MVNOs in the Middle East: Saudi Arabia Emerges as the Largest MVNO market in the Middle East in 2015

Pages: 36 Published: March 01, 2016 Report Code: TC0045IR

Currently, ethnic models are the most prevalent MVNO business models in the Middle East, being adopted by 36.4% of the total MVNOs present in the region. This is followed closely by MNO sub-brands, accounting for 27.3% of all MVNOs in the Middle East. Major MVNOs in the Middle Eastern market include FRiENDi, Virgin Mobile, Renna and Lebara. Regulators are increasingly assessing the potential benefit of MVNOs in the mobile market. This is largely to support further liberalization efforts to boost price competition and service innovation. Further support for MVNOs in mobile markets is being addressed through reducing MTRs, harmonizing the tariff differentials between off-net and on-net voice traffic and implementing mobile number portability services. This will help to ease up barriers to entry for new MVNOs. Given the oligopolistic market structures of many Middle Eastern mobile markets the barriers to entry for MVNOs is relatively high. A key factor inhibiting the competitiveness of MVNOs in the region is regulation on tariffs. In many cases, MVNOs aim to offer discount prices for mobile services, however, in the Middle East, minimum price floors result in many MVNOs failing to acquire or maintain significant subscriber market share. Nonetheless, some MVNOs are taking innovative approaches to market entry, for instance, Virgin Mobile’s use of social media and digital marketing has enabled the MVNO to acquire a significant number of subscribers in Saudi Arabia since its launch in 2014.

Scope

‘MVNOs in the Middle East: Saudi Arabia Emerges as the Largest MVNO market in the Middle East in 2015’ report provides an overview of the MVNO market in the Middle East and covers a variety of business models adopted by MVNOs to target their local markets.

It consists of

• Definitions and MVNO business model explanations.

• Overview of global and regional MVNO market evolution, and analysis of common business models adopted by MVNOs in the Middle East.

• Case studies on key MVNOs in the Middle East, including an overview of key segment(s) targeted, market strategies and results.

• Key findings based on the study of MVNO business models in the region and a set of recommendations for mobile operators, MVNOs and regulators.

Reasons to Buy

Gain understanding of MVNO markets and their evolution in the Middle East, to identify market opportunities.

Align market strategies by analyzing the various MVNO business models being used by existing and new MVNOs in the Middle East.

Gain understanding of the competitive landscape and successful strategies, to strengthen your positioning in the market versus existing MVNOs.

Key Players

Virgin
Virgin Mobile
Friendi
Renna
YouPhone
Home Cellular
Cellact
MCI
Lebara
Omantel
Ooredoo
STC
Zain
Mobiy
012 Mobile
Rami Levy Mobile
Pelephone
Cellcom

Table of Contents

Introduction: MVNO definition and main business models

MVNO definition

MVNO business models

Global and regional MVNO market context

MVNO market worldwide

MVNO market in the Middle East

Regulatory context

Most prevalent MVNO business models in the Middle East

Market details: Case studies

Discount: Renna Oman

Niche, Ethnic: Virgin Mobile Saudi Arabia

Ethnic: FRiENDi Jordan

Conclusions: Key findings and recommendations

Appendix: Acronyms and Definitions

List of Tables

Exhibit 1: MVNO market structure

Exhibit 2: MVNO main operational business models

Exhibit 3: MVNO Models, including those used in the Middle East

Exhibit 4: MVNO business models

Exhibit 5: MVNO business models (cont.)

Exhibit 6: MVNO business models (cont.)

Exhibit 7: MVNO business models (cont.)

Exhibit 8: MVNO subscription market share by region, 2015

Exhibit 9: MVNO subscription as a percentage of total mobile subscriptions by region, 2015

Exhibit 10: MVNO subscription market share by country, the Middle East, 2015

Exhibit 11: MVNO subscriptions as a percentage of total mobile subscriptions by country, 2015

Exhibit 12: Regulatory drivers impacting MVNO markets

Exhibit 13: MVNO regulations in specific Middle Eastern markets

Exhibit 14: Number of MVNOs and market share per business model, Middle East, February 2016

Exhibit 15: Most prevalent MVNO business models in the Middle East based on their marketing approach, 2016

Exhibit 16: Non-national population as percentage of total population, 1990-2010

Exhibit 17: Examples of key Niche MVNO and MNO sub brand target segment in Middle East

Exhibit 18: Cellact Israel solutions

Exhibit 19: Main reasons to launch a retail MVNO model

Exhibit 20: Renna promotional offers, February 2016

Exhibit 21: Oman mobile industry KPIs, 2015E

Exhibit 22: Impact of MVNOs on MNO market share, 2008-2015

Exhibit 23: Renna subscriptions, Oman, 2011-2020

Exhibit 24: Examples of Virgin and FRiENDi products/services

Exhibit 25: Saudi Arabia mobile industry KPIs, 2015

Exhibit 26: Virgin targeted Facebook campaigns, 2015

Exhibit 27: Virgin/FRiENDi subscriptions, KSA, 2014-2020

Exhibit 28: Jordan mobile industry KPIs, 2015

Exhibit 29: FRiENDi’S prices on international calls vs. Umniah Jordan prices, February 2016

Exhibit 30: FRiENDi subscription market share, Jordan, 2011-2020

List of Figures

Exhibit 1: MVNO market structure

Exhibit 2: MVNO main operational business models

Exhibit 3: MVNO Models, including those used in the Middle East

Exhibit 4: MVNO business models

Exhibit 5: MVNO business models (cont.)

Exhibit 6: MVNO business models (cont.)

Exhibit 7: MVNO business models (cont.)

Exhibit 8: MVNO subscription market share by region, 2015

Exhibit 9: MVNO subscription as a percentage of total mobile subscriptions by region, 2015

Exhibit 10: MVNO subscription market share by country, the Middle East, 2015

Exhibit 11: MVNO subscriptions as a percentage of total mobile subscriptions by country, 2015

Exhibit 12: Regulatory drivers impacting MVNO markets

Exhibit 13: MVNO regulations in specific Middle Eastern markets

Exhibit 14: Number of MVNOs and market share per business model, Middle East, February 2016

Exhibit 15: Most prevalent MVNO business models in the Middle East based on their marketing approach, 2016

Exhibit 16: Non-national population as percentage of total population, 1990-2010

Exhibit 17: Examples of key Niche MVNO and MNO sub brand target segment in Middle East

Exhibit 18: Cellact Israel solutions

Exhibit 19: Main reasons to launch a retail MVNO model

Exhibit 20: Renna promotional offers, February 2016

Exhibit 21: Oman mobile industry KPIs, 2015E

Exhibit 22: Impact of MVNOs on MNO market share, 2008-2015

Exhibit 23: Renna subscriptions, Oman, 2011-2020

Exhibit 24: Examples of Virgin and FRiENDi products/services

Exhibit 25: Saudi Arabia mobile industry KPIs, 2015

Exhibit 26: Virgin targeted Facebook campaigns, 2015

Exhibit 27: Virgin/FRiENDi subscriptions, KSA, 2014-2020

Exhibit 28: Jordan mobile industry KPIs, 2015

Exhibit 29: FRiENDi’S prices on international calls vs. Umniah Jordan prices, February 2016

Exhibit 30: FRiENDi subscription market share, Jordan, 2011-2020

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