MVNOs give mobile services low priority

Australian Mobile Virtual Network Operators (MVNOs) increasingly view mobile services as sideline businesses according to the latest research from Market Clarity.

According to research by Market Clarity only 14 MVNOs rely solely on their mobile business. Fixed line and Internet services are offered by most MVNOs, with VoIP offerings also having a significant presence in the market.

Shara Evans CEO Market Clarity said it was clear that MVNO-based mobile services are seen as another string to the bow of companies already offering retail telco services, rather than a viable business in their own right.

“Perhaps because telco retailers are not giving their MVNO services high priority, we also saw relatively little product differentiation between providers. Most companies offer the same mix of services, with very little segmentation of the consumer market,” she said.

“Only a handful of MVNOs have constructed brands with a clear demographic target in mind,” Evans said.

As they do not own their own licensed frequency spectrums, MVNOs such as Virgin Mobile resell the services of mobile phone operators under their own branding.

The research also found that Vodafone is currently lead the channel market, with the largest number of MVNOs choosing that carrier as the basis for their services. Hutchison has almost no presence in the MVNO market.