Eight years after the launch of the world’s first Mobile Virtual Network Operator, MVNO is once again a buzz word within the telecom industry. Attracted by lower barriers to entry, potentially high returns on investment and strategic synergies, there has been a steady stream of new MVNO launch announcements, predominantly in the US and Western Europe, but also further afield in South America and Eastern Europe too.

And, after several years of limited investment in the telecom sector, as a whole, MVNOs are now managing to attract significant financial backing. In the US, new entrants Helio and Amp’d have raised US$440m and US$260m respectively, from both trade investors and private equity sources. Some industry observers believe that MVNOs will increase in importance over the coming years – they currently account for less than 6% of total mobile customers in Western Europe – but some forecasts suggest that this will rise to 15% within 5 years and ultimately to 20%. However, with the recent withdrawal of EasyMobile from the Dutch market, and Disney’s decision to pull the plug on ESPN Mobile, there are question marks about the viability of the MVNO business model.

Download Full Whitepaper