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SUMMARY
Overview
The MVNO business model has taken off in developed markets. The U.S. has more
than 40 existing and planned MVNOs and service providers; Europe has more than
100, but emerging markets have remained largely immune to the MVNO hype. This
new report from Pyramid Research analyzes the potential of the MVNO business
model in emerging markets, and how it must be adapted to fit the demanding
needs of developing countries. MVNOs in Emerging Markets" identifies the
strategies necessary for success, discusses complicated wholesale agreements,
lays down the framework for emerging market MVNO and highlights the 'sweet
spots' and 'fool's gold' markets worldwide. Included are suitability analysis
for the Middle East, as well as business case and sensitivity analysis for
hypothetical MVNO launches in Nigeria and India.
Key Questions Answered:
Can the MVNO model work in emerging markets? What are the key criteria of
success for an emerging market MVNO? Should an emerging market MVNO compete on
price? Can an MVNO survive in a low-ARPU market? Given income distribution
levels and the importance of the high-end consumer base and the business
market for existing operators, how effective would strong segmentation be? Are
MVNOs good-or bad for emerging markets network operators? Should existing
operators open up their networks? Is there room for an MVNO in the extremely
competitive Indian market? Why do we believe an MVNO can succeed in Nigeria?
Target Audience
Aspiring MVNOs
This report will help any reader who is contemplating an MVNO offering in an
emerging market to formulate a business plan. Through case studies and market
suitability analysis, this report creates guidelines for adapting the MVNO
business model to take advantage of opportunities in developing markets
worldwide.
Mobile Operators
This report will help mobile operators assess a strategic partnership with an
MVNO, which operators could use to target untapped segments and generate new
revenue streams. In addition, it targets strategies for MNOs to offer new,
innovative service offerings.
Vendors
This report will help vendors assess the needs and strategies of the emerging
market MVNO, which vendors could use to drive partnerships and product
development.
TABLE OF CONTENTS
Section 1: Executive Summary
Section 2: Behind the MVNO Craze
- 2.1 Drivers of the MVNO Model
- 2.2 Identification of MVNO Friendly Countries
Section 3: Can MVNOs Make it in Developing Markets?
- 3.1 Many Emerging Markets are Still Largely Underpenetrated
- 3.2 Segmentation Opportunities Exist
- 3.3 Emerging Markets are Competitive
- 3.4 Many Markets could Use a Burst of Innovation
- 3.5 MVNOs Already Exist in Emerging Markets-at Least Conceptually
Section 4: Keys to MVNO Success In Emerging Markets
- 4.1 The ARPU Challenge
- 4.2 The MNO Challenge: Finding the Weakest Link
- 4.3 The Regulatory Framework Challenge
- 4.4 The Capacity Challenge
- 4.5 Which MVNO Model for Emerging Markets?
Section 5: Making the Business Case for MVNOs in Emerging Markets
- 5.1 All Opportunities are Not Equal: Making the Case
- for MVNOs in Emerging Markets
- 5.2 Making the Case for a Nigerian MVNO
- 5.2.1 Why Nigeria?
- 5.2.2 The Model and the Target Market
- 5.2.3 Assumptions
- 5.2.4 Base Case Results
- 5.3 Making the Case for an Indian MVNO
- 5.3.1 Why India?
- 5.3.2 The Model and the Target Market
- 5.3.3 Assumptions
- 5.3.4 Base Case Results
- 5.4 Making the Case for a Mexican MVNO
List of Exhibits
- Exhibit 1: Evolution of MVNOs in Europe and the United States
- Exhibit 2: Mobile Subscriber CAGR, 2004-2009 6
- Exhibit 3: Pyramid Research's Ranking of the Most "MVNOfriendly" Markets
- Exhibit 4: Addressable Market With and Without Low-cost MVNOs
- Exhibit 5: Global Competitiveness Chart, Based on Market Share of Largest
Player
- Exhibit 6: Sub-branding Examples in Emerging Markets
- Exhibit 7: EBITDA Margin vs. ARPU for Selected Mobile Operators
- Exhibit 8: NPV of Prepaid Subscriber: MNO vs. MVNO
- Exhibit 9: MVNO Opportunities for Cost-cutting
- Exhibit 10: The Network Operator's Perspective
- Exhibit 11: MNO Host Market Share
- Exhibit 12: Potential MVNO Hosts in Selected Markets
- Exhibit 13: MVNO Models and Wholesale Issues
- Exhibit 14: MVNO Implementation Models
- Exhibit 15: MVNO Suitability Quadrant
- Exhibit 16: Nigeria Subscriber Base and Penetration
- Exhibit 17: Nigeria Call Center Users and Subscriptions
- Exhibit 18: Nigeria MVNO Base Case Results
- Exhibit 19: India Subscriber Base and Penetration
- Exhibit 20: India MVNO Base Case #1
- Exhibit 21: India MVNO Base Case #2
- Exhibit 22: India MVNO Base Case #3
- Exhibit 23: Mexico Penetration Rates by Age Group
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