How is MVNO:s changing MNO Acquisition & Retention - Slides
How is MVNO:s changing MNO:s acquisition &
retention and more…From a personal perspective
Freddy Lundmark, MVNO Products & Service Delivery Manager
May 14, 2009 at the MVNO Industry Summit 2009
The Next 25 minutes...
• Change of MNO Acquisition & Retention Strategies?
• Can both go after the same customers? Who will win
out and why?
• Richer Service Environment vs. Low-Cost-No Frills?
• Why does MNO:s negotiate at all?
MVNO Products & Service Delivery Manager
• Europolitan Vodafone
• Telenor Sweden
Understanding today's situation
by understanding the past...
• Original Wholesale Strategy
• Over-capacity - What a word!
"If you can't beat them - join
them and make some money on
it! Turn it into an profitable
Europolitan's orginal Wholesale "Strategy" in 2001
so that you know what I mean when saying...
• Mobile Virtual Operator (MVNO)
• Service Provider (SP)
What's the difference..?
• Freedom vs. Simplicity
• Investments vs. Pay-as-you-grow
• Term used will be MVNO for both
Where does this leave us now?
How is an MNO influenced by an MVNO?
• First reaction...
• Second reaction…
• Now – here we are. What do we do now?
Service Environment vs No-frills
How to do as MNO?
• Brand Power!
• What can I do that my virtual competitor can't?
• Brand preference?
• Is this our customers?
"It's in the long term a Dead-End
trying to emulate the No-Frills,
Low-Cost business model for an
What about the MVNO then?
What shall they do?
• Yes! It is important!
• Emotional Driven Business Decisions
• Help the Wholesale Department to Convince
• Confidence and trust is very important
Can Both Go After The Same Customers?
Who will win out & why?
• Yes & No
• Yes - It's possible
• No - It's not good business
"Hey There - Come to us! We are
on xxx: network - the same
network as you have today! You
will have the same network
feeling and coverage as today
but you will pay less!"
Real World argument heard from on an MVNO
“We don’t believe in our Brand
Strength and Core Proposition
ourselves either so let’s do a
copy-paste on our host and use
their Brand Strength"
"You want some more
functionality. OK! - Tricky, lot to
do internally - Can't promise
By the way - your Wholesale
prices must be increased due to
market fact A, B and C. Don't
call us - We'll call you!"
“The MNO will probably always
win this kind of battle - they
THE MOBILE NETWORK!” 16
It takes two to Tango!
• Who's your customer
• Get to know them inside - out!
• Team up with small MNO
• Money & Time
• Long-Lasting partnership
It takes two to Tango!
• Trust your Brand Strength
• Myth of Cannibalization
• Is my Brand the right Brand?
• Is someone else doing this better than me?
MVNO:s as a Pressure Group
Why does MNO:S negotiate?
• Early Stage - Window of Opportunity
• Grow Base in mature market = Buy Customers from
• Money Talks
• Bottom Line
• Business on the Margin