The Emergence of Mobile Virtual Network Operators (MVNOs): An Examination of the Business Strategy in the Global MVNO Market

To assess the strategy adopted by the mobile virtual network operators (MVNOs) and the factors that affect the development of this mobile market, this study analyzes the MNVO sector from 2 perspectives: the exogenous factors including the consumer, industry, regulation, and technology characteristics; and the generic strategies that have been adopted by successful MVNOs in various Organization for Economic Cooperation and Development markets. Although cost leadership was found to be most prevalent initially, as the mobile market begins to be infused by high-capacity networks and value-added services, MVNOs are more inclined to apply multiple generic strategies and non-price competition. The strategies of differentiation and focus are practiced in addition to, not in place of, the cost leadership strategy. This study also found that countries with higher third-generation (3G) license fees tend to have higher levels of MVNO development, suggesting that the economic pressure created by the high 3G license fee might contribute to the deployment of MVNOs in a country. ACCESS TO FULL TEXT