Q2 2017 v Q2 2016

 

The MVNO market continued to see a high level of entry events in Q2 2017 (see MVNO Market – Q2 update), but how does this compare to the same quarter in 2016?

As can be seen from the diagram, the actual number of market entries is pretty similar Quarter on Quarter with 10 in 2016 and 9 in 2017. But the number of announcements of intention to enter has dropped from 24 to 20. This in itself is not necessarily indicative of lower market activity if the intentions to enter are more serious propositions. As we have stated previously, many intentions to enter are delayed by years or do not end up as a market entry for numerous reasons. These announcements are important as an indication of interest or activity in a particular market and because of the potential opportunities they present to vendors targeting the market.

As can be seen, the number of market exit events has dropped in Q2 2017 compared to Q2 2016 from 12 to 6. This comprises a drop in both acquisitions and exits due to failure or merger of business units. This is a more significant sign, as it indicates that the phase of weaker MVNOs leaving the market, while not over, is slowing.