Feeds

No-frills MVNOs to steal market share

...say analysts

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

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'

Build a business case: developing custom apps

More from The Register

next story
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
Trying to sell your house? It'd better have KILLER mobile coverage
More NB than transport links to next-gen buyers - study
iWallet: No BONKING PLEASE, we're Apple
BLE-ding iPhones, not NFC bonkers, will drive trend - marketeers
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Speak your brains on SIGNAL-FREE mobile comms firm here
Is goTenna tech a goer? Time to grill CEO, CTO
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.