Haast’s fast gaining traction because its AI powered compliance platform alerts companies to risk of legal breaches and compliance bottlenecks when completing business tasks such as preparing and agreeing contracts, through to developing content and marketing campaigns. It’s designed to be multi-language and work across highly regulated industries including telecoms, utilities, pharma and finance. 

This disruptive approach to using AI for compliance has helped it win numerous Fortune 500 companies and international brands including Telstra, Aviva, and Zurich.

Building a channel partnership pipeline

Under the terms of the partnership, James Gray, managing director of Graystone Strategy, and Paul Jefferies, associate client director, will use their global expertise in go-to-market strategy and segmentation in the telecoms industry and parallel sectors to help Haast expand into the fixed and mobile sector, and related industries such as utilities and mobile phone insurance. 

“We’re excited to be working with Haast, which is fast becoming the leader in AI compliance management in complex, regulated sectors. Haast’s growth trajectory shows a strong appetite among business leaders to use its platform to transform how they operate,” said James Gray, managing director of Graystone Strategy. 

“Haast’s innovative platform is designed to provide an extra pair of hands for in-house legal teams, accelerating the parts of the compliance process that slow them down. The result is a legal function that can move at the pace of the business – without compromising on regulatory commitments.”

Paul Jefferies, associate client director at Graystone Strategy, explains why telecoms is a prime candidate for distribution: “Our goal is to help Haast build partnerships in the telco market. Telecoms is a prime example of a fast-paced, complex and regulated industry that must constantly find ways to unlock more efficiency and stay ahead of the competition.”

“We think Haast will give telcos the capability to do more in less time, and will be especially useful for organisations that can’t afford more legal resources, despite recognising its value to their business,” Paul concludes.

Haast’s platform offers UK businesses an efficient, scalable way to ensure that compliance doesn’t hinder growth, as Wessel Van Keulen, Founding AE Europe at Haast explains: “Our platform can support legal processes in every facet of a business and cuts compliance review time by 80%. We’ve proven you can increase an existing team’s capability using AI and as a result, grow the business without putting compliance at risk.” 

“That’s why we are excited to work with Graystone Strategy to expand our reach in the UK,” Wessel adds. “The team’s deep understanding of the regulatory landscape and its expertise in go to market strategy will be invaluable as we scale our business growth and bring the benefits of AI-driven compliance to a wider telco audience.”

Business leaders interested in discussing how Haast can help drive AI compliance solutions for their business should contact the Graystone Strategy team at enquiries@graystone-strategy.com.  

The post Graystone Strategy inks strategic partnership with Haast to drive its AI compliance solutions in the UK market appeared first on Graystone Strategy.

The post 1 Year On: How Has the VodafoneThree Merger Changed the Market? appeared first on Graystone Strategy.

In terms of strategy, no. I think we could see it from a mile away. Timing wise, yes. To do it a year on from officially merging two brands was sooner than I, and no doubt markets and analysts, had expected. 

The deal is made up of a £4.3m cancellation of shares and an anticipated £700m cost and CAPEX saving. A decent chunk of change in anyone’s book.

This will be realised by bringing the 100% owned company into the Vodafone Group and leveraging ‘synergies’ and, undoubtedly benefits from technical consolidation.

There are other upsides. The big one being it will neutralise the political concerns about Chinese ownership of critical infrastructure. This is likely to sit well with large enterprise too.

Yesterday, I was asked if I thought this would trigger additional CMA interest.

My gut reaction is that it won’t. There is no real change for consumers, and you could argue that consumers will do better out of the leveraging of intra Vodafone Group benefits. 

Plus, originally there were some substantial competition remedies on the table to ensure consumer and wholesale competition remains at a level comfortable for the CMA.

Which leads me to unpacking another anniversary present / question. One year on, how effective have the remedies been?

Avid readers of my blogs during the run up to, and announcement of the merger will know that remedies were as follows:

1. Investment plan of £11bn to create the largest 5G SA network. This had to be delivered in 8 years with key milestones over that period.
2. Special tariffs that were identified as good value for cash challenged households must be retained for 3 years (2 years left now).
3. A commercial deal was done to allow the merged entity to remain in the site sharing agreement with O2, which involved O2 buying some spectrum from Vodafone Three.
4. A regulator wholesale reference offer was approved, the aim being to maintain competition in wholesale markets. Existing MVNOs also benefitted from some wholesale carve out.

So, has it been successful? At a general level, I would say the UK market is still competitive. The Three brand is still trading and advertising, and as a consumer I haven’t seen a massive price hike, above the usual inflationary increases that the MNOs level (MVNOs not so much). 

I am a Vodafone customer and have been since I started working for them in 2002, and overall I think I have seen improvements in coverage locally through the network sharing and deployment of MOCN.

We haven’t seen the massive MVNO bonanza as I was expecting. But then it’s only been a year.

But, we have seen launches mostly via MVNAs such as eSIMGo, Gigs and Gamma. This includes brands such as Zim, Tekmoni, Rocket mobile, Millwall and other football brands.

