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 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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However, there’s another interesting story MVNOs should follow. For the first time in its history, the archipelago of Channel Islands is close to launching its first MVNO in the shape of Coop Mobile. Again, all subject to regulatory approval, the launch would be a remedial action in the wake of the likely completion of Sure’s purchase of Airtel-Vodafone.

Why should we care?

It’s all about the development of an MVNO market and the innovation that could come from it.

 It’s worth a few facts at this point. The islands of Jersey and Guernsey are home to 170,000 residents spread across an area of 70 square miles. Each island is independently governed and has its own regulator for telecoms.

Unsurprisingly, the proposed merger of Sure and Airtel-Vodafone has attracted regulatory attention. Principally, the merger would leave the islands with just two operators, limiting consumer choice. If you’ve watched other mergers around the world play out (think Ireland and Austria) then you’ll know that’s a bug bear for regulators. Stands to reason, a merger will be scrutinised, and why there will be reviews on competition and choice. We know from other examples that this leads to interesting proposals. That’s why Sure has put forward the launch of an MVNO as part of its remedial plan. Maintaining a buoyant competitive market isn’t about sticking with the status quo. Innovation – in the form of new licences – can steady the helm. 

Let’s look at the context.

The reasons for the purchase of Airtel are not dissimilar to those proposed by Three / Vodafone in the UK. Airtel-Vodafone is unable to sustain operating costs especially those associated to updating the mobile networks across the two islands. Its decision to exit the island will bring home the reality that it was making a loss. (I can’t imagine it was an easy brand decision to make with the ‘heart’, but I’m certain the ‘head for numbers’ had the final say.)

 Nevertheless, the sale, if approved, leaves a gap in the market. It might be considered a small gap at this stage in the game but closing it with a keen MVNO should turn that assumption around.

Is this really going to happen?

I would say, yes. There’s a good line of retailers that have taken the opportunity to join the MVNO community, setting the precedent for linking a value offer with mobile and combining the wealth of customer insight with targeted propositions.  

Having consulted the Coop team on the negotiations, I’m very excited about the prospect. By applying for an MVNO licence in both islands, Coop can leverage its considerable retail estate as a distribution channel and talk to its 120,000 members using its credentials as a trusted brand. I’m confident it can offer a compelling alternative to the remaining incumbents.

It’s not a done deal, I admit. In Jersey, the Jersey Competition and Regulatory Authority (JCRA) have launched a public consultation process giving consumers a voice on the proposed sale and launch of an MVNO. But it’s a significant step and I would hope it lands favourably. The authorities on Guernsey are also reviewing the proposed remedies from Sure.

As industry experts, we know that MVNOs have proven to be successful at driving competition. Currently in the UK, around a third of all customer acquisitions go to MVNOs or challenger operator sub brands and, historically, retail MVNOs have proven successful. Retailers are trusted, have a cost-effective route to market and the ability to innovate the proposition by aligning it with their core activities.

Tesco Mobile, the UKs biggest MVNO, has been particularly successful in this regard leveraging the Clubcard scheme and its “Super Market Mobile” credentials, similarly Asda Mobile, iD mobile (by Currys) Superdrug Mobile and even Your Coop Mobile offer are all available in the UK.

In Germany, Aldi and Lidl also operate MVNOs and we are seeing retail MVNOs as one of the more successful early entrants to the MVNO market in places like South Africa with brands like PNP (Pick and Pay) and Shop Rite Knect rated as ‘favourite’ brands these days. 

You could say that the outcome of the application for a licence is in the hands of the public. And I think that’s good. In my experience, the public will want choice and will favour the underdog to give them something the other operators can’t. Of course, the regulators need to review other aspects alongside, but I suspect gauging the public opinion will help sway the vote.

As the year unfolds, I think we should expect an historic outcome for the Channel Islands, and I’d recommend MVNOs watch to see how the move is executed. There’s a lot to learn from other markets, especially so in fledging ones.

If you’re thinking about launching an MVNO in a new market or need to drive competition with a differentiated offer, then call me. My team can help you appraise the market, negotiate the deal, and build the winning business model.

