The number of active mobile virtual operators in the Netherlands reached 52 at the end of Q3, up by five from the end of Q1 2010, according to the latest research from Telecompaper. The vast majority of VOs continue to focus on postpaid offers, although around two-thirds of all VO subscribers are still on prepaid plans. The number of VO-enabled customers increased slightly to a total of 3.2 million, up 4.9 percent from Q1 2010. The share of VO subscribers in the total mobile market increased to 16.3 percent, versus 15.5 percent at the end of Q1 2010.
The market researcher expects the MVNO market to remain dynamic in 2011, although the economic crisis and tariff regulations could lead to more exits. However, the market remains an attractive business opportunity, especially for those providers able to offer new concepts and value-added services, create new niches or working from an existing customer base. Telecompaper expects more new entrants, noting these will have to distinguish themselves with "real value-added services, and not just plain voice and SMS services, in order to survive".
The market remains dominated by the same five players: Lebara, Lycamobile, Tele2, Ortel and AH Mobiel. Lebara is still market leader overall, while Lycamobile took second place from Tele2, which continues to lose customers. In terms of network operators supplying wholesale access for the VOs, KPN continues to lead with more than two-thirds of the total VO customers. T-Mobile Netherlands lost market share year-over-year to Vodafone Netherlands, which increased its market share substantially. Ethnic remains the largest and most saturated and competitive market segment, with almost a 50 percent share of the entire VO market. Lebara is still the largest VO in the ethnic segment. The newly launched retail MVNOs (Deka Mobiel, Aldi Talk and Kruivat Mobiel) are performing well, allowing the fourth-largest retail segment to enlarge its market share.
Telecompaper assigned each VO a rating of one to five stars, based on the three criteria base, portfolio and reach. These show that the Dutch VO market remains skewed towards the lower end, with 30 players having less than three stars. The three- and four-star players seem to have a more stable business and consist of 22 players. Six of these players have four stars and include companies such as Lebara, Tele2, Ben and Simpel.