In terms of larger multinationals, Gigs has enabled Revolut on Vodafone Three, which is part of a broader mobile strategy across multiple markets. Interestingly, Revolut has used 1Global in other markets so there is healthy competition in Europe.

And we shouldn’t forget the 1Global deal with Lidl which is expected to bring up to 30 MVNOs globally. The UK is likely to be one market that Lidl seeks to build on its increasing grocery market share (8.5%) and a region where it can also integrate its loyalty app.

There have also been a large number of announcements of intent to launch, including AO, Monzo, Klarna and Netonmia.

Part of the remedies include the expectation that Vodafone Three will send an annual report to the CMA detailing progress against milestones and demonstrate that remedies are working as expected. We wait to see what comes out. 

Overall, I would say the wholesale market in the UK is still busy. Large brands are interested and 12 months is really early days, albeit we have used a third of the 3-year window for remedies. 

I would say the next 6-12 months are going to be critical and I am forecasting more, larger brands coming to market, which I’ll report on as they happen. 

So, all that remains to be said is ‘Happy birthday Vodafone Three’! Some surprises but largely expected performance.

The Graystone Strategy team is the official training partner at the MVNOs World congress, where we will deliver three masterclasses on all aspects of delivering a successful MVNO. They are free for conference attendees so be sure to secure your slot. And if you need help determining your MVNO strategy in the wake of this announcement, drop me a line. We’re always happy to give some initial advice. 

The post Vodafone Three’s buy out is no surprise, but what happens for MVNOs could be.  appeared first on Graystone Strategy.

Launching a retail MVNO is, of course, not a new idea. We’ve seen this happen all over the world. But I think it’s the scale that is breathtaking. It’s a huge statement of strategic intent from both sides, and a reminder that retail MVNOs remain one of the most powerful, and, in my opinion, underutilised, growth levers. 

Lidl’s ambition to leverage its retail footprint in multiple countries, combines ingredients successful retail MVNOs boast, including the option to distribute at scale and capitalise on high levels of consumer trust. 

Coupled with access to 1Global’s digital expertise, Lidl is on the road to creating a compelling mobile proposition that can be set directly into the retail experience.

The case for retail MVNOs

Looking back over the last five years, MVNO performance has rocketed and, in some countries, MVNOs post better growth than their operator hosts.  

Close to home, retail MVNOs account for over 40% of all MVNO subscribers in the UK. Tesco Mobile alone has over 5 million subscribers and has successfully expanded into Ireland, the Czech Republic, and Slovakia. 

Alongside it, brands like Asda Mobile, iD Mobile (from Currys), Coop Mobile, and Superdrug Mobile are showing that a close bond between the mobile and retail experience pays off. 

You don’t even have to be trading with shops either, as proved by AO’s announcement last June, that it too will launch an MVNO very soon. 

Internationally, the success stories are just as compelling. The standout example is the market disruptor Bait, Walmart’s MVNO in Mexico. It’s seen extraordinary growth and now holds the number two spot in market share, outperforming two established network operators. 

On the other side of the world, Aeon in Japan, and Woolworths in Australia, are great examples of retail MVNOs that work because they already had so many of the ingredients critical for a successful retail MVNO. 

So why do retail MVNOs work?

Having worked across multiple retail MVNOs, including iD in Ireland, Coop Mobile in the UK and Channel Islands, Asda Mobile, Superdrug Mobile, and even the now-retired Mobile by Sainsbury’s, I’ve seen firsthand what separates the successes from the also-rans.

It comes down to a few critical factors.

1. Unmatched customer access

The first, and arguably most important advantage is customer access.

Retailers like Asda and Tesco have tens of millions of customers passing through their stores every week. That level of engagement dwarfs what traditional mobile operators can achieve. Mobile is a low-frequency interaction; grocery retail is often weekly, if not more.

Retailers also typically enjoy significantly higher Net Promoter Scores (NPS) than telecom operators. In simple terms, customers like supermarkets more and are willing to switch to them for their mobile.

2. Low customer acquisition costs and high lifetime value

Retailers with stores are perfectly placed to convert footfall into SIM sales at a fraction of the cost incurred by traditional operators. They have the space in store to allocate to sales either as concessions, or SIM displays at checkouts, and the staffing is taken care of. Plus, with a steady stream of customers through the door, there’s no need for expensive above the line marketing campaigns to drive awareness and footfall.

This dramatically lowers customer acquisition cost (CAC) and gives retailers the flexibility to invest more in customer offers such as bigger data bundles, better loyalty rewards, and / or compete aggressively on price. 

Retail MVNOs perform exceptionally well on key metrics like margin per square foot. I’ve seen how a small footprint in-store can generate disproportionately high lifetime value (CLV), especially when compared to the relatively thin margins on everyday grocery items.

3. Integration with loyalty

The real magic, however, lies in integration. The most successful retail MVNOs don’t treat mobile as a standalone product. They embed it into the broader shopping experience. This is where many weaker propositions fall.

