MVNOs and MVNEs: Analyzing the Viability of Virtual Mobile Players

Pyramid Research

- Pub ID: PYR1224156

Are MVNOs profitable? Is consolidation inevitable? The mobile virtual network operator (MVNO) model has gained in popularity over the past two to three years; more ventures have followed in Virgin’s path (the model’s pioneer), with the MVNO model going through a number of iterations. As the MVNO market continues to expand, a new category of players, MVNEs - mobile virtual network enablers - has emerged, riding on the coattails of strong MVNO growth.

Today, concerns of overcapacity and potential consolidation are emerging, both in the MVNO and MVNE spaces. In a bid to ascertain whether such concerns are justified, this report seeks to answer two fundamental questions: are MVNOs making money, and are MVNEs here to stay? In answering the first question, the report uncovers an MVNO segment whose margins have more in common with those of retail and media players than it does with traditional mobile margins. A number of players are also turning the traditional MVNO model on its head, from a predominantly cost-based story to a full-fledged revenue story. On the MVNE front, the report maps out the MVNE value chain, identifies key player value proposition, and provides an in-depth analysis of factors that will determine the future of the MVNE model, from evolving MVNO demand in a 3G world to emerging competition from traditional telco suppliers.

MVNOs and MVNEs: Analyzing the viability of Virtual Mobile Players answers the following questions:

What are the key margin indicators for MVNOs, and how do they compare to those of traditional mobile players (EBITDA, Gross margins, etc.)

What is the profitability potential of cost-heavy MVNOs, such as ESPN, Helio and Amp’d?

MVNO profitability: are existing MVNOs making money? What have been the key drivers of profitability (or lack thereof?)

Do MVNOs need MVNEs?

How do the world’s main MVNEs compare to each other (MVNE map)?

What are the economics for MVNEs?

Is the MVNE model here to stay?

The report will also include case studies of key MVNEs, including Visage Mobile, Telcordia and mPortal, as well as in-depth reviews of such MVNOs as Virgin, Tracfone and Telmore.

Additional Information

Key Questions Answered:

What are the key cost and revenue indicators for MVNOs, and how do they compare to those of traditional mobile players (CPGA, CCPU, ARPU, Churn, etc.)?

What are the key margin indicators for MVNOs, and how do they compare to those of traditional mobile players (EBITDA, Gross margins, etc.)

What is the profitability potential of cost-heavy MVNOs, such as ESPN, Helio and Amp’d? Are some markets more profitable than the others (e.g. US vs Europe?)

What is the overall size of the global MVNO opportunity?

What is the MVNO market share distributed by segment (prepaid vs. high-end vs. data-focused players, etc.)? MVNO profitability: are existing MVNOs making money? What have been the key drivers of profitability (or lack thereof?)

What is the profitability potential of high-cost MVNOs? Low-cost MVNOs?

What is an MVNE?

Do MVNOs need MVNEs?

How do the world’s main MVNEs compare to each other (MVNE map)?

What are the economics for MVNEs?

Is the MVNE model here to stay?

Is the MVNE value proposition sustainable in a 3G world?

Are infrastructure manufacturers better positioned for an MVNE play?

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