Wednesday, 18 November 2009

Neglected regions to get Magyar MVNO (Postafon) – Hungary

Magyar Posta, the state owned national postal service for Hungary, has become the latest MVNO to launch. The service partners with Vodafone to target geographic regions where there are no existing sales outlets for mobile services. The move will see Magyar target what are potentially new customers to the market who have been previously neglected by the main players due to insufficient potential returns. By utilising its existing branch network the roll out cost to Magyar is similar to adding a product to its shelves, compared to MNOs having to employ staff and rent retail outlets. The service will be available at over 700 of Magyar’s branches.

The launch of Magyar will also be Hungary’s first MVNO with the closest alternative non-MNO being djuice, a brand of Pannon (Telenor) which is an MNO. This launch is unlikely to open the flood gates to MVNOs due to the MNOs fears of cannibalisation of their existing client bases. The key to this launch is the regional targeting of areas without mobile outlets, which should see new business rather than churned business. The service is only targeting 70,000 subscribers in 2010.