By Gemma Simpson, 9 February 2007 14:45
NEWS
Mobile virtual network operators (MVNOs) and incumbent operators need to work together to beef up their mobile entertainment offerings to reach wider audiences.
MVNOs with a strong entertainment brand will be "essential partners" to get network operators into the niche segments they would otherwise be unable to reach by themselves, according to analyst house Juniper Research.
Inter-operator co-operation has already begun, between Verizon and Mobile ESPN - one of the highest profile content-focused MVNOs - which is back in business on the Verizon network after closing down last year for failing to attract a significant number of subscribers.
Cheat Sheets
♦ Mobile location-based services
♦ FMC
♦ 3G
Juniper's report predicts consumers of mobile entertainment services will be more demanding in future - and if MVNOs and network operators are to co-exist they need to combine forces and become more user-focused and market-led, rather than product and technology-driven.
But co-operation may not be on the cards as MVNOs have had a "largely negative impact" on network operators by taking 25 per cent of the market share in mature markets, said the analyst.
Despite MVNOs undergoing such "rapid changes" over the next few years, Juniper predicts the global MVNO revenue will increase from $15.4bn in 2006 to $67.2bn by 2012.
According to Juniper, voice-only MVNOs will struggle to stay profitable as demand for no-frills voice services falls, with only those with a strong retail brand and existing customer base set to survive over the next few years.
MVNOs in the UK have had a chequered past. EasyMobile, Stelios' no-frills MVNO, shut up shop last year and Disney ditched plans to launch an MVNO in the UK.
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1. Lee Parkinson
Why do these companies not look to the future and challenge the banks and offer a mobile based banking system?
I know of such a one which has yet to launch and will continue to struggle as mobile networks won't move forward and continue to battle against each other!
We need cheap tansactions in real-time!! done via your mobile.
I notice the founder of this company is challenging Apple regarding the iphone I wish him all the best but it seems to me charging people a monthly fee is always the quickest way of closing a music based project and as I say the company above I spoke about specialise in micro payments this surely is an option in the music world.