The MVNO market has matured considerably in recent years. With a flood of entrants into the fray, the market has blossomed, with a corresponding increase in the diversity of propositions. As a result, many traditional MNOs have explored ways in which they can launch offers that capitalise on momentum in the MVNO industry.
One approach for MNOs is to try and compete with MVNOs through campaigns targeted at given demographics. However, this may erode value from the core MNO brand and create a downward pressure on price and overall margins for the MNO. Alternatively, a completely new, or ‘second’, brand may be crafted to be more appealing to customers in different segments. A second brand can be a key strategic tool for securing the objective of reaching new customers and new segments, which cannot be accessed by the existing organisation. This paper explores the opportunities that can be afforded by the adoption and launch of alternative brands by MNOs.