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MVNO Business Models in Western Europe
Albany, New York (PRWEB) April 16, 2014
This report provides a review of key trends in the MVNO market in Western Europe, an outlook of opportunities for MVNOs for the next five year and an analysis of how the MVNO business model is evolving to remain competitive and in line with the changing profile of customer demand in the region.
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Key Findings
In 2013, MVNOs had 105m subscriptions, 18% of total mobile base, which is by far the largest MVNO market share in terms of subscriptions across all regions.
About 45% of the region's MVNO subscriptions came from Germany, where the MVNO market share is a whopping 40%. Besides Germany, the UK, Belgium and the Netherlands are the region's hotbeds for MVNO growth.
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MVNOs of Western Europe are pursuing a multi-brand, multi-country strategy much like their MNO peers to scale their businesses, optimize costs and improve margins. Sourcing wholesale access from multiple network operators and/or MVNAs has also proven effective in cost reduction.
MVNOs are positioning themselves for growth in the mobile data and M2M markets in Western Europe. To encourage data uptake, many of the region's MVNOs including the no-frills, prepaid MVNOs, have rolled out flat-rate service packages including voice, data and messaging that are more attractively priced than classic rate plans.
Foray into the mobile data market has resulted in a more pronounced role in the mobile device value chain for some of the region's MVNOs, whereby they are offering handset subsidies, reverse subsidies and financing in exchange for service commitments.
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Through 2018, we expect the MVNO market to grow faster than the overall mobile market, with many new MVNOs in the market. Data services, flat-rate packages and the increasing role of MVNOs in handset distribution will lead to a significant increase in postpaid MVNO subscriptions.
We expect that opportunities are abound in the M2M/telematics markets for MVNOs in Western Europe, particularly those that can bring a deep understanding of the operations of specific verticals. We expect an increased MVNO activity in this segment over the next five years.
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Synopsis
This report provides a review of key trends in the MVNO market in Western Europe, an outlook of opportunities for MVNOs for the next five year and an analysis of how the MVNO business model is evolving to remain competitive and in line with the changing profile of customer demand in the region. Included are examples from many of the region's MVNOs, including Germany's freenet, Drillisch, Aldi Talk, Turkcell and Turk Telekom, Virgin Mobile UK, Lycamobile and Lebara. We examine how these MVNOs price and differentiate their services, and we conclude with some recommendations built around the best practices identified throughout the report.
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Reasons to buy
This report provides key inputs for the business strategy of market players including MVNOs, MNOs and vendors vis-a-vis an assessment of key trends in the MVNO market, demand for mobile services, MVNO market share and breakdown of mobile service revenue by voice and data for the 2013 and 2018 period in Western Europe and key markets of growth.
The report analyzes the implications of a growing base of smartphone and mobile data users on the MVNO business model and the evolution of MVNO product and pricing strategies through detailed examples from the region, which should inform market players on optimal market positioning for MVNOs.
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