Slicing up the virtual pie

Internet bank Mbank has begun offering virtual mobile services, making it the only company operating in this field, despite the fact that 126 firms have received permission to exist as MVNOs.

"Market penetration is already quite high, and possibilities to pick up new clients are diminishing. Thus it is crucial to find new means to earn profits, and one of them is to have an MVNO," says Konrad Gruda from Deloitte.

Polkomtel has already announced it will sign new contracts with two or three MVNOs this year, and Avon, PKO BP and others are already in line to start their own MVNO operations. All of them want a slice of the zł.20.5 billion mobile-service market.

Experts believe the appearance of new brands will not provoke any price changes. "In Poland the mobile telecommunications market is balanced, thus I doubt whether MVNOs will cause a significant drop in prices. For clients, the biggest benefit will be the personalization of services," says Gruda.

This is precisely the tack Mbank is taking, with offers for clients who decide to buy cheaper mobile voice and video services, as well as offers of internet access, free minutes for paying via Mbank cards or taking loans. In 2007, it is also going to integrate its mobile and banking services.

It is still unknown what Avon, PKO BP and other upcoming MVNOs will offer their clients. However, experts claim the only way to achieve success is to focus on a narrow target audience.