How dangerous is Iliad arrival for Italy MVNO’s?

There are still several months left to launch the new Italian mobile operator of Iliad scheduled for the end of 2017, but already it can be felt: the return of price war between operators and the launch of new low-cost MVNOs. Find out more about Iliad Italy below.

Surely Iliad’s arrival could create some problems not only to the three main network operators (Wind Tre, TIM and Vodafone) that also have the resources to withstand a huge loss of customers, but above all to those many virtual mobile operators that today will not be able to respond to any very aggressive deals.

Lack of access to real call costs, SMS and data traffic and recent Roaming regulations in the EU, with several virtual mobile operators forced to even apply for an exception to AGCOM (because that traffic made abroad by customers with active options “All inclusive”, the various CoopVoce, PosteMobile, Fastweb, Tiscali and so on aren’t helping…

French MVNO’s  vs Free Mobile iliad italy

According to special edition published a few months ago, the scenario that is emerging in Italy is in fact a true copy of what has already happened in France in 2012, with Orange, Bouygues Telecom and SFR against a new virtual mobile operator entrance into market.

But it has served little, if not to destabilize the other smaller MVNOs, unable to respond to the “price war” created and which did not limit the loss of customers of the three major French managers.

SOSH. The virtual mobile operator created by Orange three months before (October 2011) that Free Mobile launched its services in France had reached 28,000 customers at the end of 2011, reaching 90,000 in February 2012 (on the same date Free Mobile had already exceeded quota 1.5 million customers).

In the first quarter of 2012, Orange had lost 615,000 lines (net worth between incoming and outgoing carrier), which was unable to recover with SOSH. Thanks to its economical resources and particularly convenient rates, it has been able to grow by 3,342,000 customers in the first quarter of 2017 and become the virtual mobile operator with the highest number of customers.

RED. The virtual mobile operator of SFR, also created in October 2011, has never declared its number of customers, for many just to hide very small numbers. Only after the acquisition of what was the largest virtual mobile operator in France (Virgin Mobile) and its controlling company (Omea Telecom, also owner of other MVNOs), announce a total of 1.8 million Customers at the end of 2014.

B & YOU. It was launched by Bouygues Telecom in July 2011 with the aim of counter Free Mobile. Unlike the other two, B & YOU ceases to exist as a virtual mobile operator in 2014 and remains only as a brand for Bouygues Telecom’s low cost bundles / deals. At the beginning of 2014, it had 1.87 million customers.

The list of closures and acquisitions, from the launch of Iliad’s mobile operator to today in France, is unfortunately long.

As already mentioned, one of the first victims was Omea Telecom, a company holding Virgin Mobile (until 2013 was actually the fourth mobile operator in the country with its 1.8 million customers, struggling with difficulty on the arrival of Free Mobile), but also brands such as Breizh Mobile, Tele2 Mobile and Mobile Casino, acquired by SFR in 2014.

In the summer of 2012, Breizh Mobile also closes, passing all its customers to Virgin Mobile. It was the same year for Mobisud (specialized in international calls).

2012 also saw the closure of Carrefour Mobile (in autumn). Universal Music Mobile also ceases to exist, surrendering its customers to Bouygues Telecom. Darty Mobile is adding to this list of mobile phone market abandonments, selling brands and customers to Bouygues Telecom.

In 2013 Auchan’s mobile selled his own Auchan Telecom to Euro Information Telecom, the company that also has NRJ Mobile among its brands. In the same year, SFR (B & You) “virtual” prepaid customers are transferred to another SIMYO-owned MVNO.

In 2014, Zero Forfait was closed, whose founder – Patrick Gentemann – published an open letter to Xavier Niel (Iliad founder) in Le Monde newspaper in 2012 to remind him that he was not the first to have revolutionized the mobile market in France.

In 2015, Joe Mobile, a MVNO, which was born in 2012 to counter Free Mobile,  stop with activities (as well as the ethnic Ortel Mobile). In April 2017  Cofidis Mobile were closed, due to the low number of customers. And the list is definitely not complete. iliad italy

Italian mobile telecom market is going to be very exciting. And difficult for operators. Source



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