WCIS Insight: Global MVNO Operations - A study of current business models and emerging opportunities

Key issues addressed:

• Can the MVNO business model be transferred to high-growth mobile markets in Africa, the Middle East and Asia Pacific?
• Which markets are likely to welcome MVNOs for the first time in the next three years?
• How is the MVNO business model set to change in 2009 and beyond?
• What are some of the niche marketing opportunities from which new MVNOs can benefit?
• What do MNOs look for in a partnership with MVNOs and how can operators look to differentiate from their competitors by hosting MVNOs?
• What lessons can be learned from the failure of numerous MVNOS in North America and Europe?
• Is there a strong case for the pan-regional MVNO operator?
• Will existing MNOs allow MVNOs to share a slice of the basic voice market in sub-Saharan Africa?
• Is India the ultimate prize for MVNOs? Would MVNOs be able to compete in such a crowded market?

Market Data covered:

• Global, potential new MVNO markets by region
• Global MVNOs and resellers in service by regional market shares 2008
• North America MVNO market status and licensing opportunities March 1Q09
• North America mobile subscription data for selected MVNOs in service 3Q07-3Q08
• Western Europe MVNO market status and licensing opportunities 1Q09
• Western Europe mobile subscription data for MVNOs in service 3Q07-3Q08
• Eastern Europe MVNO market status and licensing opportunities 4Q08
• Eastern Europe mobile subscription data for selected MVNOs in service 3Q07-3Q08
• Asia Pacific MVNO market status and licensing opportunities 4Q08
• Asia Pacific mobile subscription data for selected MVNOs in service 4Q07-4Q08
• Latin America and the Caribbean MVNO market status and licensing opportunities 1Q09
• Latin America and the Caribbean mobile subscription data for selected MVNOs in service 3Q07-3Q08
• Middle East MVNO market status and licensing opportunities 1Q09
• Africa MVNO market status and licensing opportunities 1Q09

Key Highlights:

• The region with the largest number of MVNOs/resellers is Western Europe, which also comprises approximately two-thirds of all MVNO subscriptions globally, ahead of North America (22%) and Asia Pacific (10%).
• Informa expects a number of high-growth markets to embrace the MVNO/reseller business model in the next three years, especially in Middle East, Africa and the Indian sub-continent. Oman and Jordan became the first countries in the Middle East to award licenses to resellers and it is likely that similar awards will be made in Saudi Arabia and Bahrain. Research suggests that regulators in many markets including Morocco, Egypt, India and Pakistan are all preparing to build MVNO frameworks.
• The MVNO market remains competitive in USA with 43 such companies in operation of which Tracfone is the largest with 10.5m subscriptions, as of 3Q08. The US market has seen a host of failed MVNOs, whose offerings have been taken on by partner MNOs or whose value propositions failed. There is likely to be continued consolidation in this market with only those MVNOs with a robust business model likely to survive.
• Despite Europe being the most mature of MVNO markets, there is likely to be a number of countries in the region welcoming MVNOs for the first time in the coming years including Hungary, Turkey, Israel (these two countries are included in the West Europe chapter of this report) and Bosnia Herzegovina.
• The lion’s share of MVNO subscriptions in Asia Pacific can be found in Australia, Japan and Korea, although Hong Kong’s market is the fastest growing country. The possible emergence of India and Pakistan as MVNO markets could significantly accelerate the region’s growth rate.
• There is potential for MVNO entry in Africa although MNOs may be uncomfortable about new challengers in the voice market. There is more room for capacity resellers in the region’s fast growing data market. Whilst the number of data network deployments in Africa is on the rise, MVNO deployment is likely to be challenged by reluctance from incumbents to share their networks with virtual operators.

Who should read this report:

• Operators
• Vendors
• Telecoms Strategists
• Content Providers
• Financial Institutions
• Consultancies
• Governments
• Regulators
• Retailers
• Entertainment companies

Markets Covered:

• Western Europe
• Eastern Europe
• North America
• Latin America and the Caribbean
• Middle East
• Africa
• Asia Pacific