Feeds

No-frills MVNOs to steal market share

...say analysts

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

No-frills mobile operators such as easyMobile could snatch up to 20 per cent of Europe's market share over the next five years, according to crystal ball gazers at Strategy Analytics.

They reckon these low-cost MVNOs (mobile virtual network operators) could really "shake up the stagnant European prepaid market" by offering competitive no-frills services.

Some six in ten mobile users in Europe opt for prepaid or pay-as-you-go (PAYG) services and analysts reckon that this group could be swayed with cheap calls, according to its report EasyMobile: Trends in Low-Cost Service Provision in Europe.

A fortnight ago, for example, E-Plus - the number three player in Germany's mobile market and a subsidiary of KPN - unveiled its no-frills outfit Simyo. And boffin reckons that more and more operators will launch their own discount services in the face of increased competition.

Said Sara Harris, a senior analyst at Strategy Analytics: "Even though prepaid was the engine that accelerated mobile growth in Europe the majority of prepaid offers today are not only expensive, but they ignore customer demands for drastically lower-cost pricing.

"Thus, low-cost MVNOs have been able to storm into the market appropriating customers for whom price is king."

A price war in the UK has been sparked following the launch of easyMobile - the latest business from no-frills entrepreneur Stelios Haji-Ioannou.

In April easyMobile's boss Frank Rasmussen said that UK punters are treated badly compared with other mobile users in Europe and that operators have had things "very cosy".

"This battle has only just begun," he said, "and I can guarantee it's going to be both long and costly for the existing British players. The impact of easyMobile's entry into the market will be profound and with customers as the big winners." ®

Related stories

easyMobile.com takes aim at easymobile
Easymobile denies it's a 'flop'
T-Mobile to cut tariffs - report
Fresh undercuts discounted easyMobile tariffs
Virgin Mobile slags off easyMobile...
easyMobile launches - finally
CPW halves cost of mobile phone calls
Orange sues Stelios for 'passing off'

Secure remote control for conventional and virtual desktops

More from The Register

next story
Of COURSE Stephen Elop's to blame for Nokia woes, says author
'Google did have some unique propositions for Nokia'
FCC, Google cast eye over millimetre wireless
The smaller the wave, the bigger 5G's chances of success
It's even GRIMMER up North after MEGA SKY BROADBAND OUTAGE
By 'eck! Eccles cake production thrown into jeopardy
Mobile coverage on trains really is pants
You thought it was just *insert your provider here*, but now we have numbers
Don't mess with Texas ('cos it's getting Google Fiber and you're not)
A bit late, but company says 1Gbps Austin network almost ready to compete with AT&T
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.