MVNO Market in Poland
As we mentioned in the previous post, the MVNO market in Poland is not very saturated and clearly lags behind other European countries. Despite the lack of formal barriers, launching your own mobile virtual network operator in the current market model required significant financial and time investments (not to mention the knowledge needed to operate on a complex regulated market). This probably directly contributed to several spectacular failures and a small number of real successes on the MVNO market in Poland.
MVNOs and subbrands
Let’s start by highlighting the differences between two often confused business models. MVNOs and subbrands are two different approaches in the telecommunications sector that aim to reach different market segments, and are often confused and identified with each other. MVNOs rent network infrastructure from large operators such as P4 or Polkomtel and offer their services under their own brand. Subbrands, on the other hand, are created by leading telecommunications companies as separate brands aimed at specific customer groups. For example, the Heyah brand is a subbrand of T-Mobile, aimed mainly at the younger generation of users. Miś Plusha allows Plus to reach young recipients, and Orange uses the Nju Mobile subbrand to acquire customers looking for simple and flexible telecommunications offers. Subbrands allow large operators to diversify their offer and better adapt to the needs of different market segments without having to create new infrastructure.
One of the main differences between MVNOs and subbrands is the method of management and operational independence. MVNOs operate as independent entities that have greater freedom in shaping their offers and marketing strategies. Subbrands, on the other hand, are closely linked to parent companies and use their resources and support. An interesting example of a subbrand is undoubtedly Orange Flex, which, through the management of services through an application and a subscription model, was to be an alternative to the classic Orange offer. There are well-known stories on the Polish telecommunications market when independent MVNOs became de facto subbrands as a result of taking control of the MVNO’s capital, e.g. in 2021 Polkomtel took over Premium Mobile, and in 2020 P4 purchased 100% of the shares in Virgin Mobile.
A short, but turbulent history of the MVNO market in Poland
The Polish MVNO market begins with the appearance of the first MVNO projects in December 2006 (mBank Mobile) and a truly crazy market share of 0.12% at the end of 2007. Since 2010, the MVNO share began to exceed 1% and gradually grew, despite the fact that at the very beginning in 2009-2012 7 MVNO operators ceased their operations. The share of virtual operators in the telecommunications market in Poland has never exceeded 5% and has stabilized at 3-4%.
Udział MVNO w rynku w latach 2016-2023 wg ilości użytkowników
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This situation was certainly not made easier by the lack of wholesale operators enabling the launch of full-fledged MVNOs, without the need for time-consuming and cost-intensive integration with structural operators in traditional models. And although the MVNO market was dominated by ISPs (Internet Service Providers), i.e. providers of internet to (mainly) residential premises, some MVNOs found their niches (such as FM Mobile or VikingMobile). However, looking at the long list of failures and the short list of successes, it must be admitted that the history of the virtual operator market was difficult even for projects that seemed to be a good basis for increasing the share of MVNOs in the telecommunications market in Poland (such as MyAvon, Carrefour Mova or GaduAIR) and seemed to define and hit their niches well.
What does it look like now?
The MVNO market in Poland is represented by 139 MVNOs (at the end of 2023), of which in 2023 there were 37 that acquired more than 100 numbers transferred from other networks and 17 that exceeded 1000 numbers transferred from other operators. Although the number of MVNOs has undoubtedly increased compared to the number of MVNOs at the end of the previous decade, the MVNO market in Poland still has a low share compared to other countries in Europe and the world, where this part of the telecommunications market has managed to achieve success.
Operatorzy MVNO z ponad 1000 numerów przeniesionych w 2023 roku
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The MVNO market in Poland is showing increasing dynamics, as confirmed by the number of numbers transferred to MVNO operators such as VikingCo, Vectra or CANAL+. The vast majority of these operators provide combined services, offering not only telecommunications services, but also internet, cable TV or other digital solutions. Such a business model allows for better adjustment of the offer to customer needs and increased competitiveness on the market, but these are only examples of using synergies. It is worth noting that MVNO operators are successfully attracting customers, which indicates growing consumer confidence in their services. The future of the MVNO market in Poland looks promising, with great potential for further development and strengthening its position on the telecommunications market.
Opportunities for the MVNO market in Poland
The MVNO market in Poland has many promising prospects ahead of it, which can contribute to its dynamic development. One of the main factors contributing to this is the growing demand for flexible and affordable telecommunications services, especially among younger consumers and small and medium-sized enterprises. MVNOs can effectively fill this niche by offering competitive prices and personalized tariff plans.
The introduction of new technologies, such as 5G, creates additional opportunities for MVNOs, enabling them to offer advanced services, such as fast mobile internet, IoT and cloud-based solutions. Additionally, thanks to the development of MVNE.PL, the risks and complications associated with traditional solutions operating on the market disappear.
Thanks to lower operating costs and more flexible business models in MVNE solutions, MVNOs can respond faster to changing market needs compared to traditional operators. In addition, MVNE.PL’s cooperation with large operators who provide their network infrastructure allows MVNOs to offer high-quality services without having to invest in their own network.
In summary, the MVNO market in Poland has many development opportunities ahead of it, thanks to the growing demand for flexible services, the introduction of new technologies and favorable regulations. MVNOs can play a key role in shaping the future of the telecommunications market, providing innovative solutions and competitive offers for Polish consumers, following the example of other European countries. Virtual operators can also support Polish entrepreneurs, allowing them to develop their business by enriching it with telecommunications services.
