Forrester reports:
"The much-hyped brand MVNO will reward only
those few firms with powerful brands, niche customer bases, easily
mobilised core businesses, and strong management support. The
unexploited device MVNO opportunity creates more certain value with
less risk - but fewer firms can pursue it."
Analyst Michelle de Lussanet added:
"While network operators don't like MVNOs,
most expect to host two MVNOs by 2004 and think that MVNOs will
contribute 6% of operating profits that year. We believe that
executives must snap out of their brand MVNO dreams; firms that
have spent hundreds of millions on marketing and customer service
to build their brands and earn customers' trust have far more to
lose than to gain from an MVNO play."
According to the report, few MVNOs will execute perfectly or
compete against mobile operators effectively using a targeted
market approach. Apart from direct financial loss, Forrester sees
the risks as being brand damage and loss of customers in core
product lines.