When mobile is linked to loyalty schemes, member pricing, or exclusive discounts, it becomes far more compelling. Customers aren’t just buying a SIM, they’re unlocking additional value with a retailer they already engage with and trust.

And the benefits are felt both ways. Mobile drives retail, and retail drives mobile. As not only does the MVNO generate incremental, recurring monthly revenue, but it also drives the core retail business. 

Some of the best retail MVNOs I’ve seen, incentivise customers to increase their visits to store, and how much they spend using loyalty point accelerators, discounts, and vouchers. This results in significantly higher retail basket spend and improved customer loyalty.

4. Customer perception is king

Trail blazers like Tesco and Aldi Talk legitimised retail MVNOs 20+ years ago and won over generations of consumers who only grew up with the option of a big operator. The latest generation of mobile users have never known a market without MVNOs. The net result is that brand loyalty to MNOs has waned, and there’s a readiness to switch to brands that are not traditionally associated with telecoms. 

Lidl and 1GLOBAL make for a winning combination 

Lidl knows it can achieve the same results. It brings enormous scale, a strong value-led brand, and a growing digital and loyalty capability, and when blended with 1GLOBAL’s technical infrastructure and international reach, they’ll be able to execute across multiple markets. 

And, dare I say, with brands like Revolut in the 1GLOBAL stable who knows where Lidl could branch out to. Banking and financial services is also a fast growth MVNO segment. I wouldn’t be surprised if there’s a longer-term strategy there. 

Whatever the future holds, for now they have the ingredients for a highly competitive retail MVNO proposition, and it should prompt other retailers, especially in the UK, to stop and think. 

There are plenty of brands with the scale, loyal customer base and infrastructure to make a retail MVNO work. Morrisons More, Boots and its Advantage card, and the various Co-operative groups, spring to mind as contenders. Even Sainsbury’s, despite the previous exit of Mobile by Sainsbury’s, could revisit the opportunity, particularly given the strength of the Nectar scheme today. 

Given the grocery market is so competitive and the challenger brands are not only taking share and winning the price wars but now sharpening their focus on growth through MVNOs, it would seem fool hardy for other retailers to be complacent.  

In my view, this will spark the next wave of retail MVNOs. Because when one retailer moves, others follow. 

20 years ago, retail MVNOs felt like a risk. Why would a brand take money from the business to invest in an unproven model, when you could build another store, refurbish one to add new product line or even buy a competitor?

But now the numbers stack up. The model is proven, with global success stories and strong underlying economics. We talk about their merit every year at MVNOs World because they work. Not only that, MVNOs work hard for their parent brands. 

For retailers sitting on the sidelines, the question isn’t whether this model works. It’s whether they can afford not to be part of the next generation of retail MVNOs. Those that dally, genuinely risk losing out to competitors on both customer numbers and incremental revenue.

So, if you want to be part of the new era but need help with the proposition, the business case, technology choices, or wholesale contract, then Graystone Strategy can help. Our team have negotiated and launched many successful retail MVNO and are perfectly placed to get your strategy off the ground. To get in touch click here.

You can also book a face-to-face meeting with us at MVNOs World, June 1-3^rd in Amsterdam here.

The post Could the Lidl 1GLOBAL MVNO announcement signal a new wave of retail MVNO growth in Europe?  appeared first on Graystone Strategy.

As stories go, this is significant for the market and indicates the growth potential of operator sub-brands and MVNOs right now, even in a busy market like the UK’s. 

BT ditched an excellent multi-brand strategy

BT has been here before. At peak success, the stable included BT, EE, and Plusnet. The three brands represented three distinct opportunities to acquire more ‘traditional’ consumers (BT), to the more edgy and young (EE), to those prepared to go with a market challenger (Plusnet). But after a brand review last year EE became the lead consumer brand for fixed and mobile and Plusnet lost mobile from it’s portfolio.

The original multi-brand strategy worked as BT, EE and Plusnet not only reached high numbers of consumers across different segments, but they also supported a multi-play strategy of fixed, broadband and mobile, something the other operator sub-brands such as SMARTY, giffgaff and Voxi could not offer at the time.

But as we know, things change, resulting in BT walking away from a multi-play, multi-brand strategy and losing its low cost mobile offer in doing so.

Time for a rethink

This week’s news indicates times have changed again, and a sizable rethink is going on. BT’s hand is somewhat forced as successful MVNOs and sub-brands reign strong, especially in the value end of the sector.

The driving question is: how will BT tap into the ‘value’ space and compete against sub-brands like SMARTY, giffgaff, Talkmobile and Voxi? It’s done it before with Plusnet, afterall. 

These challengers are all winning share, alongside MVNOs like Tesco, iD Mobile, and Lebara – none of which are on the BT network. Not to mention Sky, which has a great multi-play offer in the market.

Top of the strategic imperatives is to establish if BT should build or buy. 

Acquiring an MVNO with brand recognition, established infrastructure and customers, will be very appealing to get the job done quickly. But why go down that route when you could build a sub-brand with your own infrastructure? 

