Research Notes

The winner takes it all – almost!

Stand Consult’s analyses show that on almost all mobile markets with many MVNOs, 3-4 market players have acquired 60-80% of the MVNO customers after just a few years. A lot has been said and written about the MVNO market. Strand Consult is without doubt the single company that has conducted the most research and published the most knowledge in this area over the past eight years. But we have not only published a number of reports that explain in detail how to be successful on the MVNO market, we have also published a number of research notes that describe the newest trends in this area.

In connection with updating our comprehensive MVNO market report: MVNO2, we have not only studied which MVNOs have been successful around the world, but also which and how many MVNOs are now dominating their market. The conclusions are very clear and apply across a great number of markets. We have concluded the following:

1.       After a period of 4-6 years, 3 to 4 MVNOs will have acquired 60 to 80% of the total number of MVNO SIM cards on the market.

2.       The most successful MVNOs can be divided into three categories: large retailers, ethnical MVNOs and Web-based no frill market players focusing on low national prices.

3.       The price of a minute, a SMS and for data traffic are important parameters when customers choose provider. Those providers that believe that they can attract customers by offering advanced VAS are most often the companies with the poorest results on the market.

4.       PR plays an important role in the marketing of an MVNO. Press coverage and a high position in price comparison guides helps reduce acquisition costs and increases customer loyalty.

5.       The most successful MVNOs do not target or attract the mass-market in the same way as a MNO – instead their success is always related to specific segments.

6.       Successful MVNOs often have very low acquisition costs, very loyal customers and an extremely low churn rate. Especially the no frill MVNOs often have a churn rate of around 1% a month and can thereby enjoy a churn rate that is around 30-60% under a normal MNO.

7.       The operator with the most aggressive MVNO strategy creates the greatest shareholder value for themselves and most probably thereby ensures the opposite for their competitors.

8.       It is not possible to use a segmentation strategy and advanced computer simulation models to predict which MVNOs will be successful and which will be less successful. An operator that wants to do business on this market must allow all MVNOs on board and hope they have attracted the MVNOs with the best potential.

In other words the MVNO market is really very complex and it is most often companies that are being run by a professional and innovative management team that are most successful.

Our report How to Succeed in the Second-Generation MVNO Market describes in detail how to approach this market. Regardless of whether you are a mobile operator, MVNO or provider the 414 pages explain in detail the knowledge you need to save a great deal of expensive consultancy services.

Strand Consult has the world’s largest MVNO market research department. We have time and time again predicted how a number of markets will develop. Do not hesitate to receive more knowledge today and increase your success tomorrow   
More information: How to Succeed in the Second-Generation MVNO Market

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