Strategic review for a Western European MVNO to aid with the direction of the organisation

The problem

• Our client, a large mobile virtual network operator (MVNO) in a major Western European market, required a strategic review of its operations in the context of changing market conditions, including a planned merger involving its host network operator

The solution

• We worked as part of a consortium with teams of investment bankers, competition economists and lawyers to undertake a detailed strategic assessment
• We analysed the future of the local mobile market, the likely impact of increasing convergence, the implications of the proposed merger, and different technical options for the delivery of mobile, fixed and content services
• Together with our partners we developed a set of market scenarios and different strategic options for our client
  • we then modelled the financial implications for our client under each scenario and strategic option and formed a clear set of recommendations for our client
  • we set out expected financial performance and provided advice on the qualitative and quantitative challenges associated with each strategic option

Figure: Key themes and trends threatening the MVNO business model

The result

• Our recommendations were presented to the board of directors and taken into account when determining the future strategic direction of the organisation