The MVNO market boom, boom, BUST
Rating: hmmm
By Bena Roberts
Mobile Virtual Network Operators (MVNO) only control a tiny proportion of the voice or data market. Their introduction into the mobile environment was initially feared because their influence was strong. Virgin was an early mover and its success spiked dread into mobile operators’ hearts. However; apart from Virgin all MVNO’s in the market seem to be underperforming, deceased or finding it hard to find their feet.
A few months ago ROK purchased advertising player Xero and then XE Mobile has now failed and on top that even EASY didn’t make it. MTV in Germany is OK – but the success stories are coming only from branded operator propositions such as BASE or Ay Yildiz from KPN and E-Plus.
It seems that the operator is vital for the success of the mobile MVNO and a multi-brand strategy is more important than a mere MVNO strategy.
All mobile operators need to become enablers rather than wholesalers. This is the only way that the MVNO market will succeed in the future.
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2 Responses to “The MVNO market boom, boom, BUST”
You missed the biggest MVNO - Tracfone.
Tracfone uses multiple providers (CDMA & GSM)
Tracfone is clearly doing just fine - you can find it in any bodega, and it isn’t priced cheap.
Comment made on December 14th, 2007 at 1:57 pmThanks Bill.
Comment made on December 15th, 2007 at 3:02 pmI think you hit the nail on the head “it isn’t priced cheap” no MVNO can be and have a money making business model.
Thanks bena
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