More Competition More Choice

There are often concerns in sectors such as telecommunications that there is not enough competitiveness in the marketplace. An example of this can be recognised in America where customers lose out because just about the whole nation uses one of two businesses for mobile connections, thus giving no real incentive for the companies to keep down prices.

In recent years in Europe several efforts have been launched by legislative bodies to intensify the level of competition. This started by forcing some large mobile network operators (MNOs) to permit new phone operators to use their networks.

The main benefit for the MVNOs (that would be mobile virtual network operators) is that they are able to in theory spend less by not being required to invest in all the improvements in network hardware.

The downside, on the other hand, is that one is largely reliant on the MNO for one’s own services, and by extension, on the local legislative to guarantee that one is treated fairly and that you aren’t forced to pay a lot for permission to operate on the network.

The point of MVNOs is that they provide a service to smaller, niche markets, and increase competition. As there are a lot of specialist markets around and promising market conditions at present there are more or less 650 MVNOs worldwide, overseen by 515 different enterprises (for advertising reasons, a number companies operate a range of different MVNOs within the same region).

More recently MNOs (the companies who run the networks) have started to notice a market advantage from MVNOs operating on their systems, as this in a roundabout fashion means they have a greater share of the market, as a result this has further encouraged the development of MVNOs.

For us it’s all encouraging news, as little businesses working with small markets can make a living. For example, MVNOs are the main companies worldwide who offer international calls, and a growing percentage of the best value pay as you go companies also don’t have their own network hardware.

Ultimately, anything that increases competition is good for the customer, so let’s hope things continue to go well for MVNOs.

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