Things we learned this week

Things we learned this week

MVNO-volution

Rok Mobile became the latest bright new American MVNO brand to enter the UK market this week. Operating on the Three network, Rok Mobile’s USP is the combining music streaming and mobile services. They are the second unknown US brand to come to the UK armed with a disruptive business model in recent months after FreedomPop announced itself with its Ryanair style business model. Whilst Rok Mobile were announcing its entrance to the MVNO space, Apple was busy denying it had any plans to do so. It shows how quickly the MVNO market is changing, whilst manufacturers have long been rumoured to have desires on the market, the entry of unheard of data centric brands is a new phenomenon. Examining what effect this has on the UK market will be fascinating to watch.

 

A £500m bet

British Gas’ owners Centrica handed a £500m war chest to its connected home division. The utilities giant has managed to sell 200,000 smart thermostats and clearly sees genuine growth in this market. It demonstrates how different this marketplace will be compared to mobile as it continues to develop. The scale of such investment is further evidence of the importance the connected home category has to industries beyond mobile; there are huge possibilities for those companies already invested in this environment. British Gas clearly believes that it can increase the money it makes from core services by adding these types of capabilities. The critical question for mobile companies is how they can involve themselves in these revenue streams.

 

HTC-change their game

HTC’s decision to target profitability over volume revealed how much the manufacturers market is changing. With the influx of more and more brands in the mid to low tier it is becoming harder for high end brands to compete. It looks set to become more competitive as new manufacturers enter this market segment. HTC have always done well in the high end of the market and it makes sense for the manufacturer to get even more from this segement.  

 

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