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Monday, September 13, 2010

The market for ’no frills’ mobile operators is growing, says report

Independent telecoms analyst Ovum says the market for ‘no frills’ mobile virtual network operators will increase over the next five years. Tesco – which runs the Tesco Mobile MVNO - and other retailers will benefit as more and more people select their mobile service as they shop.

Ovum’s new Global MVNO outlook report says the worldwide market for MVNOs will reach 85.6 million connections in 2015, up from 53 million in 2009. MVNO revenue will reach $9.5 billion in 2015, up from $8 billionlast year.

Jeremy Green, an Ovum practice leader, said “Connectivity is increasingly perceived as a straightforward commodity, so we expect to see an increase in the ‘no frills’ market, driven mainly by the supermarkets. Perhaps predictably, Tesco, which partnered with O2 to launch Tesco Mobile in 2003, is one of the most successful in the ‘no frills’ mobile arena and has been able to expand its offering into Ireland and Slovakia, where both parties are present.”

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