Let’s look at the pros and cons of both.

Setting up a sub-brand is common practice today. UK examples include Voxi, SMARTY, giffgaff and Talk Mobile but the phenomena is established throughout mature markets.  

It allows you to choose and build a proposition that is 100% complementary to your other brands. It allows you to have total control and leverage some of your network economies of scale.

BUT it takes time to set up, comes with the hefty costs of developing and launching a brand, and, if you seek to leverage too much of the existing ‘masterbrand’ infrastructure, or the skills working within the masterbrand, you can start to stifle the entrepreneurial spirit that a successful sub-brand needs.

Stepping back to a time when sub-brands weren’t a thing, operators only had the option of wholesale deals to find complementary MVNO partners that allowed the MNO to indirectly take share of a customer segment they could not address with the masterbrand.

The alternative approach has always been to find MVNOs which will address segments where the operator masterbrand is not strong. This allows the operator to indirectly target the segments through the MVNO and take their value through wholesale revenues.

But, and it’s a big but, operators don’t control the brand, it comes without the full retail revenues or customer ownership and they don’t set the proposition or pricing. This can be uncomfortable to mobile network operators, because without a level of control it’s hard to stop the MVNO drifting into your lane, and risk no longer being complementary.

Buy an established brand or a fledgling?

The speculation that an acquisition is in the offing, suggests BT has done its homework on all of this and has arrived at a crossroads – a) ‘buy’ an established brand with a large base and then supercharge the operations with MNO capital or b) buy a brand based on its potential. 

We have seen this done in France and Spain extensively over the last few years with a host of operators buying up and integrating MVNOs into a multi-brand portfolio.

BT obviously has significant financial resources so has options. I expect the board will first investigate an acquisition from within its existing wholesale portfolio. These MVNOs are already integrated into BT and the majority of BT’s portfolio (except Lyca) are light MVNOs meaning no SIM swap, and potential customer churn, should BT acquire them.

So what are immediate the options to acquire? It’s a very short list:

• Utility Warehouse offers a good base, a very unique and sticky low cost offer and it’s multi-play. But this presents a bigger question: would BT want to buy the whole business – gas and energy etc too?

• There’s 1p Mobile, the spin off from Utility Warehouse. It’s low cost but would it feel like a credible competitor to SMARTY, Voxi etc?

• Lyca is probably the organisation with the most subscribers and therefore appears a good prospect. BT Wholesale lured the brand away from O2 and it could make sense to go a step further given it’s already hosted on its own infrastructure.

However, BT might not consider it an optimal partner in that Lyca’s heritage is in the low cost international markets not domestic. 

Although Lebara has successfully proven moving from low cost international to a value brand can be done, it’s taken a long time and BT may not have the appetite to commit to a lengthy process with Lyca. There’s also the risk that any acquisition would inherit the long running HMRC dispute.

• Spusu may be an option. Low cost and already doing well against the SMARTY-style brands on Uswitch comparison tables. It signed with BT in 2023 and uses BT infrastructure, and, although an international operation, it may consider spinning off a brand in the UK.

• And then there is the relatively new wild card, Slice. It’s a sub-brand run by Lyca on an existing BT wholesale deal. It boasts a unique proposition and has an excellent user experience. I am a customer myself, albeit only as a back up SIM, but if I was buying for capability then Slice is where I would start my conversations. 

It also has the advantage that the CMA probably wouldn’t scrutinize a purchase too much, given the relatively low customer numbers involved. And let’s be frank, who would have the energy for another protracted merger discussion….

• If I wanted to be wild, I could suggest that with BT’s financial assets they could go BIG and buy on the scale of Revolut, taking the brand into a whole new area. 

This is of course huge speculation on my part. I have no inside track on any of the ideas I’ve mentioned. 

But, it’s got you thinking, hasn’t it? And that’s why I love telecoms. There is always something exciting going on. As ever, we’ll need to watch, listen and learn. 

Need help with your MVNO strategy. Talk to the experts. My team knows the industry inside out and can help you look at the options.

The post BT’s in the market for a low cost brand. What are the acquisition options? appeared first on Graystone Strategy.

And now, both will have telecom brands in common, as the headlines across the tech press show. Yes, the new kid on the MVNO block is Mr Beast, real name Jimmy Donaldson.

 “Mr Beast could cause trouble for TMobile and Verizon.”

“Mr Beast’s Wackiest Challenge Yet: Launching a Phone Company.”

“MrBeast’s Mobile Phone Ambition Could Rival Reynolds, Trump Family Ventures”

Not so whacky 

It falls against a backdrop of past success for other big name personalities. Ryan Reynold’s Mint Mobile is often hotly discussed as a model to emulate. In a nutshell, it capitalised on the critical ingredients new MVNOs need. A good, fair, simple pricing model and a strong brand, in this case, backed by the caché of a superstar founder.

