The number of customers at virtual operators in the Netherlands rose 1.9 percent in the six months to end-September to a total of 7.3 million or 34.5 percent of the total Dutch mobile market, according to Telecompaper’s latest report, “Dutch Mobile Virtual Operators Market – Market Overview third quarter 2011”. Of the total, 57.6 percent or just under 4.2 million used operator-owned virtual (co-)brands. MVNOs operating independently had just over 3.0 million Sims, or 14.3 percent of the total mobile market, up slightly from a 13.9 percent market share in Q1.
The market remains dominated by a dozen virtual brands. The number of active MVOs in the Netherlands advanced to 62 at the end of Q3, with eight new entrants and three exits since Q1. Despite the crowded market, several companies launched initiatives. The market remains dynamic, with new virtual players entering the market and others still in testing phase. Major introductions included UPC and Ziggo which launched mobile data services for existing customers, Lycamobile which launched a third brand Toggle Mobile, three new MVNOs in the business segment, one new ethnic player and one MVNO in the no-frills segment. Meanwhile, Youfone acquired the customers of charity-focused MVNO Call4Care, and KPN announced a rebrand of recently acquired MVNO Atlantic Telecom to Telfort Business, from 2012.
The market is dominated by 11 virtual brands. Hi and Telfort, although losing customers, are the leaders of the operator-owned brands and total VO market, while Lebara and Lycamobile continue to lead the independent MVNO brands. In terms of network operators, KPN has the most VOs on its network, although it has lost some share in recent months. Both Vodafone Netherlands and T-Mobile Netherlands increased market share, with T-Mobile growing the most due to Simpel and Ben. While MVNEs share benefits of scale, enabling more VOs to enter the market, the majority of VOs are run directly with or by MNOs. However, new VOs mostly use MVNEs to enter the market.
The Dutch VO market remains vibrant with a total 62 players and more expected to appear. Still, the economic and regulatory environment will have a negative impact on some of them, particularly independent MVNOs. Some VOs may turn this into a positive effect if they can distinguish themselves by offering better and value-added deals. In a saturated market, growth will have to come from churn at other competitors, from finding untapped niches or introducing new, value-adding services. Another opportunity for a VO service is targeting an existing customer base, such as recent entrants from the supermarkets sector.
