Research Notes

The Mobile Battle of Britain

TDC, easyGroup and T-Mobile join forces.

A new partnership, that many people have been talking about the last months have seen the light of Day.

The Question is not, if this will have influence on the UK mobile market, the question is which influence? Many people have said that easyMobile be the cause of destruction of the price-level in the English market. We at Strand Consult, believe it is not easyMobile alone that will influence the prices, because the prices in the UK mobile market compared to other countries are high, and these prices only have one way to go, DOWN!

Especially prepaid customers, who in the UK pay very high tariff, will the next 12-24 months see prices decline towards the levels of post-paid customers. It has already happened in Denmark, Norway and other European countries. Strand Consult believes that T-mobile strategy in the UK is very clear. They have acknowledged that the UK mobile market is divided between 4 main players – T-mobile, Vodafone, O2 and Orange, 3 beeing the dark horse of the market. Experience shows that Sub brand created as MVNO’s like Virgin Mobile and easyMobile can be an effective tool for T-mobile to keep and gain market share from Vodafone, O2 and Orange. Telmore’s success in the Danish Market, meant that TDC (The leading Danish Mobile Operator) not only kept market share, but also increased it, because Telmore choose TDC as MNO.Telmore’s success in Denmark is directly linked to Orange choosing to leave Denmark, and selling their Mobile network and client base to TeliaSonera. More information about easyMobile, Telmore and what happened in the Danish market.
EasyMobile – The inside story

Strand Consult’s view on EasyMobile’s entry onto the scene as Discount MVNO:

MVNO’s will turn the UK mobile market upside down:

Are you prepared to loose many of your prepaid customers?

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