Australian MVNO market overview – no longer just about price

Australian MVNOs have reached a market share of 13% nationwide, as competitive MNO offerings now appeal to value conscious customers

New network technologies and the commoditised mobile industry are increasing the competitive intensity

Differentiation and cross selling will become increasingly important for MVNOs to build and retain market share

MVNO market share in Sydney, Melbourne and Brisbane (%)

The Australian mobile market has long been dominated by just three Mobile Network Operators (MNOs) – Telstra, Optus and Vodafone Australia (VHA). The entry of Virgin Mobile in 2000 as Australia’s first Mobile Virtual Network Operator (MVNO) increased the competitive intensity in what was otherwise a consolidated mobile market. However, the growth path for Australian MVNOs has been long and hard. After almost 20 years, MVNOs account for 13% of subscribers (handset only) in the Australian mobile market, though over 20% in major metro areas.

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