Feeds

No-frills MVNOs to steal market share

...say analysts

  • alert
  • submit to reddit

Remote control for virtualized desktops

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
Mighty Blighty broadbanders beg: Let us lay cable in BT's, er, ducts
Complain to Ofcom that telco has 'effective monopoly'
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Broadband sellers in the UK are UP TO no good, says Which?
Speedy network claims only apply to 10% of customers
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
Soz, web devs: Google snatches its Wallet off the table
Killing off web service in 3 months... but app-happy bonkers are fine
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
The total economic impact of Druva inSync
Examining the ROI enterprises may realize by implementing inSync, as they look to improve backup and recovery of endpoint data in a cost-effective manner.
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.