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My bets are a decision will come, and it will be to let it go through to phase 2. It’s a long process, probably running until the Autumn, and will be run by a second independent team, but it’s wholly worthwhile. I see no reason not to do the due diligence.

Phase 2 will get into the nitty gritty. Fundamentally, it will look at the market, the consumer interests and wider national infrastructure issues. Economic prospects will form part of it – jobs are always a thorny issue. I see that as an inevitable part and parcel of the market, and of course this deal, but I don’t think the CMA will say it’s a deal breaker.

Chinese ownership has also been cited as a barrier to merger, and parliament debated this on 14^th December 2023 (you can watch it here). It’s important to note that aspect is out of the hands of the CMA. Its remit is to look at competitive telecoms. The NPSA will have its say, I’m sure and it’s best we await their judgement.

I guess the big question is why now?

If like me, in your early working life you watched Vodafone emerge from above a curry house in Newbury, you’ll find this a fascinating tale of fortunes. How can the trailblazer be in a position to consider merging with the minnow?

Speaking on the record to both parties, the proposed deal is about scale. I have to agree that it is a necessity in the UK. The last few years have given birth to some hefty players. BT/EE and VMO2 are making returns, and Vodafone and Three will feel like they’ve been left in the cold.

For Three, the options are limited since the failed merger with O2. It needs this to work. Vodafone will argue it needs it too. But for different reasons – a merger is a steppingstone to acquisition (let’s not forget the 51.9% share it would have), and the share price needs revival.

A merger would stabilise market dynamics. But most importantly it will give the UK’s 5G infrastructure the capital boost it needs. £11bn is on the table and I’m doubtful consumers will be sold on the 5G dream until they experience it everywhere, every day. They certainly won’t pay any more for it until they realise more of the benefits the government wants for its UK ‘power-house’ credentials.

The real advantages for consumers and businesses will come from continuity of service and connectivity – promises associated to Digital Britain. With combined capital, RAN and spectrum sharing that a merger like this facilitates will give consumers better, faster mobile. That can and will drive market competition and challenges the network leadership of BT/EE. It all adds up to an enticing prospect for the government, which so desperately needs to prove UK ‘power-house’ credentials.

But for the CMA, it’s a case of weighing up whether stabilising the market today would eventually create a market imbalance tomorrow. Currently, VMO2 and BT/EE are benefitting from mobile and fibre bundling. A sticky proposition in a market that needs to retain customers to survive. Of course, these brands achieve it with their own infrastructure.

Sky, on the other hand, is performing extremely well in the market without the network overhead. Many forget this. But not Vodafone. It says Sky’s impressive customer base and market power is a cause for concern.

I’m not sold on this as an argument, but I do agree that Sky has logged some very impressive growth in a relatively short time.

There’s also the buoyant MVNO market, ready to snap at the heels of change. If phase 2 concludes in favour of a merger, then the publicity alone could prompt consumers to rethink their provider and look at the smaller more innovative brands. Add to this the teething problems all brands inevitably go through when they merge and consumers could be persuaded to leave either brand for a better deal, and better service, elsewhere.

That said, there’s also opportunity – I can see the likelihood that a merger would encourage more MVNOs to spring up. Largely, because there will be capacity to fill, and Vodafone will want to put the wounds of losing Virgin behind it and build credibility again. There could be some exciting deals to be done for any MVNO that wants to renegotiate terms or has intentions to start up. That’s another reason for the merger, as it could give rise to more equable MNVO shares across the market.

Overall, I’d say there’s more to rule in favour of the merger than against it. But of course, this is all pie in the sky until phase 2 concludes. And there will be firm warnings to anyone counting their chickens before they hatch. The CMA will follow a strict process and woe betide any party getting ahead of it.

As an outsider looking on, I’m prepared to sit on the fence for now. But if you really pressed me for an outcome, it will be that at the end of phase 2 the CMA waves the merger through.

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eSIM has been a huge talking point at MVNO conferences that I’ve chaired. Usually, the discussion has been related to predictions, and technology developments and adoption. But today’s move by Revolut makes it a leader of a trend we’ll see repeated.

Revolut is one of many brands who have seen the potential of eSIM and how it can be used to disrupt not just telecoms but its sector. Other recent brands targeting the traveller market include Easyjet and Uber. They are logical. Buy a ticket, buy an eSIM.