This week’s stories about Mr Beast’s intentions read as a sensational move. It’s a surprise that the YouTube superstar, who has around 430million subscribers, would dare to launch a mobile company. Yet, to anyone in the industry (especially those twice the age of the 27-year-old) it’s a no brainer.

Why does it make sense?

There is of course a lot to get right when launching a new mobile brand. You must have the right wholesale agreements in place, a great proposition and a simple way for users to purchase, activate and manage an account. Above all, MVNOs must be different to everything else on the market, and be ready to spend on marketing, especially when no one has ever heard of you before.  

Mr Beast has a head start with regards to many of those ingredients. A huge global reach negates the need for the level of marketing and spend other brands would need to stump up. The scale of the audience provides the channel to market and simply equates to a huge revenue potential. This gives Donaldson significant bargaining power at the table, so getting the right deals for launch shouldn’t be too hard.

Should MNOs be worried?

There’s very little existing operators (MNO or MVNO) can do to bolster their brands from the ripples, or more likely, bow waves, that will come from a launch by a mega star of this ilk. 

And let’s face it, the first time mobile users who are joining the market, ones that have grown up with YouTube, might not even consider another provider for their mobile. That’s something MNOs and MVNOs alike will need to face up to.

MNOs might want to ensure they have a chance to be the wholesale provider though – think of the revenue! 

It won’t all be plain sailing

That said, launching an MVNO with global reach comes with challenges. Maintaining a great brand experience across multiple markets is top of the watch list. It’s operationally complex, with a multitude of different mobile wholesale deals to manage, and different regulatory regimes to negotiate.

I’ve seen this be the downfall in many scaling MVNOs. It takes meticulous knowledge and care to get right. It’s not impossible, but you certainly can’t blunder in thinking your superstar brand status will do all the talking.

There’s also the acute point that mobile is competitive. You can’t launch and hope things will look after themselves. The money might roll in to begin with, but if there’s an ounce of dissatisfaction, or a failure to give people special treats for their loyalty, then things will unravel.

Mr Beast will need a team that can keep innovating on proposition, so his audience stays hooked. Look at the effort MVNO football clubs go to, day in day out, to keep their users ‘sticky’. It takes everything from free content, special merch, and access to insider knowledge or early tickets sales that other fans can’t get, to keep people on the network.

Potential for a Mint-Ryan-Reynolds-style sale

If Mr Beast can deliver on this, then he probably not only has a successful business but also a brand he could sell to an MNO (or other digital darling) that needs to grow its portfolio and access a market it wouldn’t otherwise be able to reach. Ryan Reynolds’ Mint Mobile was successfully sold for a reported $1.35billion, so why not Jimmy’s?

Should Trump Ventures be worried?

Personally, I think Trump Ventures’ mobile ambitions will be unaffected by this news. The overlap on target audience is probably limited, and Mr Beast joining the competitive fray won’t be the thing that influences how successful Trump Mobile is. (You can see a blog on wrote about this earlier in the year here.)

Fortune favours the brave

All things considered, and if everything aligns for launch in 2026, then I think the Mr Beast brand has made a brilliant decision. The brand value, breadth and energy has the potential to make a fortune.

However, as I said before, picking the right markets, negotiating the right pricing and putting in place the right proposition is where the magic lies. So, if you are reading this, Mr Beast, don’t be a stranger. I’ll help you get what you need for world domination!

Drop me a WhatsApp on +447766244962

The post Mr Beast trumps Donald to go mobile. It’s the MVNO story we should have expected. appeared first on Graystone Strategy.

It’s actually quite extraordinary to think how far travel eSIM has come in such a short time. In 2017, MVNO World looked at eSIM as a disruptive technology to watch. Now the scrappy challenger designed to encourage customers not to roam but to get better value through downloading a local SIM, is a real contender for differentiation. 

Market primed for growth 

By 2028, travel eSIM spend is expected to grow from €3.1 billion to nearly €7 billion. The big catalyst to it going mainstream, is largely due to the digital platform advances that MVNOs pioneered. You know they’ve done a good job when the networks invest in digital to keep up. 

MNOs couldn’t ignore the fact that customers have been embracing travel eSIM all over the world via banking, retail, and travel offers and, in part, thanks to the shift in handset design. In pure facts and figures, some 67% of consumers will consider travel eSIM as an alternative to their current solution for accessing data when travelling. 

And, anecdotally, enterprise users are using travel eSIM too. It’s perfect for those keen to keep costs down and avoid some of the quite extreme roaming charges and bill shock incidents we have come to see in the news (everyone has an example).

Is this the death knell for independent travel eSIM?

Clearly this has started to hurt the big mobile network operators, with the irony being they are offering a challenger to their own roaming business. It’s no doubt it’s a calculated move as customers are rejecting high costs of using data abroad with their home network.

Does this sound the death knell for independent travel travel eSIM providers? I don’t think so.

Firstly, many of the providers are selling the service under their own brand as part of an extension to existing services customers use before they travel. Airlines, travel insurance companies, travel agents and foreign exchange travel money companies can wrap the service into their user journeys and sell travel eSIM add ons for travellers. 

