Challenge the oligopolistic nature of the telecom sector
Tangible benefits for the end-consumer, small and large businesses alike
MVNOs challenge the oligopolistic nature of the telecom sector by offering fair and best value deals in their local markets. Reports have demonstrated that the entry of MVNOs on some European markets has boosted competition in the sector, resulting in many tangible benefits for the end-consumer (both in terms of lower prices and innovation). MVNOs can also be an effective remedy to market concentration. Indeed, markets where there is a lack of competition, competent national regulators/authorities can require MNOs to grant MVNOs access to their network. This has for example been the case in Austria after the merger between Hutchison and Orange. When Orange Austria vanished, prices significantly increased until one of MVNO Europe’s members launched a new business named ‘HoT’ (Hofer Telekom) which triggered a substantial and sustainable decrease of market prices.