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Home > Communications > Wireless > Networking
Rethinking MVNO and MVNE Economics - The Future of Mobile Virtual Models
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| Published Date:
August 2007
Published By:
Pyramid Research
Page Count:
50
Order Code:
R8-569
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The MVNO business has never been as good an opportunity as the initial hype would have had you believe, but in our view, it is not as hopeless as the negative publicity of the past year suggests. A review of the performance of MVNOs over the past five years yields a number of salient lessons on the business model, and provides enough material to establish what works—and what does not appear to work.
MVNO models can be made to work, and there are MVNOs with proven track records of success, according to our new research study Rethinking MVNO and MVNE Economics: the Future of Mobile Virtual Models . The report provides an in-depth examination of the economic factors behind the failure of many MVNO models and the successes of others. The picture is not all negative: the gloom and doom predictions regarding the MVNO market fail to acknowledge that the global MVNO subscriber base grew by 24% in 2006, to reach 84m users. There are profitable MVNO operations, from Virgin Mobile and Tesco Mobile in the UK to TracFone in the US. Moreover, interest in becoming an MVNO has not faded away by any means; the list of the companies exploring the MVNO opportunity continues to include big names from a range of markets.
Building on an extensive analysis of MVNO profitability and overall performance to date, Rethinking MVNO and MVNE Economics: the Future of Mobile Virtual Models outlines what works and what does not work with today’s MVNO business models. The report deconstructs MVNO economics, provides insights into the MNO business case for hosting MVNOs, and reviews the MVNE model and its role in making the MVNO model work.
Key questions answered
- What are the economic realities of the MVNO business? How do the key margin indicators compare among the prepaid MVNOs, cost-heavy MVNOs, and traditional mobile players?
- Can MVNOs make money? What have been the key drivers of profitability—or lack thereof?
- Does the MVNO model make sense for content providers?
- How should the MVNO model evolve to be successful?
- What is the business case for an MNO to host MVNOs? How has the entry of MVNOs affected mobile markets?
- What are the ingredients for successful MNO-MVNO partnerships? How have MNOs prevented cannibalization of their revenues after partnering with MVNOs?
- Do MVNOs need MVNEs? How is the MVNE role evolving to make the MVNO model work?
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