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Market Opportunity Exists for Enterprise MVNOs but Industry Targeting, M2M, and Value-Added Services Critical for Success, According to ABI Research


Market Opportunity Exists for Enterprise MVNOs but Industry Targeting, M2M, and Value-Added Services Critical for Success, According to ABI Research

Wireless communications and mobility applications and services are permeating the enterprise, but the fragmentation in hardware, software and suppliers makes implementation and management of wireless and mobility a huge challenge. According to ABI Research the time is right for an enterprise MVNO if they target the right industry verticals.

Says enterprise practice director Dan Shey:

“Successful enterprise MVNOs need to target not only the right industries but also offer a range of value-added services – services for which they have more control and offer greater margins.”

Value added services include telecom expense management, mobile device management and mobile application development and management services. Analysis shows that just these services can contribute as much as 25% of revenues per employee. Revenue contribution rises as high as 34% when M2M connections and management services are added.

Industry verticals that provide opportunity based on their mobility and M2M needs include utilities, transportation and warehousing, finance and insurance, and healthcare. B2B MVNOs have a smaller addressable market but can glean higher margins. B2B2C MVNOs have a larger addressable market. For example, a healthcare MVNO targeting seniors has a worldwide addressable market of nearly 600 million sexagenarians in 2010 rising to over 1.1 billion by 2050.

Shey concludes:
Brazilian insurance company Porto Seguro is an example of an MVNO that could be very successful. They are an M2M MVNO for their car insurance customers and are adding personal mobility services for its employees and customers.

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