Feeds

No-frills MVNOs to steal market share

...say analysts

  • alert
  • submit to reddit

5 things you didn’t know about cloud backup

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'

The essential guide to IT transformation

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
Time Warner Cable customers SQUEAL as US network goes offline
A rude awakening: North Americans greeted with outage drama
We need less U.S. in our WWW – Euro digital chief Steelie Neelie
EC moves to shift status quo at Internet Governance Forum
EE fails to apologise for HUGE T-Mobile outage that hit Brits on Friday
Customer: 'Please change your name to occasionally somewhere'
EE plonks 4G in UK Prime Minister's backyard
OK, his constituency. Brace yourself for EXTRA #selfies
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?