Once again the Danish MVNO market is showing the way
|Onfone is a successful Danish MVNO has targeted the medium and heavy user mobile customers.|
|When it comes to innovation in the MVNO world, Denmark has always stood out. It was Danish companies like the no-frill MVNOs Telmore and CBB that showed the rest of the world how web-based MVNOs – with no physical distribution channels – could in the space of just a few years acquire almost 20 % of the Danish mobile customers with their unique new concepts.The story about Onfone started when an IP telephony company chose to focus on mobile telephony and then persevered as they time and time again tried to reinvent themselves, until they found the correct formula that allowed them to suddenly take off and dominate the Danish mobile market.But this is also the story about how a cost-efficient market player entered the market with a product that allowed mobile customers with an ARPU of between 33 and 66 euros per month to save up to 50% of their existing mobile costs. It is no secret that Strand Consult is one of the companies that knows most about what has been happening on the MVNO market during the past 10 years. We were the first company to publish the initial story and subsequent reports that web-based no-frill MVNOs would change the mobile world. Today our MVNO reports have been purchased and are being used by over 100 mobile operators around the world. The Moment of Truth – A portrait of the Discount MVNO / Mobile Operators’ successIn our latest update of our How to Succeed in the Second-Generation MVNO Market report we have included a detailed case study of Onfone and how they in a record-breaking space of time created a successful prepaid MVNO with an average customer ARPU of 23 euro per month. Onfone chose to sell their business to the Danish incumbent TDC, at a price that corresponded to 200 euro per customer.The Onfone case is yet another example of MVNOs often been far more successful at running a cost efficient business than the existing mobile operators. This is most often due to MVNOs being far more focused, and offering very clear messages that the customers they are targeting easily can understand.Once again, Strand Consult has spent the necessary time and manpower to analyse and describe Onfone’s success. In our new report How to Succeed in the Second-Generation MVNO Market you can read more about:|
1. The historical facts – how Onfone was founded
2. Which phases did Onfone go through before finding a concept that worked?
3. What terms and conditions did Onfone have with the operator that was hosting them?
4. What products were they selling to achieve an ARPU of 23 euro/month – why were they successful?
5. How can you create and launch a MVNO that in just nine months can acquire 15% of the gross adds on the market and X% of the Danish mobile voice traffic?
6. What effect did Onfone’s success have on the four Danish MVNOs; TDC, Telia, Telenor and 3, and how did they react to Onfone?
7. What effect did Onfone have on the Danish MVNO market and how did the other Danish MVNOs react to Onfone?
8. The story of how 10 directors from the four Danish operators lost their jobs due to Onfone.
9. Why did TDC purchase Onfone and what effect did it have on Telenor when they lost Onfone from their network? Is there any truth that Telenor’s financial EBIT results will drop by 30% during the next six months?
10. How will the purchase of Onfone affect TDC and the Danish market? Will that purchase start the next wave of consolidation in Denmark, resulting in the Danish market moving from 4 to 3 mobile networks?
11. Can you compare what is currently happening in Denmark with what happened when the two original Danish MVNOs Telmore and CBB were directly responsible for Orange giving up in Denmark and selling their whole operation to TeliaSonera?
12. Is it possible for copies of Onfone to be successful in other countries, and if yes, what countries are best suited and have the largest chance of success?
13. Has Onfone been a successful business for any of the existing Danish MNOs and if yes, which MNOs and why?
All in all our case study gives you a very detailed description of Onfone, how the company developed over time and how they have influenced the Danish market. It is very important to us that we always deliver specific, impartial and detailed information to our customers, which is why our research is never based on newspaper articles or information from the Internet, but on direct inside information from the companies in question, information that journalists and others in the industry do not have access to.
Strand Consult has the world’s largest MVNO research department, no other company has published as much, or as detailed information and knowledge about this market as Strand Consult. You will often see our information and case studies from our reports being quoted by people at conferences and being used in articles.
If you would like to learn more about the Onfone case and our new report How to Succeed in the Second-Generation MVNO Market&nbsp; please do not hesitate to call or write to us. We would be delighted to have the opportunity to tell you more about the strategic knowledge we can offer you about the MVNO market, what it looks like and how it is developing.
More information: How to Succeed in the Second-Generation MVNO Market