Yet, for employees there will be uncertainty. Having worked in both companies over the years, it’s fair to say that bringing together two diverse cultures will be a significant task for the leadership team. For the merger to work, people will need to be at the heart of the discussion. 

Reducing duplication

That will bring about a debate on skills needed today and how it must bend as the new company goes through various transitions. What does the HR strategy look like for a new company of this size and nature, and what resource is needed to suit the future strategic direction? 

We’ll learn more about this as the broader strategy unfolds, but there can be no doubt that successful delivery will be underpinned by the mammoth network integration and rationalisation. After all, this was the prevailing case for a merger; if the UK wants to lead on connectivity then this must happen. 

Technical integrations of this scale take years. However, everything that hangs off the network must also be consolidated. There will be no luxury in having two of everything – two CRMs, two brand agencies, two BSS. The list is endless. Expect a scrap between the suppliers vying for strategic partner status. 

In the short-term, employees will welcome the job security that will come from managing the process of reducing everything by half. But – and it pains me every time I write this – jobs will go as the process kicks in. 

Three will fade

Getting back to the real basics of a brand, Vodafone’s  has much more equity than Three’s and ratings by the likes of Which? show how far behind Three is. It’s always been my hunch and it remains so now that I’ve seen the new logo, that the Three brand will eventually be dropped and making it easy to revert to a singular brand identity. I’m not a brand expert but I can’t see how a 51% stake in favour of Vodafone plays out any other way. VodafoneThree will be intent on making every ‘synergy’ it can for the ‘new normal’ and that includes the brand. (Buzzword bingo at its best.)  

Wholesale reviews

At a wholesale level, the remedies are now in full swing, so there will be some frenetic energy in the market. I suspect the wholesale team will be inundated with requests as every MVNO takes a look at what there is to gain. And, depending on the scale of the commercial requests, commercial aggregators like Gamma, eSIM Go and Gigs will be asked to step in. Good news for that side of the market. 

But what of the customer? 

Isn’t this all about them? Customers won’t care about any of the above so long as they get good value and service. 

They might start to care more about the impact of the merger when store closures are announced as the retail estate is thinned, or the inevitable network outages happen as a consequence of the integration projects. There’s just no way of avoiding interruptions to service that the aspects of bringing together large organisations will cause. 

There could be a bit of immediate friction too. Higher value Vodafone customers might balk when they realise former Three customers get ‘all you can eat unlimited deals’ for a fraction of the price. It will be interesting to observe how they handle this. 

What’s the right course of action for MVNOs?

1. Request reference commercials – This requires a written request, signing an NDA and, if you are a new company, a convincing pitch to VodafoneThree that you will deliver scale.
2. Review propositions – Can you do something new to target customers who question the validity of staying a VodafoneThree customer? Should your plan be to anticipate outages and seize on the chance to swoop in? 
3. Review your three year strategy – I would expect VodafoneThree to have very specific remedy and post remedy strategies so be warned. Discuss your options now, not when there’s a surprise change. 
4. Use your clout – If you are an MVNO on either Vodafone or Three building and protecting a base you have commercial clout post remedies. Turn this to your advantage and do the analysis to determine if your current wholesale offer is better than taking the remedy offer.
5. Think about your talent pipeline – There will be some great people, with huge experience and knowledge coming into the jobs market. Think about how you can scale with them onboard. 

If you want help running analysis of your commercial terms and how making adjustments could help you grow your business more quickly, then get in touch. We’re here to help. 

The post MVNOs look out. VodafoneThree has landed. appeared first on Graystone Strategy.

It’s therefore the perfect venue for the MVNO meet up of the year. With almost 600 delegates expected today, the breadth of expertise and experience is evident. As chair, I will welcome visitors from USA to Australia spanning MVNO, MVNE and MVNA.

In 30 years of telco, I don’t think there has never been a time when the industry has been as dynamic. Projected growth for the MVNO market reflects a steep upward trajectory with estimations of total value topping $150 billion by 2031. That’s an incredible 7.7% CAGR—driven by technological innovation, the customers demand for flexibility, and new entrants redefining what virtual operators can do.

I’m particularly excited that the event will have a strong representation from South America, Africa, and Southeast Asia, where digital-first propositions and low infrastructure costs are creating fertile ground for growth. These territories show that when regulation opens a market, and the shackles of legacy systems are negligible, rapid growth is achievable. As we’ll hear at various talks, launching an all-digital low cost MVNO is entirely possible in weeks.

Likewise, European and North American counterparts will illustrate how they are quickly carving out new avenues for growth using Enterprise IoT, AI and eSIM to differentiate.

The focus of the conference won’t necessarily be on the ins and outs of the technology, although there are plenty of opportunities to learn from the GSMA. Instead, we’ll uncover how brands are using digital journeys to deliver value – critical for building that all important margin. Innovators like Pendula will explain how Australian MVNO brands are using AI to keep customers engaged, and there’ll also a session on ‘growth hacks’ from the applied use of technology.

But it’s the lived experience that is often cited as the most valuable aspect for anyone new to the sector. That’s why I’d encourage people to join as many of the case study presentations as they can.

It’s the best way to get real insight on how brands are innovating and learn what could be transposed to your business. A good place to start will be RedBull’s presentation, which will lift the lid on its strategy to create a highly engaged fan base.

This year’s agenda will also look at the realities of running an MVNO. The panel discussions on successful marketing strategies should be high on the list of sessions to attend. If there’s one industry that proves that the philosophy of ‘build it and they will come’ is flawed, then it’s MVNO. Too many feisty start-ups have failed to deliver on the promise because they didn’t understand their target segment or how to communicate with them.

I’m also pleased to see that we’ll continue the discussion on diversity – expanding on last year’s panel looking at how women join the industry and progress careers, but also how we make the workplace more inclusive for divergent thinkers, and those with a disability. It’s an urgent conversation for an industry that prides itself on delivering affordable communication tools to customers, and I encourage people to take the opportunity to reflect on their company values.

Sustainability continues to get more airtime, and rightly so. Negotiating regulatory frameworks and setting industry standards are topics that can elude a scaling MVNO. But as research shows, they can’t be ignored forever. The conference will give people time to consider their role in building sustainable futures.

I’m a big believer that the success of a congress like this can’t be measured by the quality of speakers alone. I think the quality of conversations we will have over coffee (or a beer) are also a sign of how important events like this are.

Already, I know of deals that have been signed, but most heartening I have heard stories of people reconnecting after years of not being in touch and having vibrant discussions. For an industry that deals in connection there can be no better endorsement of the power of the MVNO community.

This is more than a conference—it’s a global forum for collaboration. Whether you’re here to find partners, share best practices, or challenge the status quo, I encourage you to connect widely, ask boldly, and think big.

The post My message for MVNO World – connect widely, ask boldly, and think big. appeared first on Graystone Strategy.