Virtual operators accounted for over a fifth (22%) of Belgian mobile customers at the end of Q3 2015, according to the latest edition of Telecompaper’s Belgian Mobile Virtual Operators Market report. The number of customers at MVNOs, including operator second brands and branded resellers, reached 2.94 million, an increase of around 1 percent from a year earlier. The growth was largely due to the two largest VOs, Telenet and Lycamobile.
The Belgian market counted a total 42 active virtual operators in Q3 2015, more or less stable year-on-year, after three players ceased their activities and four new providers entered the market. The market is dominated by a few large players, with the top five VOs accounting for 84 percent of customers. After Telenet and Lycamobile, the largest players are Ortel Mobile, JIM Mobile and Mobile Vikings. Telenet took a 33 percent share of the VO market in Q3 2015, while JIM Mobile accounted for 9 percent and Mobile Vikings 8 percent. The majority of virtual players operate on the Base network, but thanks to Telenet and Lycamobile, Mobistar has a much larger share based on customer numbers.
The dynamics of the Belgian VO market are expected to change following Telenet’s proposed takeover of network operator Base. If the deal is approved by regulators, the largest MVNO Telenet becomes a network operator, removing an important challenger from the market. The researchers expect that the wholesale market will also be affected, as Base has the most VOs on its network, while Mobistar loses an important customer in Telenet.
Telecompaper expects the regulatory approval of the takeover will require Telenet to maintain services to the wholesale market in order to sustain competition. This could provide an opportunity for MVNOs seeking better network terms or new players looking to enter the market.
