Sunday, 29 November 2009

Orcon deciding on host MNO – New Zealand

Broadband ISP Orcon has been in the news this week in regards to their planned MVNO. The company has been consulting its existing subscriber base looking to find out how to win them over to a mobile service with Orcon, as opposed to their existing suppliers. Nothing has been formally set out by Orcon and even the host MNO is being debated.

Orcon already has a mobile network agreement with Vodafone to host the MVNO. However, Telcom recently announced that it would be wholesaling its new XT network. Telcom is also the fixed line supplier used by Orcon to provide their broadband offering.

Orcon’s Head of Marketing, Duncan Blair, has been quoted by Action Media saying: “I guess we could have launched a while ago with plans like the other MVNOs have done. It would have been quite similar to what’s in the market and I guess we didn’t feel like that’s very Orcon, if you like. We like to do things a little bit differently as you know.”

Being an early mover can be a good move for any new MVNO; it is better to hit a market with few competitors than to be the 30th entrant. However, the decision to hold back is a good one. Far too many MVNOs launch services on the basis of thinking they are great or by offering what is a cheaper alternative (for the time being) to the competition. Inevitably such a weak marketing strategy leads to failure and elsewhere the concept of multi-play offerings has failed to gain traction.