MVNO Explosion

Paradigm Shift In The Making

With the increasing number of mobile virtual network operators (MVNOs), concerns are growing about the dangers of excess competition and price commoditization. These worries are unfounded. A new business model in the wireless industry is emerging in which consumer spending on telecommunications and entertainment will merge, then expand, to create a much larger and more profitable market. There will be casualties, but virtual operators and network carriers have the best chance of survival. MVNOs will have the dual benefit of making the market more efficient on the cost side and turbocharging the adoption of services on the revenue side. While individual performance will vary, A.T. Kearney believes that as a group, MVNOs will change the structure, economic flows and culture of the wireless industry for years to come.