| NOTAS: | "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." |
