Challenge from Virgin forces 3 UK to search for new MVNOs

With an ever increasing number of MVNOs and significant drops in revenues for major operators in direct consumer services many of these operators are battling to bring in new revenues by getting these virtual operators onto their 3G networks.

Offering many third party internet companies access to it network has become quite a well established fact of business for 3 UK on top of running its own mobile broadband services, although it is also looking at supporting partners like Skype as well as other operators as part of its future strategy.

News from a popular news site has advised that a deal has been made between MVNO aggregator x-mobility and 3 UK to sign new virtual partners, which will be able to deliver their own brand of broadband service using 3’s network.

This move is likely to be a direct challenge to Virgin Mobile, which is considered to be 3’s greatest rival with 3 million customers, according to speculation from a newsletter. The broadband network owned by T-Mobile is currently being used by Virgin Mobile to deliver its service and it has began to further challenge 3 by offering a new pre-paid dongle-based mobile broadband service.

Six new companies will be introduced by X-Mobility including Catalyst, which offers services to students and small businesses and iCard, that concentrates on the prepaid calling market. It is expected now that 3 will continue concentrating on the mobile broadband market whilst X-Mobility throws itself into prepaid voice services.

A quote from Phil Kendall, the head of wireless practice at Strategy Analytics said “MVNO prepay churn is very high, as it’s a base of users that aren’t remotely loyal to operators and will just go after the cheapest. Around three million Virgin Mobile prepay customers are up for grabs.”

Source – www.rethink-wireless.com