With over 100 Mobile Virtual Network Operators (MVNOs) launched since 1999 in Western Europe and over 30 present in the USA, mobile operators cannot ignore the impact that MVNOs are having on the market. MVNOs are taking significant market share (nearly one quarter of customers in Denmark, for example), and are increasing churn and subscriber acquisition costs in many markets. Also, because most MVNOs to date have focused on offering discounted voice services, they have increased price competition and lowered ARPU.

Regulatory environments are encouraging more MVNOs in developed mobile markets, but their relationships with mobile operators are changing substantially in the new 3G era. Mobile operators will need to develop strategies that maximise the benefits and minimise the threats of a new wave of MVNOs: record label Universal Music has established an MVNO in France, TV channel M6 and radio station NRJ each plan to set up MVNOs in France, and sports content provider ESPN (indirectly owned by Disney) plans an MVNO in the USA. A number of data-only MVNOs have also emerged, including the Earthlink MVNO in the USA, with services designed to support mobile PCs and data devices such as the Blackberry.

These companies are among more than 50 profiled in the report, in order to explain the impact of MVNOs to date, illustrate emerging trends, and demonstrate strategic lessons. The report also provides case studies of the development of MVNOs in country markets of Denmark, France, UK and USA, including details of all MVNOs in those countries.

The Future of MVNOs in the 3G era answers your key questions:

• What has been the impact of MVNOs on market shares, ARPU, churn and customer acquisition costs?
• What can we learn from MVNO activity to date?
• How will 3G networks change the MVNO landscape, in terms of the number, types and industry impact?
• What new types of MVNO will emerge to take advantage of 3G, and how will this affect mobile network operators and existing MVNOs?
• Why are content owners, media channels and business-focused service providers interested in becoming MVNOs, and why should mobile network operators consider hosting them?
• What types of organisation are best placed to become MVNOs in the 3G era?
• How must existing MVNOs, new 3G entrants and established mobile operators modify their MVNO strategies within the context of 3G?

Who should read this report?

• Incumbent mobile operators: See how 3G changes the business rationale for hosting MVNOs and identify the best strategy to suit your market situation
• 3G new entrant mobile operators: Determine whether or not you should being hosting MVNOs
• Existing MVNOs: Assess the impact of 3G on your strategy and decide when is the right time to upgrade and whether to find a new host operator
• Prospective MVNOs: Understand the changes presented by 3G and how these affect the service opportunities for your organisation
• Regulators: Understand how to deal with MVNOs in the 3G era, to achieve healthy competition without damaging the mobile industry

About the authors

Dr Alastair Brydon and Dr Mark Heath are founders and directors of Sound Partners Ltd and co-authors of a series of major reports from Analysys Research, including Wireless Voice over IP: technical and commercial prospects, The World?s Top Ten Wireless Services, Pushing Beyond the Limits of 3G with HSDPA and Other Enhancements, The Role and Impact of WiMAX and Proprietary BWA Technologies, TV and Video Services on a Mobile Phone: the killer application for 3G?, Delivering High-Speed Mobile Internet/intranet services: the role for 3G and public WLAN, 3G Launch Strategies: critical decisions on services and technology and The Road to Fixed?Mobile Substitution Starts with 3G.

Prior to joining Sound Partners, Alastair reported to Nokia?s European management team and worked with many of Nokia?s customers to implement market firsts ranging from the introduction of prepaid mobile tariffs to new mass-market content services. Previously, Alastair worked in a number of roles for the BT Group, focusing on the evolution of wireless services, networks and technologies. He also contributed to international research and standardisation of GSM, DECT and 3G. Alastair holds BSc and PhD degrees from UMIST and was awarded the IEE prize for top student.

Mark has held a number of marketing and business development roles in Nokia, ultimately becoming responsible for strategy and business development across Europe. Previously, Mark was responsible for business planning at BT Cellnet in the UK, having spent six years at BT as a senior consultant. Mark holds BSc and PhD degrees from the University of Leeds, winning the University prize for his research in telecommunications. Mark also holds an MBA, graduating as top student from Henley Management College.

Katrina Bond (Principal Analyst) specialises in mobile telecoms, and has written reports for Analysys Research on the mobile content and entertainment market, Western European mobile forecasts, mobile data solutions for businesses, GPRS roaming, pricing GPRS services, GPRS billing, mobile portals and ASPs and m-commerce. She is a regular contributor to Analysys Research's Mobile Networks and Services online market intelligence service. Before joining Analysys in 1998, Katrina worked as a consultant in Australia.