successfully as a no-cost service and looks set to expand across Europe. Across the Atlantic and in the USA, big names have ventured into the market expecting big returns by winning large quantities of clients from their existing customer bases. However, the formula is not always that straight forward. ESPN and Disney both put this theory into action, both companies have since retreated to supplying mobile content instead of mobile services. At the same time the launch of Disney Mobile UK was cancelled, but Disney Mobile Japan went ahead. The service is still trading and reportedly a big hit with the overall female market, not just children.

The existence of MVNOs relies on MNOs to allow them access to their networks. Regulatory approval, enhanced legislation and licenses specifically for MVNOs have failed as driving forces in pushing forward MVNO launches. Perhaps the biggest catalyst for MVNOs is an underperforming third or fourth MNO. The MNO will have spent capital on a spectrum license, building out its physical network, purchasing and deploying OSS and BSS products for its back office systems and then putting its plans into a marketing campaign and employing staff to run the whole thing. If you were the number one MNO why would you want to allow a third party onto your network? They could churn your subscriber base and then give you back a percentage of the revenue you already had 100% of. For the underperforming MNO the situation is different. The start-up capital will have left the MNO owing millions of dollars and the day to day running costs may also exceed subscription revenues. The MNO needs to do something to address their negative balance sheet and not having many clients means their exposure to churn is less than their competitors, the other MNOs. By allowing an MVNO onto their network they can indirectly increase their subscriber base, receive revenues from the MVNO (which receives them from their subscribers) and take a swing at the bigger MNOs all in the same process. What then follows is a process where the other MNOs recognise the danger posed by the MVNO and allow a partner MVNO onto their network. The MNOs recognise they may lose revenue but it is better to have the subscribers churn to their partner MVNO than their competitors’ MVNOs. Further proposals are accepted and the market reaches a point where each MNO has multiple MVNOs. The Netherlands is the best example of this proliferation of MVNOs. The Netherlands has a small population catered for by 4 MNOs, active MVNEs and over 40 active MVNOs, 6 branded operations and at least 6 more MVNOs in the planning stages. Having noted the battle to avoid churn it is also worth pointing out that not all MVNO activity focuses around churn. It is equally true that MVNOs find and create markets where MNOs have elected to miss out. This was after all the whole driving force of Virgin Mobile UK. A brand which recognised that little existed for young people in the mobile market, now Virgin Mobile UK rivals other MNOs and is known globally as a super MVNO.

Commonly targeted customer bases for new MVNOs are bargain hunters, international callers, roaming clients, multi-play offerings (mobile phone, TV, fixed line or Internet services from the one company), sports fans, mobile content users, existing in-store customers, youth markets, business users and in some cases just anyone and everyone. The list does go on and this is the main driving force for new MVNO launches. Where there is an identifiable group of people and someone believes these people have a combined demand for their own network - someone will commission it.

The short answer to what do MVNOs offer is quite simply everything mobile. The simplest MVNOs offer just voice or data only services with no gimmicks, fads, special features or tie ins. The biggest operations offer mobile TV, mobile broadband, MMS, SMS, GPRS, pre-pay, post-pay, hybrid contracts, top of the range handsets, international roaming, online account management or concierge based account managers. The truth is that anything the host MNO offers so too can the MVNO, so long as their agreement and in house software allows for these extras. These value added services can be the driving force for an MVNO, such as Helio, now owned by Virgin Mobile USA.

This represents a brief account of the MVNO market. Available as of February 2009 is the 3rd edition of Blycroft’s MVNO Directory, The MVNO Directory 2009. By purchasing this directory you will gain access to the mobile industry’s guide to MVNOs. From it you can see how many MVNOs are currently active, which countries they operate in, when they launched, who they partnered with for their network access, what services they offer, who they target and crucially we have provided named contacts and contact information.

The MVNO Directory 2009 can be ordered as either a PDF or as an Excel data file.

Click here for the MVNO Directory 2009 Brochure

Top of Page

Table of Contents

The MVNO Directory 2009, published February 2009, found 366 companies offering mobile services as either an MVNO or mobile service provider. From these 366 companies we identified over 400 active operations, but consolidated some of these into a single profile.

- 366 active operations
- 89 operators who may launch
- 72 mobile brands identified
- 820 named contacts
- Details of MVNOs no longer trading

The MVNO Directory 2009 profiles both MVNOs and SPs. Profiles of active operations consist of the following data points (data provided where possible):

• Operation Name
• Geographic focus
• Telephone (mainly switchboard numbers)
• Fax
• URL
• Generic e-mail
• Postal address
• Launch date
• Parent company name / industry / URL
• MNO partner name / URL
• Management (named contacts and job titles for 289 operations - usually within the senior management team)
• Target customer type
• Type of service (pre-pay / post-pay)
• Messaging offered (SMS / MMS)
• Roaming status (international)
• Mobile Internet status

The directory does not include subscriber data, personal e-mail addresses or direct-line telephone numbers. All information is provided where possible. Data gathered for the 3rd edition was sourced during January 2009

For full details, please email keithw@cmsinfo.com

Top of Page

Buy now!

PDF 1-user

 GBP 795.00   

PDF 2-5 users

 GBP 995.00   

PDF 2-5 users + Excel

 GBP 995.00   

PDF + Excel 1-10 users

 GBP 1495.00   

PDF + Excel 11+ users

 GBP 1995.00   

Your personal guarantee

Top of Page