Europe - the success of the no-frills mobile model

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Last updated: 24 Nov 2010 Update History

Report Status: Archived

Report Pages: 6

Telecom Investment research Note

Synopsis

No-frills Mobile Virtual Network Operators (MVNOs) have become a permanent feature of Europe’s mobile industry. MVNOs buy network capacity from network operators (MNOs) and then offer their own branded mobile subscriptions and value-added services. A niche market has developed with 3G networks, which enable MVNOs to offer subscribers data multimedia services in addition to the existing low-cost traditional voice and SMS services. The impact of MVNOs in each country is variable, as are their business models, but their share of the mobile market both in terms of revenue and subscribers is growing inexorably. To capitalise on the no frills sector, a number of MNOs have either launched their own brands or have bought out existing operators, thus allowing them to tap into an important and growing demographic while still endeavouring to migrate customers to higher-ARPU plans.

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