We supported Consumer Cellular in a successful sale by conducting a review of the US MVNO market and the senior citizen niche

The problem

• Our client was a major US mobile virtual network operator (MVNO), Consumer Cellular, who was preparing for a sale and needed to provide potential buyers with an overview of the US market, typical MVNO business models and assessment of the market niche our client addressed
• Consumer Cellular targeted the senior-citizen demographic using a necessarily unique operating model; it was important for potential buyers to fully understand this in order to assess the opportunity

The solution

• Analysys Mason leveraged its deep understanding of the MVNO model to create a comprehensive guide to this market in addition to Consumer Cellular’s particular operating model
• We also conducted a review of the overall US mobile market including, assessment of key players, competitive dynamics and market niches, and future growth expectations
• We assessed the senior citizen opportunity in the US including demographic breakdown, mobile phone usage and telecoms spending
  • we used primary market research from Analysys Mason Research’s Connected Consumer Survey, which is conducted annually and includes ~1000 respondents per country, to understand how Consumer Cellular’s business model and capabilities align with senior citizens’ requirements
• Finally, we conducted an assessment of adjacent opportunities for Consumer Cellular to target, including specialised tablets, independent living solutions, and telemedicine

Figure: Business to consumer mobile competition in the US - illustrative

The result

• We produced a report for our client which was shared with potential buyers as part of the sale process; as well as providing bidder Q&A support
• The process resulted in the successful sale of Consumer Cellular to the private equity firm GTCR for USD2.3 billion