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Telecom provider "Vympelkom" moving operations online.

VimpelCom intends to boost its MVNO market share, currently below 1%, up to 25% by 2028. Plans include banking MVNO projects, collaborative efforts with internet service providers, and escalating network development investments by 15%. With operators on the T2 network dominating over half the...

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VimpelCom targets capturing a substantial 25% of the Virtual Mobile Network Operator (MVNO) market...
VimpelCom targets capturing a substantial 25% of the Virtual Mobile Network Operator (MVNO) market by 2028, despite currently holding less than 1%. This ambitious goal is expected to be met through initiatives in banking MVNOs, collaborations with internet service providers, and enhanced investments in network development by 15%. Notably, T2 network operators control over half of the market, and experts in the field do not anticipate a significant surge in virtual operators in Russia.

Telecom provider "Vympelkom" moving operations online.

Vimpelcom Aims to Dominate the MVNO Market by 2028

By 2028, Vimpelcom wants to take over a quarter of the MVNO (Mobile Virtual Network Operator) market share in Russia. To achieve this ambitious goal, the company plans some major moves!

According to their vice president for operator business, Sergei Bykov, Vimpelcom intends to partner with key players in the banking, retail, and tech sectors. They will also collaborate on a "partner convergent" scheme with internet providers, offering broadband services and mobile connectivity under a different brand. The idea is to strengthen their position in the MVNO market, expand their customer base, and integrate telecom services in adjacent industries.

With Russia hosting around 400-600 broadband operators who might want to add mobile services to their offerings, competition seems rife. To grab a 25% market share, Vimpelcom plans to ramp up investments in their own network by 15%. However, they've kept the exact investment amount under wraps.

Currently, Vimpelcom's MVNO market share stands at less than 1%. In comparison, other players like Yota hold 40%, T-Mobile garners 27%, RTK accounts for 15%, and Sbermobil takes 6%. Despite these numbers, Vimpelcom is optimistic about an increased share of the MVNO market, estimating it to be 9-10% of the mobile market (7.9% in 2023) with a potential growth to 13-15% by 2028.

So, what exactly are MVNOs, and how do they work?

MVNOs operate on the infrastructure of a classic telecom operator. Some argue they're a "niche story" because they can't develop technologically without comprehensive services within their ecosystems. However, VimpelCom might just buck the trend - they approach the MVNO market as an operational activity, turning it into a streamlined process. "If Vimpelcom decides to do something similar," explains independent telecom analyst Alexei Slutskin, "they have good chances. Their advantage is better coverage, while T2’s coverage is still not federal."

However, a source on the telecom market voiced doubts about VimpelCom's ability to capture such a large chunk of the MVNO market. "The plans sound unrealistic due to the existing market distribution, where two players lead, and there's no MVNO boom in sight," they said.

So, let's break down how VimpelCom could potentially seize the MVNO market share:

  1. Expand Coverage: Enhance network coverage and quality to ensure services are accessible to more customers across Russia.
  2. Compete: Offer competitive pricing models and innovative plans to attract customers from existing operators and other MVNOs.
  3. Partner: Form strategic partnerships with other companies to expand offerings and improve customer retention.
  4. Innovate: Invest in digital services and platforms to offer unique experiences and conveniences, such as mobile apps for service management.
  5. Data-Driven Insights: Utilize data analytics to better understand customer behavior and tailor services accordingly.

With these strategies in mind, VimpelCom prepares to shake up Russia's MVNO market! Let's see how the competition responds!

Oh, by the way, if you're wondering about market statistics, in 2023 MVNOs held 4% of the mobile market with 10 million active SIM cards, generating the equivalent of 38 billion rubles. Revenue for MVNOs grew by 17% in 2023, primarily due to an increase in the customer base of telecom operators integrated into banking structures.

Vimpelcom plans to partner with key players in the finance, retail, and tech sectors as part of their strategy to dominate the MVNO market by 2028, moving towards a "partner convergent" scheme with internet providers to offer broader services. To expand their customer base and integrated telecom services in adjacent industries, they aim to elevate their MVNO market share, which is currently less than 1%, and anticipate it to reach 9-10% of the mobile market in 2023 and potentially grow to 13-15% by 2028. In the industry's financial aspect, MVNOs generated 38 billion rubles in revenue in 2023, demonstrating an upsurge of 17% due to the growth in customer bases of telecom operators integrated into banking structures.

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