Parallel Lines: The MVNO opportunity


Redundancies, bankruptcies and repossessions are in the newspapers every day.

While most sectors look to consolidate and take shelter until the storm passes, the telecoms arena is showing a bullish resistance to market forces. 

That said, the financial climate will no doubt claim victims in this market too. Certain sectors may struggle more than others.

The PBX market, for example, will see the effects of the downturn as businesses cut back on capital expenditure.

Voice resellers in both fixed and mobile markets will benefit from a renewed determination to cut costs.

The MVNO model is already proving a popular addition for many and offers greater flexibility both to the consumer and the reseller, and also represents far greater value in terms of customer ownership.

Over the past few years I have heard numerous people say that as voice re-sellers we represent the ‘poor relative’ of the industry and that there is no margin in minutes. 

But telecoms dealers have been told they’ve had it too good for more than a decade, that they need to get out of the switch business and into the software and server businesses. 

Changes are apparent with the rollout of BT’s 21CN and the emergence of LLU.

But the VoIP arena has never really lived up to the hype, and this economic shift may prove catastrophic to many of the standalone VoIP providers who have invested millions in development.

Full article in Mobile News issue 433 (February 23, 2009).

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