Not All MVNOs Will Die Profits Are Still Possible Says New Report

The negative reports about the MVNO market fail to acknowledge that the global MVNO subscriber base grew by 24% in 2006, to reach 84m users notes.

According to Research and Markets MVNO models can be made to work, and there are MVNOs with proven track records of success, according to our their research study Rethinking MVNO and MVNE Economics. 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.

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

-Research and Markets has announced the addition of “Rethinking MVNO and MVNE Economics: The Future of Mobile Virtual Models” from Pyramid Research to their offering.

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?

Target audience

Mobile operators: Quantify the long-term revenue potential of the wholesale market to support decisions whether or not to work with MVNOs and MVNEs. The MVNO profitability calculations help you benchmark your performance against MVNOs.

MVNOs: Develop your strategy using our objective long-term analysis of the MVNO market. Benchmark your costs and profitability against industry averages and other key players. Determine whether MVNEs will strengthen your service and increase your profit based on our analysis.

MVNEs: Understand the long-term market potential and MVNO perception of MVNEs. Determine an optimal strategy to attract MVNOs (end-to-end solutions vs. specific expertise). Assess key competitors and benchmark your positioning against them.

Vendors: Assess the MVNE opportunity for a long-term strategic entry (partnerships or acquisitions); determine if MVNEs are competitors or complementary, and if there is an opportunity beyond application hosting. Quantify the long-term equipment and service opportunity in the MVNO space based on revenue, profitability, and subscriber forecasts.

Financial institutions: Assess the viability of MVNOs and MVNEs to support a decision on whether to finance MVNOs and MVNEs. The MVNO profitability calculations (NPV, CPGA, CCPU, and ARPU) help you benchmark existing and proposed MVNO costs and profitability.

Companies Mentioned:

* 7-Eleven
* Action Engine
* AH Mobiel
* Alcatel-Lucent
* Amp'd Mobile
* Aspider Mobile
* AT&T
* Base
* Blyk
* boo.com
* Boost Mobile
* Bouygues Télécom
* Brightpoint
* CBB Mobil
* China Motion
* China Trident
* Comcast
* Comfour
* Convergys
* DBS Communications
* debitel
* DexCom
* Disney Mobile
* EarthLink
* easyMobile
* E-Plus
* Faith Communications
* Firefly Mobile
* First Hop
* Fresh Mobile
* Greenfield Capital Partners
* Helio
* Heyah
* IDT Mobile
* InPhonic
* KPN
* Lebara Mobile
* Lycamobile
* M6 Mobile
* M-Budget
* MegaFon
* Migros
* Mobile ESPN
* mPortal
* Multikabel
* Nokia
* Nokia Siemens O2
* Orange
* Pets.com
* Phone House, The
* Piltel
* Primus Wireless
* Qwest Wireless
* Rabo Mobiel
* Scarlet Telecom
* SK Telecom
* Sonofon
* Sony2Connect
* SpinBox
* Sprint Nextel
* SurfKitchen
* Swisscom
* TalkLine Nederland
* Tchibo Mobilfunk
* TDC
* TDC Mobil
* Tele2
* Telenor
* Telfort Netherlands
* Telmore
* Telus
* Ten Mobile
* Tesco
* T-Mobile Germany
* T-Mobile UK
* T-Mobile USA
* TracFone
* Transatel
* Universal Mobile
* UPC
* UPC Mobile
* Verizon Wireless
* Versent Mobile
* Virgin Mobile UK
* Virgin Mobile USA
* Visage Mobile
* Voce
* Vodafone Australia
* Vodafone UK
* Webvan.com
* Xero Mobile
* Ztar Mobile

For more information visit (http://www.researchandmarkets.com/reportinfo.asp?report_id=567139&t)