The report coincides with news from Ofcom that it does not intend to force further reductions in mobile phone charges this year. The regulator successfully initiated a reduction of about 30 percent in operators’ call termination charges in 2004, but these rates are set to expire in March 2006.
Alistair Brydon, co-author of the Analysys report published last week, predicted that the MVNO model will prove more successful with 3G than it has with second-generation GRPS and GSM services.
“The cost per minute or per megabyte can be lower, there is more capacity which the operators will want to fill, and higher-speed data enables more sophisticated services, such as music and video,” commented Brydon.
Currently only Virgin has made use of the MVNO model to offer 3G services, using T-Mobile’s network.
The UK’s mobile operators have a great deal of bandwidth to fill, so they are likely to choose partners that are able to provide a lot of varied multimedia content. The new MVNOs will also try to add value by offering a number of megabytes of music and video along with calls for prepaid monthly fees.
‹ www.analysys.com ‹ www.ofcom.org.uk
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