New MVNOs like Airalo (founded in Singapore but operating globally), Holafly (set up in Spain also operating globally) and Global Yo (headquartered in Mexico and combining entertainment too) are also in on the act.

But to see a bank take a slice of the action holds real power in terms of consumer value, and it is a true development in the market.

What’s happening, and why now?

Ultimately, these brands offer a cheaper and credible alternative to roaming with your existing mobile operator.

The idea of MVNOs providing roaming substitution is not new. The relatively high cost of roaming in 2012 meant that the GSMA singled it out as a key segment in its MVNO analysis.

A lot has changed since then, not least Brexit. When Roam like Home was introduced into Europe, into was to deal with bill shock and, as a result, the demand competitive roaming options all but disappeared.

Back then companies like truphone (now Global One and the company supplying the service to Revolut) invested significant sums, largely because it was a technically complex undertaking.

But now that technical challenge has gone. Firstly, voice and SMS for roaming are less of a ‘thing’, it’s all about the data and with the advent of OTT apps like WhatsApp and Facetime there really is no need to use your existing mobile number while roaming – people can contact you using data.

The second change is that eSIM is becoming far more prevalent.

That makes it much easier to add a data only eSIM (from one of the providers mentioned above) before you leave or when you land, or even while you’re in your Uber from the airport.

It’s simple, very cost effective and you can easily shop around for the best deal depending on which country you’re visiting.

Travel money with benefits

But what I find really interesting, is that Revolut is positioning this a benefit for its customers. And it is. It’s the killer combination of low cost and high value to the customer, making the decision to use Revolut for travel money a ‘no brainer’.

For a long time, I have theorised that industries like banking should put in place a discounted or free MVNO depending on how many banking products a customer has. It’s a useful and sticky benefit, not to mention it gives banks a route directly to the customer and probably helps with KYC and one-time passwords.

We have seen banking MVNOs spring up in Africa, a continent that boasts real leadership in ‘M money’. But not so much in Europe, and those that have launched, have always used it as a distribution-led offer, generally because they have an estate of banks.

However, today’s news shows the trend in eSIM is blowing this wide open for the digital innovators.

No surprises, but I am very excited about what we will see next. I predict a bow wave of partnerships and launches. What’s more, all this talk of eSIMs, almost makes me want to go on holiday!

If you need help bringing eSIM to market, developing your strategy and understanding how telecoms could help you monetise your existing customers, get in contact or send me a WhatsApp to +447799244962.

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For instance, the prospect of market consolidation in the UK mobile market, represents a seismic shift. MVNOs are already using this as a chance to review their strategy and seek out new opportunities and advantages.

Similarly, in markets issuing new licenses, there’s a chance for the application providers delivering billing or customer service platforms to grow their brand and assert their capability by becoming integral to the go-to-market strategy.

Of course, some brands have cause for concern in times of change. Digital start-ups are eating up market share and

leaving legacy providers in their dust. It’s a case of transform or die.

Yet, for all of these companies, it’s hard to communicate their value in a new world. It’s often not a skill-set they boast, and, as we’ve discovered, not something they have done for a long time. And why would it be if their brand has not experienced the urgency of competing in more dynamic economies, or at such high levels?

Prior to working with us, many have tried to identify the message they need to take to market. But it never gels. Usually because the proposed messaging has come from an internal view of the world. It’s clouded by what people believe to be true, and a mix of opinions that are not always consistent.

It can lead to a short sighted approach with little longevity in terms of how it will support the goals set out in the company strategy. And that’s if there is a strategy that reflects the changing dynamics.

It’s generally at this point that leaders have to accept they won’t arrive at messaging that will cut through, because the strategy is no longer fit for purpose. You can’t lead a company into change if the message you want to convey does not align with what you do and how you do it.

Messaging needs to come from insight. You must know your customers and prospects inside out, and ensure the messaging not only reflects what’s happening today but the direction the market is going. How will you serve those needs? What’s the gap? Can you do it alone? Do you need partners? What will you be famous for?

This makes messaging a cultural exercise as much as anything else. Amazon is clear that if you want to be the largest e-commerce platform in the world, you need people who are willing to take risks, fail, learn and thrive.

