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MVNO Marketing EffectivenessProduct Type: Market Research ReportPublished by: Global Advertising Strategies, Inc. Published: April 2005 Product Code: R445-0019 Description The number of competitors in the wireless industry is swelling just as ad budgets are taking a dive. This
dynamic is caused by changes in the industry - M&A among tier one carriers and Mobile Virtual Network
Operators (MVNOs) fortifying the ranks of tier two players.
MVNOs are a European phenomenon, introduced in the U.S. first by players servicing ethnic communities. Youths as a target demographic gave MVNOs a high profile, in parts thanks to marketing done by Virgin Mobile. Currently there are over 22 MVNOs in the U.S. Many industry drivers contributed to MVNO development, the key one being desire by larger wireless carriers to get revenues by selling wholesale access to their networks. Understandably from where MVNOs are coming from in the U.S., one of the key drivers for their proliferation was competitive differentiator in the arena of international long distance. This doesn’t mean however that top international calling destinations automatically translate into ethnic niches that hold the most MVNO promise - other factors like global politics are at play here. MVNO marketing represents a grab bag of various attract tactics, with an occasional co-branding strategy thrown in. MVNOs target niche markets by definition. Their marketing strategies include traditional channels as well as wireless industry specific, such as kiosks. MVNOs greatest strength is in being able to identify and address audiences in need of their services. Their greatest weakness is that they lack scale as competitors when compared to large wireless carriers. New entrants into the market, MVNOs are typically first to compete in their specific niche, and thus have the edge. Going forward, executing on this opportunity will be like hitting a moving target, because while there will be more MVNOs while the number of wholesalers will decrease because of tier one consolidation. MVNOs face an increasing threat of competition from new MVNOs and large wireless carriers. Table of Contents I EXECUTIVE SUMMARY, DEFINITION AND METHODOLOGY I KEY FINDINGS II EXECUTIVE SUMMARY III METHODOLOGY 1. MVNOS AND WIRELESS SERVICES INDUSTRY 1.1 INTRODUCTION 1.2 EVOLUTION OF MVNO INDUSTRY Figure 1: MVNOs and their suppliers 1.3 KEY INDUSTRY DRIVERS 1.3.1 International call volume and mobile carriers Figure 2: Top International call destinations Figure 3: U.S. Ethnic Groups Corresponding to Key International Destinations 1.4 APPROACHES TO MVNO MARKETING 1.4.1 Marketing strategies 1.4.2 Marketing audience 1.4.3 Marketing medium 2. MVNO PROVIDER OPPORTUNITIES AND CHALLENGES 2.1 STRENGTHS AND WEAKNESSES OF MVNO PROVIDERS 2.2 OPPORTUNITIES FOR MVNO PROVIDERS 2.3 OPPORTUNITIES FOR WIRELESS CARRIERS 2.4 MARKET DIRECTIONS 2.4.1 The next six months 2.4.2 Beyond six months 2.5 THREATS 2.5.1 Perceived threats for MVNO providers 2.5.2 Perceived threats for wireless carriers 2.6 KEY SALES STARTEGIES Figure 4: Plan Comparison of Major MVNO Players 2.7 IMPLICATIONS FOR MVNO PROVIEDERS 2.8 IMPLICATIONS FOR BIG FIVE WIRELESS CARRIERS 3. COMPETITIVE ASSESSMENTS OF MAJOR MVNO PROVIDERS 3.1 9278 Mobile (low cost international ld) 3.1.1 Context 3.1.2 Competition 3.1.3 Offering 3.1.4 Strategy 3.2 7-11 (core brand enhancement) 3.2.1 Context 3.2.2 Competition 3.2.3 Offering 3.2.4 Strategy 3.3 Tracfone (low credit customers) 3.3.1 Context 3.3.2 Competition 3.3.3 Offering 3.3.4 Strategy 3.4 Virgin (youth market) 3.4.1 Context 3.4.2 Competition 3.4.3 Offering 3.4.4 Strategy 3.5 Qwest (traditional telecom service enhancement) 3.5.1 Context 3.5.2 Competition 3.5.3 Offering 3.5.4 Strategy 4. COMPETITIVE ASSESSMENTS OF MAJOR WIRELESS CARRIES (MVNO) 4.1 Cingular 4.1.1 Context 4.1.2 Competition 4.1.3 Offering 4.1.4 Strategy 4.2 Verizon Wireless 4.2.1 Context 4.2.2 Competition 4.2.3 Offering 4.2.4 Strategy 4.3 Sprint PCS 4.3.1 Context 4.3.2 Competition 4.3.3 Offering 4.3.4 Strategy 4.4 Nextel 4.4.1 Context 4.4.2 Competition 4.4.3 Offering 4.4.4 Strategy 4.5 T-Mobile 4.5.1 Context 4.5.2 Competition 4.5.3 Offering 4.5.4 Strategy 5. MARKETING CASE STUDY 4.5 SK EARTHLINK 4.5.1 Targeted audience 4.5.2 Marketing tactics 4.5.3 Key advertising samples DISCLAIMER |
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