3G to provide opportunities for MVNOs

[3g-g]

Peolpe are still touting it, suggesting that MVNOs will be what takes up that UMTS capacity. I just can't see the operators allowing it, well in the UK anyway.

Mobile virtual network operator (MVNO) activity in Western Europe will significantly increase over the next few years, according to a new study by IDC. IDC believes that the MVNO subscriber base
in Western Europe will grow from more than 13 million in 2005, to more than 47 million in 2009.

"There will be many opportunities for companies, not only those currently operating in wireless (or telecoms for that matter) but for those in other industries," said Paolo Pescatore, EMEA research manager, Consumer European Wireless and Mobile Communications. "Opportunities are not only limited to players seeking to offer mobile services to consumers and/or corporate clients, but are also available to those enabling MVNOs." In addition,
Pescatore believes that 3G offers MVNOs an exciting opportunity to offer users a rich multimedia experience. While many of the MVNOs today are offering low-cost pricing (voice and SMS), 3G will allow them to focus offerings equally on data.

Some of the opportunities that IDC has identified for potential MVNOs include:
· Focus on offering convergence
· Focus on a pan-European offering allowing for low-price calling while
roaming abroad
· Focus on 3G and in particular data such as mobile music or mobile sports
· Focus an offering for enterprises, whether based on voice or data, that
could potentially be broadened to include roaming as well

For any new MVNO, it is important to focus on niche markets and get to market sooner rather than later. This will certainly provide the company with a competitive advantage and allow it to build its brand and raise awareness in the marketplace.

IDC believes that the market for MVNOs opens up the space for established and new players such as billing and customer care companies to sell into.

Billing and customer care is just one opportunity, and there are also
opportunities for IT companies and those that specialize in data. This in turn will allow MVNOs to personalize their data offerings, which can increase usage and reduce churn.

Original.