Are your people up to the job? Are they capable of meeting the demands of the company’s new strategy? Are they measured on objectives that achieve the strategic goal? Are they supported to become visionary? Are their behaviours a reflection of the company values?

As we start to work with leaders, it becomes clear to them that unless they understand the fabric of their company and how it translates to the market, they can’t address the company message.

That’s a brilliant outcome, albeit for some, unexpected. Having the bravery to accept strategy and messaging are intertwined, allows leaders to take great strides towards realising the ambition.

They can get the right team and skills in place. Focus on partnerships that drive the strategy. Adopt processes that underpin the company ethos and values. Build products and services that meet the customers’ needs and deliver marketing that drives the market demand.

We know, because we’ve got the clients to prove it.

If you find yourself leading a company through crossroads of change, then speak to us about how we can help you devise and deliver your plan.

The post When the market shifts, is repositioning your brand the answer? appeared first on Graystone Strategy.

The NCC’s commissioner Prof Umar Danbatta, has been reported as saying the licences, that each run for a period of ten years, are a crucial part of keeping up to date with industry developments and support ambition to roll out 5G, as well as introduce more competition and opportunity to run telcos in the fixed, M2M, B2B and rural sectors. Wholesale is also seen as a means to help balance the revenue loss that incumbents have experienced as more OTT players take a share of the pie.

As you’d expect with an MVNO model, the new MVNOs will use the networks of the existing operators, namely MTN, Globacom, Airtel and 9mobile.

Challenge brings opportunity

The challenges with such a vast country both in terms of land mass and geography, in particular the challenges of supporting mobile in outlying areas, are significant. The scale of the customer numbers also adds a further dimension.

However, it’s my opinion that there are enormous opportunities too. In fact, we advised numerous potential MVNOs in the run up to the process and submitted a report to the commission summarising the scale of the market opportunities, and the conditions that create a buoyant sector.

Every MVNO will be different addressing these varied challenges, offering services to different segments and regions. Vertical markets will also be targets – oil, tourism, and agriculture all present options for specific propositions. These propositions will include the deployment of private networks at large campus-based operations such as ports through to eSIM for tourists, and IoT / M2M solutions for heavy industry and agriculture.

All the licence applicants had a choice about how they wanted to run their MVNO and the technical investment they were prepared to make. The tiered system of licensing reflects this.

Licence tiers:

The licences are divided into five tiers, each one defined by the services and technology set up of the MVNOs. The specific definitions from the regulator are as follows

Tier 1: An MVNO within this tier leverages on its ability to offer services to its customers without owning any switching or intelligent network infrastructure. They do not control any numbering resources. Responsibilities lie with the host Licensee to provide wholesale capacity to the V.O for delivery of its products and services.

Tier 2: An MVNO within this tier assumes more control of the value chain which allows it to significantly differentiate itself from its host. The VO does not have Core Switching and Interconnect capabilities but can set up its own Intelligent network (IN) to provide their own IN services to the customer. It can own more of the customer segment than Tier-1 operators with the capacity of establishing its own Home Subscriber Register or Authentication centre, Equipment Identity Register, and Home Location Register, if it desires to.

Tier 3: Within this tier, an operator relies on its technical and commercial prowess to launch and operate a full core network with switching and interconnect capabilities. The VO relies totally on its host to provide Radio Access capacity at wholesale to deliver its products and services to its customers. The MVNOO can engage in interconnect agreements with other network providers. Revenue generation stems from both outbound and inbound calls which gives it full control over its tariff structure.

Tier 4: The operator within this tier is responsible for aggregating and/or Enabling MVNO services within the market. It relies on a model in which it stands as a middleman between the MNO and multiple MVNOs. The aggregator is responsible for purchasing bulk capacity from a licensed network operator, and reselling it to multiple MVNOs, therefore streamlining the process of negotiating capacity agreements with said network operators. The aggregator is permitted to choose what level of the value chain it desires to aggregate.

Tier 5: Unified Virtual Operator. In the simplest terms, an MVNO within this tier can decide the level of service it desires to offer ranging from Tier – 1 to Tier – 4. This gives the MVNO freedom of choice to deploy its services the way it deems fit if it still has a valid license. They can engage in “Shared Rural Coverage Agreement” within underserved and unserved regions.

