MVNOs market to become more and more lifestyle-oriented


Stuttgart, Germany - 7th July, 2005 - According to an InfoCom's research regarding MVNOs (Mobile Virtual Network Operators), companies that have come forward to venture into the MVNO business have increasignly little or no experience in mobile communications. These companies are often retailers who add mobile services in their product range. These new entrants already have a customer base – and knowledge on its consumption patterns – and their competences rely on their branding, marketing and distribution expertise, which can address specific niche areas. Such MVNOs have started to retail mobile services as a commodity, similarly to other non-telecom products, riding on the popularity of mobile services.

The fact that mobile services can be retailed in the same way as other commodity products has changed the competition landscape, where traditional providers of telecom services compete in a wide, diversified market, together with any kind of retailer. This trend is making it more difficult to maintain an overview of competitive offers and retain customers.

This market outlook comes from an InfoCom's study on “alternative” mobile service markets, i.e. an analysis of non-traditional MVNOs business and perspectives, especially as regards the so-called “lifestyle” MVNOs, which tailor their offer exactly to a specific target segment. An example of such a strategy is the UK MVNO ExtremeMob, an extreme-sports-dedicated mobile provider, which has based its strategy and branding on a close association with a “highly aspirational” lifestyle.


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InfoCom is a market research and consultancy company with over 15 years experience providing strategic planning assistance to stakeholders in the telecommunications and multimedia industry. InfoCom’s independent and fact-based perspective on the telecommunications and multimedia environment contributes to decision makers understanding of market dynamics, trends and opportunities in the key markets.