This gives them the upper hand as they will understand consumers’ travel plans in advance. eSIM can be sold months before the trip when the customer books flights, accommodation and airport parking. Whereas the mobile network only knows the customer is travelling when they land. It’s therefore a great value added service to sell, and the travel company gets multiple opportunities to remind customers to buy a SIM ahead of departure.

Secondly, as Revolut has done very successfully, the costs can be blended across all those services allowing free or heavily discounted offers. What’s not to like?

Thirdly, there is a customer perspective to consider. Yes, the networks are trusted brands, but the customer perception is they are the reason why they have had to take a travel eSIM in the first place. To put it bluntly, customers feel they have been ripped off on roaming so, I think, they will be less inclined to hand over their money to MNOs, even if it is for a cheaper travel eSIM solution.

Obviously what Vodafone has in its favour is high equity brand trust, and the benefit of digital investments that allows it to see when customers pop up abroad, and trigger an offer for a more cost effective solution.

That said, I still think it’s a bit of a stretch for customers. In the short term, it means customers will become more aware of travel eSIM and its value, and see that they have more choice. 

Consolidation on the cards

However, I do think we will see significant consolidation in the travel eSIM market over the next three to five years and probably some acquisitions. Who knows maybe the MNOs will be doing some shopping for a partner with scale and relationships as we speak. 

That’s something to think about – if you’re an MVNO, do you take advantage of more hype in the market and grow to compete, or do you scale for a sale? Big questions that need to be answered soon, I suspect. 

If you are a brand considering a travel eSIM proposition, a network working out your response to travel eSIMs or a travel eSIM provider wanting to work out how you survive and thrive through consolidation, then get in touch. Our team has experience of working through all scenarios and can get you on the right road with truly independent advice. 

The post Voda’s Travel eSIM has landed – will we see eSIM consolidation appeared first on Graystone Strategy.

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.

But, in gathering reaction from leaders across the market, I can see that several clauses in Friday’s CMA announcement rattled a few cages.

For instance, if you take this paragraph at face value, you could conclude it’s game over:

“may be expected to result in a substantial lessening of competition (SLC) in two markets in the UK. These are the supply of retail mobile telecommunications services to end customers, including both consumers and business customers (the retail market), and the supply of wholesale mobile telecommunications services (the wholesale market). “

In truth, there is nothing new here – it’s the CMA’s remit to explore this aspect of a merger.

The same is true for this clause – it’s not a new concern.

“The Merger would reduce the number of MNOs from four to three, making it more difficult for independent MVNOs to secure competitive terms, restricting their ability to offer the best deals to retail customers. This is important because many MVNOs price aggressively, often focusing on value segments of the retail market.”

It’s true, MVNOs who are usually challengers and price leaders could experience wholesale price increases and hence be unable to drive competition. But if contracts have been drawn according to what I believe to be best practice, and would always recommend, there will be some price protection and the option to renegotiate periodically. If wholesale prices went up, then of course, over time we should expect retail prices to rise too. But there are ways to remedy both challenges, which I’ll get on to.

“Most consumers also told us that they would not be willing to pay more for better quality. We therefore have significant concerns about the impact of the Merger on the large number of consumers who might have to pay more for improvements in network quality they do not value.”

I’m sure if you were asked if you want to pay a premium for quality, you’d be reticent.

But let’s be pragmatic for a moment. If it was a wholly price-based decision, wouldn’t Three as the cheapest mobile operator have the most customers in the UK market? There is clearly a difference between what consumers say and what they do, and I think the JV will push back on that.

It’s this paragraph that reveals the nitty gritty of the debate and indicates that compromise and negotiation are options. The CMA is willing to consider remedies that the two parties want to put forward.

“We are also consulting on potential solutions to our competition concerns. These include legally binding investment commitments overseen by the sector regulator, Ofcom, and measures to protect both retail customers and customers in the wholesale market. We will retain the option to prohibit the Merger should we conclude that other remedy options will not address our competition concerns effectively. In our notice of possible remedies, published alongside our Provisional Findings, we have set out more detail on options to remedy the provisional SLCs.”

If it were me, MVNOs and wholesale remedies would be top of my list. I think they will feature strongly as the parties explore options. But to understand why, we need to look at what else is on the table.

So, what is on the list, and which have merit? 

1. Divestiture, for which there are two directions 

The first is getting one of the parties to divest an asset. The CMA has pretty much suggested that there isn’t a company that could be carved off and could still trade as a separate entity. If we were talking about O2 back when they had proposed a merger with Three, then the Tesco Mobile JV and gifgaff would have been a reasonable candidate for divestiture but there are not really any options between Three and Vodafone.

However, an extremely radical (and highly unlikely) proposal could be to package up all the various sub brands of Voxi, Talkmobile and SMARTY and sell them to a third party which operates them applying MVNO economics.

It’s not as crazy an idea as it might seem, were it not for the relatively low customer numbers involved (probably less than 3million). It’s that which makes it a) difficult to justify a rebalance in the market and b) hard to find a buyer.

