Missed Opportunities in the MVNO Market
Providers Apathetic on Content, Weak on Differentiation
Sydney, AUSTRALIA — September 12, 2006: New research into the business models followed by 66 Australian MVNOs (mobile virtual network operators) suggests that most providers see this style of service as a sideline rather than the key to their success.
The research, presented to the IQPC MVNO Summit on 30 August 2006, was conducted by Sydney-based telecommunications research consulting company Market Clarity.
Research carried out for the presentation found that of 66 companies offering mobile services under the MVNO model in Australia, only 14 rely solely on their mobile business. Fixed line and Internet services are offered by most MVNOs, with VoIP offerings also having a significant presence in the market.
“It’s clear that MVNO-based mobile services are seen as another string to the bow of companies already offering retail telecommunications services, rather than a viable business in their own right,” Evans said.
“Perhaps because telecommunications retailers are not giving their MVNO services high priority, we also saw relatively little product differentiation between providers. Most companies offer the same mix of services, with very little segmentation of the consumer market.
“Only a handful of MVNOs have constructed brands with a clear demographic target in mind,” Evans said.
The research found that Vodafone is leading the channel market, with the largest number of MVNOs choosing that carrier as the basis for their services. Hutchison has almost no presence in the MVNO market.
The Australian MVNO Market is a 40-page presentation style report which includes 20 figures based on original Market Clarity research, and is available for purchase from Market Clarity for $995+GST.
About Market Clarity
Market Clarity is an award-winning telecommunications analyst firm founded in January 2006 by leading Australian telecommunications researcher and strategic consultant, Shara Evans. The firm covers all aspects of telecommunications, including traditional and converged services and technologies. Market Clarity’s extensive databases of technical and market information cover a wide range of facts and figures on the technologies and services that are shaping the Australian telecommunications market. Market Clarity’s GIS tools and research databases enable the correlation and presentation of highly complex information in an intuitive geographic (map) format.
Market Clarity’s insights are derived from a deep understanding of technology, coupled with comprehensive research, which examines each segment of a service’s value chain as well as underlying population demographics. By leveraging its engineering knowledge with an ongoing primary research program, Market Clarity provides insight, intelligence and advice on all aspects of the Australian telecommunications market including traditional, converged and future technologies. Market Clarity’s unparalleled market knowledge and research databases are brought to all consulting engagements.
Market Clarity’s contribution to telecommunications in Australia was recognised by the telecommunications industry’s peak body, the Communications Alliance, which awarded the company its 2007 ACOMMS award for Services to the Industry – Professional Services.
Market Clarity is headquartered in Sydney, Australia.