MVNOs bullish about growth – despite fierce market competition in Europe

MVNOs bullish about growth – despite fierce market competition in Europe

According to GSMA figures, in 2014 the European mobile market had the highest rate of subscriber penetration (78.9%) of any region in the world, but experienced less than 1% subscriber growth. The continent contains a mixture of very advanced and highly penetrated markets and markets where there is much lower penetration and technical maturity. However, at the same time, it challenges our preconceptions since emerging European markets, such as Russia or Kazakhstan, now have very high penetration rates.

It’s a jungle out there

Fierce competition, regulatory action (for example, the EU’s action to mandate lower roaming charges), market saturation and macro-economic factors mean that Europe is a tough market to compete in, and the only region in the world where mobile service revenues are declining. Yet, despite all of this, not everyone thinks that Europe is lacking growth potential. In fact, MVNOs in Europe are pretty bullish about their future and expect strong growth in the coming year.

Growth prospects

According to recent research on the MVNO market, conducted by Telesperience on behalf of Amdocs, most MVNOs worldwide foresee strong growth in the next two years. On average, those sampled said they expected business growth of 45% between mid-2015 and mid-2017 (translating to annual growth of over 22%). Mobile Virtual Network Operators (MVNOs) in Europe were no less bullish than those from other regions – forecasting their growth over this period at 44.5% on average, or 22% per annum.

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Success through understanding

Identifying niches and building increased business value in them, by meeting the needs of the target group more precisely, is something that MVNOs are well placed to do. However, doing so successfully requires a deep understanding of the customer sector an MVNO is operating in, combined with the ability to build products, offers and a customer experience that really resonates with the target audience.

To find out more about the MVNO market and how MVNOs can utilize key growth strategies, click here to access our full 1-hour webinar recording to listen to the full 1-hour webinar recording.

Success through understanding Identifying niches and building increased business value in them, by meeting the needs of the target group more precisely, is something that MVNOs are well placed to do. However, doing so successfully requires a deep understanding of the customer sector an MVNO is operating in, combined with the ability to build products, offers and a customer experience that really resonates with the target audience. To find out more about the MVNO market and how MVNOs can utilize key growth strategies, click here to access our full 1-hour webinar recording to listen to the full 1-hour webinar recording.