NEW YORK-The next 18 months are crucial for the increasingly crowded field of mobile virtual network operators, according to consulting firm Global Advertising Strategies.
According to a new study from the firm, MVNOs need to strengthen relationships with their wireless carriers and aggressively market themselves to gain a foothold in the market. Meanwhile, established operators must choose whether to woo MVNOs to their networks or compete directly against them in niche market segments.
Global said strategies need to be mapped out and executed quickly, as MVNO-carrier relationships will likely be locked up within 18 months.
“There is still time for new market entrants, but it will be much more difficult a year from now because most MVNO niches will be well established,” said Max Smetannikov, vice president of business development and analysis at Global. “Carrier consolidation has reduced the ability of MVNOs to negotiate favorable rates and services, and MVNO brands themselves will likely be subject to (merger and acquisition) speculation.”