The other divestiture available is spectrum assets. There has been lots of talk about this and it is an obvious target. The CMA seem unconvinced that this will significantly alter the competition in the market. The merging parties have been pre-emptive, and if the merger is granted, have agreed with VMO2 (which need spectrum) that it will bring Three into the existing VF/ VMO2 site share agreement.

2. The next remedy is an investment commitment.The CMA needs to be convinced that the parties will make the investments outlined in their plan. If this goes ahead then I think this is almost a given that the CMA will seek to have some sort of binding commitment for this.
3. Retail customer protections is the next.In effect, the merged entity will be expected to honour current offers and pricing in the market for a negotiated period. This was one of the concessions made in the Channel Islands merger that Graystone was involved with, and with that experience to hand, I suspect this is something that can be easily agreed.
4. It’s therefore highly likely there will be a reliance on wholesale and MVNO remedies, with numerous tried and tested options apparent in other markets.

The first is the solution of divesting some spectrum to an MVNO to allow them to become the new fourth market entrant. We have seen this solution applied in Spain recently after the merger between Orange and Mas Movil. In fact, it was only approved subject to MVNO Digi getting access to both spectrum and national roaming agreements so they could become a credible fourth network over time.

How could this work in the UK? It would have to be a full MVNO and not one owned in a JV. So, it couldn’t be Tesco, the most obvious candidate in terms of scale. This therefore limits the options to Sky (most likely) Lycamobile, Lebara or Gamma.

In theory, there’s nothing to stop a credible and financially sound new entrant being created. But not only would that take a significant investment, we also have to remember that the whole premise of the merger is that Three cannot function and make the network investments required to be profitable with 10m customers.

With that as a backdrop, it would be a very brave organisation that takes on the market from nothing. But who knows, maybe Elon Musk, or someone similarly driven and financially able, fancies an adventure in telecoms. Nothing surprises me at the moment…

5. The next MVNO / wholesale related option is capacity ringfencingto allocate spectrum specifically for MVNOs. In the past, there have been two approaches to this. The first, used in Ireland and Austria amongst others, was to ring fence capacity for MVNOs and implement a capacity-based charging model.

In those examples, it was also coupled with bringing in new market entrants to leverage this model. However, it should be noted that those markets did not have such a vibrant MVNO market as the UK. Whilst this model is interesting, it’s my opinion that it typically requires the MVNOs to be full MVNOs, which is capital intensive. Not only that, but there are relatively few in the UK, making it a less viable solution.

A more radical solution, which was deployed in Mexico, was building a network entirely for MVNOs. Wild as it may seem, the same could be achieved using allocated spectrum and a full MVNO infrastructure either owned by a third party or leveraging the merged entities infrastructure (as they will have two of everything!).

This would be like creating the equivalent of Openreach for mobile. So, not such a wild idea as it’s been done before. But I suspect it’s a bridge too far for Three and Vodafone.

6. That leaves us with regulated pricing.On balance, I think this is the more likely option, and fits with the CMA expectations of Wholesale access terms. This could involve pre-agreed non-discriminatory wholesale terms, including prices, being made available to MVNOs, subject to a reasonable limit (number of MVNOs or network capacity utilisation).

This is relatively tried and tested in markets globally. However, the challenge is always how you set those terms. There have been many methodologies deployed in the past and not all have helped MVNOs succeed.

We should also consider that historically in the UK, wholesale deals and pricing have been 100% confidential and, because of this, published wholesale rates could cause a correction in existing wholesale deals.

What would I do? 

No one remedy is the golden arrow, but there are certainly golden threads that the JV parties, and the CMA could look at together. I think that applying scrutiny to the MVNOs and wholesale market is more likely to benefit MVNOs commercially, and therefore consumers, whether it’s a new entrant, or via existing MVNOs.

That’s where I would focus attention initially and it’s why I still think there’s a good chance of this happening. The CMA is stating a position of openness and it’s now up to the parties to come to the table and negotiate.

If this has made you think your business needs a plan fast to react to what will be a significant market event whether it is a yes or a no, then speak to us at Graystone. This is our heartland and we’d only too pleased to work with you on a strategy for success. 

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It’s an unstoppable multi-billion-dollar industry and you’ve followed the developments of new licenses around the world. Your analysis shows you that you could make a name for yourself in a burgeoning market.

You’ve got the intel, and the spirit and drive to be successful, but how do you get your idea off the ground quickly?

Ordinarily you’d expect me to say that you should develop a proposition, one that will give a substantial cohort of consumers something different, and compelling, even unexpected. Do the business case and speak to the operators and become an MVNO. It’s a tested model – Deliver a killer go to market strategy and through all means possible drive awareness of your brand and ultimately achieve cut through and customer consideration.

That’s a considerable commitment in time, and cash, even before you’ve started trading. Is it really possible to follow your dream?

