MVNOs to reach 270 million subscriptions by 2018 – but not all MVNOs will survive

Don’t be one of the 25% of MVNOs that fail – be different and target a growth opportunity with Gintel’s help.

The worldwide MVNO subscriber base is forecast to reach 270 million by 2018, according to Informa Telecoms and Media, as more MVNOs are launched in more countries and on more networks. While such growth is extremely promising and should create optimism in the market, it’s also going to increase competition and heighten the risk of failure. Informa points out that, historically, 25% of MVNOs have failed.

It’s clear that for an MVNO to succeed, it has to offer something different. As many have discovered, in a crowded or saturated market, it’s difficult to succeed if price is the only differentiator. Inevitably, this leads to a downward spiral in which only the fittest can survive. Adaptability to customer and market needs is only part of the picture.

If that’s the case, how can a new entrant succeed in the face of competition from established brands? The answer is through differentiation. Differentiation means being distinctive from the competition and this can be achieved by identifying customer needs that are not being met by others, or by delivering a specific set of services better than your peers.

There are many ways in which an MVNO can differentiate but in our opinion, the most successful recipe for success can be found in identifying a market opportunity that:

  • Is relatively untapped or poorly addressed
  • Offers strong growth potential

Of course, there may be many such opportunities, but a general consumer proposition based solely on price is unlikely to be successful. But what about business customers? Larger service providers have typically neglected business customers, particularly those in smaller enterprises. An MVNO can make a difference, offering a dedicated B2B service that caters for the needs of specific groups of business users for whom price is not the only consideration.

Of course, each country is different, but it’s also clear that the business market represents a significant untapped opportunity, with millions of businesses active that do not attract the attention of larger players. We’ve seen this, time and time again – a focused, nimble player can capture significant market share and deliver sustained growth to its investors through a focus on the needs of business customers. Why not find out how we can help you deliver a compelling service that will enable you to achieve differentiation and thrive in an increasingly competitive environment?

Service differentiation, Enterprise Opportunity, SME Opportunity, MVNO, MVNO revenue growth

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