Mobile virtual network operators in New Zealand

Mobile virtual network operators (MVNOs) buy wholesale services from mobile networks and sell them to customers.They can do this without needing to own or invest in network infrastructure.Often run by well-known consumer companies, MVNOs typically focus on price, branding and address niche markets or customer needs not fully serviced by the major carriers.Mobile as a brand extensionWarehouse Mobile is an example. It extends a retail brand into mobile services, focusing on low-cost, no-frills plans aimed at budget-conscious users.Small MVNO marketNew Zealand’s MVNO market is small by international standards: around two percent of the market. In Australia MVNOs are close to 20 percent of the market.Elsewhere in the OECD the share typically ranges from 10 to 20 percent.Despite their small size, MVNOs bring a degree of competition and innovation to the market without changing the underlying structure.Why MVNO uptake is lowIntense competition among the three major carriers leaves little…