Monday, August 02, 2010

MVNO - Global subscribers forecase to reach 189 million by 2015, attracting new players as MVNOs

[prweb] In what was introduced as a reseller model in Europe, mobile virtual network operator (MVNO) has now evolved into a flourishing business strategy across the globe. Driven by the advancements in mobile technology, superior bandwidth and greater number of applications, which increase the usage of wireless technology, the MVNO business model attracts several new players cutting across various industry segments such as retailers, utilities, entertainment companies, fixed incumbents, and ISPs.

MVNOs have transformed over the years from being just a simple first generation resellers to second generation full MVNOs, capable of offering not just discount voice only services but also a comprehensive service mix to consumers. The mobile communications industry’s shift away from voice centric business to data centric business has set a perfect platform for MVNOs to prosper, given their focus on niche market segments and expertise in providing exciting content such as games and music. Despite the robust development of the market over the last few years, MVNOs have had their own share of challenges as well. More recently, the market suffered a huge set back with few high-profile MVNO failures, that include Disney, Mobile ESPN, Amp'd Mobile and Helio, which raised many a question on the very feasibility of the MVNO business model.

However, increased acceptance of MVNO business model in emerging markets such as Eastern Europe, and Latin America is lending traction to the global MVNO market. Eastern Europe, especially, is expected to turbo charge growth in MVNO subscriptions over the next few years as regulators seek to arouse further competition by awarding new MVNO licenses in countries such as, Bulgaria, Romania and Croatia.

A key MVNO strategy that promises to generate substantial opportunities for the market in the next few years is the dedicated focus on niche segments such as, music services, data services, health services, and luxury services, among others. Targeting lesser sought after consumer clusters such as youth, foreign workers, immigrants, ethnic demographic clusters, and tourists is expected to bring in new revenue generating opportunities for MVNOs. While first generation MVNOs simply offered voice only services at discount prices, the innovative next-generation MVNOs are fast focusing on offering more refined services that bring enhanced user experience and value by offering bespoke content, and are thereby creating significant value by taking their services into new market segments.

As stated in the new market research report, Europe continues to remain the largest regional market for MVNOs. Latin America on the other hand, displays the most robust outlook for the next few years, mirroring the fastest CAGR over the analysis period 2006-2015.

Key players in this marketplace include 7-Eleven Speak Out Wireless, AirVoice Wireless, Friendi Mobile, Japan Communications Inc., TracFone Wireless Inc. and Virgin Mobile, among others.

The report titled “Mobile Virtual Network Operators: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a review of noteworthy market trends, growth drivers and challenges. The report in addition also enumerates service launches and other strategic industry activities. The single segment report offers market estimates and projections for MVNO Subscribers (In Million) across regional market verticals such as, North America, Europe, Asia Pacific, Latin America, and Rest of World.

Global Subscribers for MVNO Services to Reach 188.83 Million by 2015, According to New Report by Global Industry Analysts, Inc

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