Yes, and it can be easier and less costly if you re-evaluate what a brand is. If you set aside the concept of creating a brand, and all the complexities that comes with, but instead focus on the other core elements of running a business then you have a chance.

But a brand is the business I hear you cry. And yes, it is. But you can be a brand without creating your own. Today more and more fledging mobile entrepreneurs are latching on to the merit of licencing a brand.

I bet it’s not something you’ve considered before. It’s an option that has been quietly ticking along in the wings for some time now but came into the spotlight at MVNO World Congress in June, thanks to David Clyde, Brand Director at Lebara.

Lebara is a fascinating MVNO story. It’s now a well-known global MVNO brand, and it stands out because it’s a mobile provider that has proven how it’s possible to adapt a core brand for different markets.

Wherever you travel, the Lebara brand will be recognisable. It’s distinctive logo and uncomplicated offer shine through. Its rapid growth around the world is testament to decisively sticking to its core proposition and knowing its audience.

However, Lebara recognised some time ago that there isn’t a ‘one size fits all’. Brands don’t survive unless they make adjustments for local market conditions, language, and culture.

It’s something that Vodafone have led the way on. The brand team there, understood that a globally recognised and highly valued brand which is usually unwavering in its brand guidelines, needs to flex to accommodate local market nuances without losing the brand essence.

More critically, Vodafone has been highly successful at monetising the brand and what it stood for, by establishing a ‘partner market’ network. With this model, Vodafone allows partner markets to leverage the brand, the propositions, and the insights without technically being an operating company owned by the Vodafone Group. It’s a winning formula – partner without the cost of a network roll out and establish a brand presence in new territories with ‘relative’ ease.

In terms of how you and I experience it, it’s really quite straightforward. When you travel to a Vodafone partner market you may see familiar proposition elements including retail formats that are identical. The brand you trust in the UK is instantly recognisable, and all it stands for comes to mind just being seeing the shop front.

In this case, Vodafone is taking all the best practice, insight and trading experience across retail, proposition, brand, CVM, roaming and so on, and giving partners a way to leverage it all so they can accelerate their own commercial success and what’s more, do it with a standout brand.

It’s with this context in mind, that Lebara’s brand licensing proposition for MVNOs is so interesting. As a budding MVNO you can access a globally recognised brand and customer proposition, with the help of a team who have driven growth for Lebara globally, vastly increasing your chances of success in your chosen market, and probably adding significant credibility for those all so important MNO wholesale discussions.

Is now the time to strike?

Quite possibly.

Lebara has moved quietly and confidently with its strategy, establishing partners in Australia, Switzerland, KSA and Spain. More recently, it announced a partnership in Nigeria with Vas 2 Net, one of the Tier 5 license holders. Vas 2 Net will benefit from an established brand, exec expertise across every discipline and function, and benefit from know-how built from years of hands-on experience. This level of help is undoubtedly invaluable for any new MVNO.

It makes good sense for a start-up MVNO to go this way. As I’ve said, building a brand can be an expensive business both in terms of time and hard financial cost. I know from experience of launching MVNOs in a number of markets. In all cases, we had a trusted brand (Sainsbury’s for instance) and we were simply leveraging the brand values and customer loyalty to move into the mobile space.

For an MVNO starting out with a blank piece of paper and absolutely zero brand awareness or customer consideration, it can’t be overstated how much of a big task it is to make a name for yourself. It takes hefty marketing budgets to gain cut through.

So, why not look at leasing? It’s not just any brand that Lebara is delivering. It’s a well-established and trusted MVNO brand with impeccable smart value credentials, exactly the type of brand that any start up MVNO would aspire to be.

On top of all of that there is the unparalleled knowledge, insight, and experience that MVNOs can tap into, all of which has enormous value.

Of course, it would be naive to think Lebara will work with anyone. Afterall, it has a brand to protect too. Expect it to be highly selective about who it will partner with and steadfast to ensuring every licensee delivers against brand expectations and promises.

Brand licensing won’t be for everyone, in fact start-ups may look at Lebara, Vodafone (and others) and think that they could monetise their efforts with their own licensing strategy. It definitely gives weight to the argument to invest in building brand equity as part of an investment in the future.

With that strategy comes other options too. For instance, you could sell the brand to the MNO to create a sub brand that’s promoted in markets they believe they can grow share in.

My point is, MVNOs have more options for growth than they perhaps realised before. Just as they have a range of choices about their technical strategy and their commercial strategy, they now have some interesting choices on brand and marketing strategy too.

The reception David received at the conference, highlighted the appetite for this diversification. And the questions I was asked subsequently, show how much head scratching is already going on. I’m sure this won’t be a strategy confined to a few markets for very long. Not only should we expect to see more Lebara brand licensees in the future, but I’m certain other big MVNO and/or MNO brands will follow suit in the coming years.

If your head is fizzing with ideas after reading this, then our expert team at Graystone Strategy can help you work through the best approach for you. With over 100 years collective telecoms and MVNO experience spanning technology, operations, commercial and marketing we can help you make the right choices for your MVNO.

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