VIRTUAL MOBILE OPERATORS WELL ESTABLISHED IN NORTHERN EUROPE.
Mobile virtual network operators (MVNO), providing mobile telephony services using the networks of existing operators, are already well established in Northern Europe, notably the United Kingdom, the Netherlands and the Scandinavian countries. These operators, leasing network space from other operators, include telecoms operators, like the German Debitel group, currently preparing to enter the French market in July, and distributors like the British group Tesco and the AH chain in the Netherlands. Denmark, the United Kingdom and Norway have proved the most fertile ground for these operators who have secured 10 to 20% of the mobile telephony market in these countries, according to analysts Omsyc. "MVNOs have adopted a price-oriented strategy focusing on starter ranges, with a negative impact on prices on the prepaid market", according to a study by Exane/Arthur D. Little published at the beginning of 2004.
The best example is that of Virgin Mobile, created in 1999 billionaire entrepreneur Richard Branson, which had attracted three million clients in Great Britain at the end of 2003 thanks to pre-paid formulas. Virgin Mobile focuses on clients reluctant to pay a monthly subscription or make a long-term commitment. "Virgin has not only participated in the growth of the market but has also attracted clients away from existing operators: only 49% of new clients in 2001 were first-time mobile clients, compared with 74% for other British operators", according to the study. Its service is based on Deutsche Telekom subsidiary T-Mobile's network, and Virgin...
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