𝗧𝗵𝗲 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝗮𝘄𝗮𝗿𝗱𝗲𝗱 𝗠𝗩𝗡𝗢 𝗹𝗶𝗰𝗲𝗻𝘀𝗲 𝗶𝗻 𝗡𝗶𝗴𝗲𝗿𝗶𝗮

Tier 1

• Topit Virtual solutions Ltd

Tier 2 (Nine Companies)

• Routelink Integrated Systems Ltd
• Hazon Technologies Limited
• Asel Telecom Nigeria Limited
• Briclinks Africa Plc
• Pisi Mobile Services Limited
• Univasa Nigeria Limited
• Imose Technologies Limited
• Infratel Limited
• Telconix Networks Limited

Tier 3 (Seven companies)

• Amics Technologies Limited
• Zegtel Limited
• Telewyz Limited
• Siu Telecommunications Network
• Abrindex Nigeria Limited
• Metropolitan Consortium Nigeria Ltd
• IPNX Nigeria Limited

Tier 4 (Four companies)

• Imbil Telecoms Solutions Nig. Ltd
• Environmental Expressions Limited
• DMK Telecommunication Nig. Ltd
• Holla Tags Limited

Tier 5 (Ten companies)

• Systegra Technologies Limited
• Choffan Communications Limited
• Mab Consultant and Associates Ltd
• H & Y Business Global Limited
• Taima Technologies Ltd
• Global Communication Extension Services Ltd
• USK (S) Ventures International Ltd
• Paribas Communication Limited
• Fourth Industrial Skills Consult Limited
• Mobilise Communication Ltd

It’s very interesting to see that the majority of licensees have opted for the flexibility of the Tier 5 licence, or the opportunity afforded by a Tier 4 MVNA licence. With only four host networks and over 30 MVNOs to enable, it’s likely that those with an MVNA licence will be in strong position to enable on behalf of network operators keen to outsource the complexity of running multiple MVNO relationships.

It’s an extremely exciting time for this market, and there will be opportunities not just for the MVNOs, but also for parallel industries, including data insight, billing, marketing, and mobile application providers.

If you are one of the MVNOs licensees that wants to out compete the market from day one, or you’d like to understand how your application business can get in on the act, then get in touch to find out how Graystone Strategy’s MVNO launch expertise can help you achieve success. Our blog on “The five MUST DO actions Nigeria’s new MVNO licensees should take for a successful launch” must do to deliver a successful go to market launch is useful further reading.

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But it seemed to pose more questions than it answered, not least for iD Mobile, the Dixons Carphone MVNO.  The team there had to put out a statement to confirm that the deal doesn’t impact the iD brand or its agreement with Three, the network behind the MVNO.

Of course the big question is why Vodafone, and why now?

Over my wholesale career I’ve had dealings with both of the brands and I can see a plan in play. Yes, you might think this is a last throw of the dice from Curry’s but actually it’s savvy on the part of Vodafone.

Why’s that? On the surface, you could argue that Vodafone had exclusivity already. All the other operators had abandoned Carphone Warehouse, which had significantly impacted its ability to offer impartial advice.

But you have to consider that Vodafone is likely to be playing a long game. Firstly, it knows from experience that this channel has the potential to drive connection volumes and there is no doubt that the Currys brand still captures a lot of footfall and web traffic.

Secondly, in its distant past it left CPW only to return later. The press coverage back then asked if the brand would last. It clearly did. And that’s why Vodafone’s strategy is so interesting. Could the exclusivity be a smart way to ensure others can’t get in if the channel continues to perform? I’d wager the conversation has been had.

Then of course there is the brand and product fit. Curry’s customers are likely to have more in common with the Vodafone core consumer demographic, and when you factor in the Vodafone ‘V’ smart devices you can see some real synergies. It certainly makes more sense as a retail partnership than the retail trial O2 announced with Next back in 2019.

