MDS has announced the launch of three new services for retail Virtual Network Operators (VNOs) looking to expand their mobile networks and bring better product offerings to their subscribers. Strategy and product management, customer engagement and analytics, insight and assurance have all been added to MDS’ product portfolio to assist retailers in evolving their mobile offering.

MDS recognises the challenges that retailers are facing. The opportunities for a traditional pre-pay virtual network operator are declining because the traditional VNO is a highly restrictive offering, with little room to design flexible services, and topping up is a constant reminder of the cost of pay to play. 

Consumers are also becoming more sophisticated in what they want from their mobile offering and the one size fits all approach is no longer working. The prepay market has contracted by 6% per year (CAGR) over the last five years, which is more than eight million consumers leaving prepay in an overall mobile market that continues to grow. 

Erick O’Connor, the managing partner of telecoms consultancy Piran Partners, explained: “Retailers have three fundamental challenges to address in order for their mobile offers to be successful. Firstly, they need to be relevant to their shoppers. A simple price lead offer on prepay no longer has appeal in the context of a shrinking prepay market. Secondly, they need to integrate their offering into the weekly shopping relationship that they have with their customers, driving both categories and increasing brand engagement. And thirdly, they need to change their view of mobile as a product line to be sold in store and instead seek to use it to build challenger propositions that drive their whole business.” 

By outsourcing to MDS, retailers can benefit from much more than just reduced cloud IT costs, the company claims. MDS says it can help retailers to build a branded digital service which supports their business, by contributing to the product development roadmap to reduce time-to-market and improve revenues, leaving retailers free to concentrate on their core business by handling complexities like legacy service migrations.

“The retail-branded mobile network is not just another product,” commented Gary Bunney, the chief executive of MDS. “We see a tremendous opportunity for European retailers to leverage their brand and improve shopper loyalty to create better revenues. MDS has developed the insight and experience in the European mobile marketplace and can provide today’s retail brands with strategies to take them beyond declining pre-pay services to providing enriched retail experiences by expanding the mobile proposition.”