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InfoCom Uncovers Data-Only MVNOs Strategies, Which Use Mobile Broadband to Add Value

Mobile connectivity added to products or services to increase value Players adopt full MVNO approach and customised tariffs Mobile broadband also used to defend a competitive advantage.

Stuttgart, Germany, December 22, 2011 --( Data-only MVNOs bank on mobile data services to up-sell and cross-sell core products — for instance laptops, e-book readers — or services — for instance telematics or ICT solutions in general — and thus add value to product or services that they already offer within their portfolio. This results from a recent research on new MVNOs’ business models that InfoCom has carried out in several relevant markets worldwide. The research clusters different data-only MVNOs, depending on the business models adopted, although focus specifically on devise-based MVNOs and Machine-to-Machine (M2M) MVNOs.

Device-based MVNOs are mostly ICT retailers — such as Amazon or Best Buy, although there are some cases of vendors — who leverage their distribution network to add mobility to their offer of laptops. The mobile broadband data service adds value to the product “as the mobile connectivity is already included without the customer to have to buy it extra,” a Senior Analyst at InfoCom commented. Such retailers take a full MVNO approach, handling most of the service infrastructure from billing, CRM, sales and distribution. And they adopt their own tariff, with own prepaid and postpaid plans, even customised according to different laptops brands.

Accordingly, most M2M MVNOs are M2M providers that have added mobile data connectivity on top of their M2M applications or include mobile data services as part of their own M2M solutions. The mobile data service bridges the connectivity requirement and enhances the value of the products. These companies partner often with other MVNOs and may also have wholesale agreements with other network operators locally and overseas to ensure a more extensive availability and reach of the service outside their local market.

Adding mobile data services is also used as a tool to create or defend a competitive advantage over industry rivals. HP, for instance, launched its data-only MVNO service already in 2009 to improve market share in Japan where it faced strong competition from local manufacturers. The same logic was followed by Amazon that bundled mobile data services to its Kindle to protect its market from Apple and other tablet manufacturers. Some MVNOs bank on mobile data services to minimise churn on their core products and services. Providers of ICT solution to enterprises, for example, launched MVNO offers as part of bundling strategies to curb churn among enterprise customers.

Most of data-only MVNOs generally prefer a full MVNO business model, where they manage most of the service infrastructure from billing, CRM, sales and distribution but, on the other hand, they have more flexibility as regards providing the service and designing their own tariffs.

About this extract: This extract in based on InfoCom recent study of mobile broadband markets. If you are interested in this report, do not hesitate to get in contact with us. Talk to us. We listen.

About InfoCom: InfoCom is a market research and consultancy company with over 20 years experience providing strategic analyses and planning assistance to stakeholders in the telecommunications, IT and multimedia industries. InfoCom’s independent and fact-based analyses highlight trends and opportunities, supporting decision makers to understand market dynamics in order to improve their competitive advantage.

Contact Information
Infocom GmbH
Loue Elijah D. Bernardo
+49 711 870510-39
Marienstr. 41, 70178 Stuttgart, Germany

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