And speaking of the long game, let’s speculate for a moment that maybe Vodafone is thinking that over time it may be able to win the iD MVNO business. It certainly measures up well. It has a substantial customer base and is proving its value in the market. It targets a different market to Vodafone so passes the incremental customer test any MVNO goes through when being assessed by an operator. It would also give Curry’s customers another choice.

Those with you that have been around a while will remember that Vodafone and CPW had an MVNO in the past. So this deal, and recent market statements that confirm Vodafone’s commitment to MVNOs, makes me wonder if they could mount a bid to win the iD business from Three when the contract is up for renewal.

iD’s statement would suggest otherwise, plus there’s Voxi, Vodafone’s youth sub brand, to consider. Though we don’t know the full details, if the exclusivity deal includes Voxi then that presents genuine competition for iD and means it could potentially lose customers in the Curry’s channel.

I can’t see anything radical happening tomorrow, or even by the end of the year. But I wouldn’t be surprised if there’s more to this than meets the eye and we find ourselves analysing more exciting moves with these brands in the future. For now, there will be much to do to make the new partnership work and hit the numbers.

My overall sense on this is one of encouragement – it’s good to see that telecoms is still important to Curry’s, and there’s long-term intent to make its mark in the market. And if nothing else, it continues to give consumers choice, shareholders optimism, and provides relief for iD.

Do you have questions about the deal? Think you need to run a strategic review or recut your segmentation as a result? Drop me a line, I’m happy to give you my perspective and some strategic counsel.

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To think Britain no longer has an independent large brand for mobile sales on the high street seems unthinkable. But it’s happened. Once the brand than operators fought so hard to get in with is now lost and forlorn.

The writing has been on the wall for a while. Networks have filed out the door. Branches have had to close, the Irish operation pulled altogether.

My immediate thought was for all the people who now join the job market. And I hope operators, distributors and vendors will see the value they can bring to their operations.

For consumers this is bad news. It’s bleak on the high street. There’s now next to nothing in terms of choice for consumers. The few electronic retailers that there are pose no real threat to the operators. Customers won’t have an easy task of shopping around especially if they are the high percentage of people who still like to touch and feel a real phone before making a decision.

You’ll also have to weigh up the sales pitch – four operators each with different and conflicting sets of advice. Of course we all know CPW wasn’t truly independent given the sales incentives and targets. But in its heyday, it did offer relative impartiality and give consumers space to make a choice.

Looking at the market now, it’s my opinion it won’t be long before Curry’s winds down its mobile category. It’s not really got the right ingredients, environment or brand, to appeal to the more mobile savvy consumers who probably still prefer some specialist assistance. It’s top of mind for the latest Samsung washing machine not the latest mobile.

But as an MVNO expert I have to also turn my attention to what it means for iD Mobile. It was a great business at launch and gathered pace well. But now, it’s likely to face the challenge of dramatically reduced customer acquisition. I expect there’s a frantic look by management going on, assessing how other channels to market, be it online or other retail partnerships, can shore things up.  Could it exit altogether? Don’t bet against it. Today’s news is a reminder of how tough things can get and the tough decisions market forces provoke.

And as for Currys? Well sadly it wouldn’t surprise me at all to see it going the way of Rumbelows and Comet. Yes, remember them? It’s a brand I hold a lot of affection for having been a store manager for Currys, Dixons and their CPW competitor The Link – a brand Curry’s exited from about 20 years ago. But it’s going to take a huge amount of effort to salvage.

It’s all a reminder that having a clear brand vision and focus on specific customer segments, as well as innovation in service is absolutely essential to thrive and grow.

If you’re interested in discussing what this means for your company, or need help with segmentation, and/or operational turn around drop me a line…..

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As extraordinary as it might sound, dotmobile’s MVNO is a first of its kind in Canada. As an outsider I really welcome the move by the regulator. It’s a glimmer of hope that the market, dominated by the Big 3 (Telus, Rogers and Bell), might open up to healthier competition.

How so? Countries like Brazil, Mexico, Georgia, Nigeria and Saudi Arabia have all recently granted MVNO licences. They join the more established markets of the UK, Europe and USA in recognising that it’s a way to diversify and build competition.

