Tough times ahead for US MVNOs

Publication Date	January 2008
Publisher	Ovum
Product Type	Report
Pages	16
ISBN Number	not applicable
Product Code	OVM00464

Price

£700.00
approximately: $1,375 | €890

PDF

PRINT £750 ($1,473 | €953)

Order above formats by FAX

Summary

The high-profile failures of mobile virtual network operators (MVNOs) Amp'd Mobile, ESPN Mobile and Disney Mobile demonstrate the difficulty of competing in the US mobile market. We expect more MVNOs to exit the market in 2008. Despite this, we believe the MVNO opportunity exists, especially in a vast market like the US, but it will be tough. Raymond Yu gives an overview of the US MVNO market and identifies the key lessons to learn from those MVNOs that have been successful and those that have failed.

Content

Key messages
Ovum view
US - a fragmented but consolidating market
- Four players dominate
- Consolidation of regional MNOs
- Dominant US MNOs control the postpaid market
Wholesale market conditions
- The regulator is no longer involved
- MNOs' attitudes to wholesale
MVNO landscape
- MVNO successes
- MVNO failures
Lessons to learn
- Choose your target market wisely
- Get the basics right
- Be unique
Table of figures
- Figure 1 US MNO market share, 3Q04-3Q07
- Figure 2 US mobile connections and mobile penetration rate, 2006-2011
- Figure 3 US prepaid and postpaid connection split in 3Q07
- Figure 4 Comparisons of ARPUs of Sprint and T-Mobile, 3Q07
- Figure 5 US MNO disconnections, 3Q06-3Q07