Canada however, has always been on the back foot in comparison. CRTC – the Canadian regulator – has long battled and acceded to opposition from the Big 3 who hold significant market power. It’s not even opinion – a recent report to the CRTC by the Canadian Competition Commission has questioned this power in retail and wholesale pricing. If the deal between Rogers and Shaw goes through, things swing even more in their favour.

Will CRTC block it? It remains to be seen but certainly there’s plenty of evidence to build a case as to why it could and should be blocked. The main concerns relate to price, competition, and rural coverage.

How bad is it? At the moment, Canada ranks 209^th out of 228 countries on cost per GB. The average price is USD 12.55/GB making it the most expensive G8 country, compared to USA ranked 188 with USD 8/GB and Italy ranked 4 with USD 0.43/GB*. Bringing prices down isn’t just about the Big 3’s willingness to, it’s also related to Canada’s landscape which makes it hard to deliver services into remote areas and truly cover the 38 million residents.

Yet, Nigeria, a country similar in size but with a population six times bigger, has managed it. There data is USD 1.39 / GB and ARPU is 13 times smaller than Canada’s – in Nigeria it’s under USD4 and in Canada it’s USD55. Even accounting for economies of scale, Canadians are probably getting a raw deal. And they know it too, that’s why NPS for telecoms customers in Canada is -75, I’ve worked in telecoms a long time and never heard of such a poor rating!

Is there any hope for consumers? Perhaps. Though not MVNOs, smaller localised mobile network operators such as Videotron, Freedom Mobile and Sasktel have found a way to operate competitively with far less economy of scale. The Competition Commission says that these “wireless disruptors” offer prices that are 35-40% prices than the MNOs.

What’s the hesitation then? PWC recently issued a report ‘Understanding the likely impacts of MVNOs in Canada’, which suggested the Canadian GDP would shrink by $10 billion (Canadian Dollars) in five years, reducing tax income by $2.5bn if MVNOs were introduced. That’s a lot of money for the regulator to stake. It also makes you question why, if MVNOs can do so much economic damage, so many governments and economies embrace them.

There is another point of view though. If people have more money in their pocket from paying less for their mobile, then it could create more disposable income. That’s more money being spent on other things and stabilising the economy. It’s a win-win for consumers, lower prices and more perceived wealth. Isn’t that something regulators should promote?

Could innovation spring from this? Yes. In my experience of working at MVNOs and MNOs, competition sparks innovation at the network level. Put your mind to it and you can be more effective and efficient if you use the network differently. You can also create different services and win customers on the strength of selling price plans people really want.

I’ve also seen competition lead to better rural coverage because you have to extend your reach to win more connections. It breeds product and service innovation that would not otherwise have happened.

That’s an important factor. At the moment 16% of all Canadian, and 63% of rural Canadian households don’t have access to a standard 50-Mbps internet connection. In Yukon, Northwest Territories and Nunavut there is no reliable access to that type of internet speed. We wouldn’t stand for that in the UK. In fact the UK government and all the major operators are currently collaborating and investing in rural coverage initiatives.

But what about the deal with Rogers and Shaw? In Europe, it would trigger regulatory intervention that’s for sure – the disallowed deal between Three and O2 in the UK a case in point. And when O2 and Three merged in Ireland, the regulator and competition authorities only approved the merger if two new full MVNO licences (where the host network has less technical influence the operations of the MVNO) were issued.

What’s likely to happen then? Well it’s a real test for the regulator. There will be renewed calls for similar intervention in Canada. Innovation in products and services, rural coverage, more competitive pricing, it all stacks up.

I’d therefore say that to ensure these outcomes for the Canadian consumer, and given the Competition Commission’s opinions on the existing market power of the Big 3, it’s time for the CRTC to look to other markets and consider similar or potentially more aggressive remedial action.

What’s the consequence if it doesn’t? I fear failure to do anything will erode trust in the process, and trust that the consumers’ rights are promoted and protected. And if that’s at the heart of a regulator’s remit then I’d say it’s a brave step to take but one that’s necessary, as I just don’t think the market, nor consumers, could tolerate it.

If you’d like advice on how this could affect your plans, or want to know more about the regulatory processes around the world then give me a call.

Source: Data pricing comes from Global Mobile data comparison 2020 https://www.cable.co.uk/mobiles/worldwide-data-pricing/

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