Bouygues Telecom, KPN and Vodafone are hoping to
gain more than just market share by acquiring MVNOs
June 2024
Julia Martusewicz-Kulinska
Mobile network operators (MNOs) in the Czech Republic, France and the Netherlands have bought mobile
virtual network operators (MVNOs) in the past year. These deals have helped MNOs to gain market share and
have reduced market competition, alongside other benefits. For example, Bouygues Telecom has gained new
distribution channels by acquiring La Poste Mobile, as has Vodafone (Czech Republic) via its acquisition of
SAZKAmobil. KPN has expanded its ‘no-frills’ portfolio by acquiring Youfone.
The article is based on data from Analysys Mason’s DataHub in the European Telecoms Market Matrix and
European Country Reports programmes.
Bouygues Telecom’s position in the fixed and mobile markets will
be stronger following the MNO’s acquisition of the biggest MVNO in
France
Bouygues Telecom’s goal, as set out in its strategic plan, ‘Ambition 2026’, is to become the second-largest
MNO in France by 2026. Bouygues Telecom took a step towards this goal in February 2024 by announcing its
acquisition of La Poste Mobile for EUR950 million. Bouygues Telecom will buy out the existing shareholders
(La Poste (51%) and SFR (49%)) to take full ownership of La Poste Mobile.
La Poste Mobile currently offers fixed broadband services via a wholesale agreement with SFR alongside its
mobile offerings. The contract with SFR will remain in force until December 2026, at which point Bouygues
Telecom plans to migrate La Poste Mobile’s fixed broadband subscribers to its own network.
Once the deal is finalised, Bouygues Telecom’s mobile subscriber base will increase by around 2.3 million
users, and its mobile subscriber market share will increase from 20% to 23%. The deal will both strengthen
Bouygues Telecom and take a wholesale customer away from SFR.
The agreement will also significantly expand Bouygues Telecom’s distribution network; Bouygues Telecom
will have access to La Poste and La Banque Postale offices across France.
KPN aims to diversify its offerings and tap into the no-frills market
by acquiring MVNO Youfone
KPN’s acquisition of Youfone for EUR200 million was approved in March 2024. Prior to the acquisition,
Youfone was one of the largest MVNOs in the Netherlands, with a strong brand and competitive offerings. It
provided SIM-only, fixed broadband and TV services.
The acquisition will strengthen KPN’s position in the no-frills mobile and broadband markets. KPN will gain
around 540 000 postpaid mobile customers and around 55 000 broadband customers, thereby becoming the
Bouygues Telecom, KPN and Vodafone are hoping to gain more than just market share by acquiring MVNOs | 2
largest operator in the Netherlands in terms of the number of subscribers. Its mobile connections market share
will increase from 31% to 34%.
Youfone used KPN’s network as an MVNO, so customer migration should be smooth. The Youfone brand will
remain in place and operate alongside the existing KPN brands, XS4ALL, Solcon and Simyo.
Vodafone Czech Republic plans to acquire SAZKAmobil to expand
its customer base
Vodafone will gain around 200 000 subscribers following its acquisition of SAZKAmobil, an MVNO owned by
the Czech lottery company Sazka. This is equivalent to a 1 percentage point increase in Vodafone’s mobile
connections market share (from 25% to 26%). The deal was announced in December 2023 and was approved by
the regulator in March 2024. SAZKAmobil is the largest MVNO in the Czech Republic and was the first
MVNO to offer 5G network access to its customers. It offers cheap international calls to the EU, Vietnam and
China, and targets lottery players.
Similarly to KPN and Youfone, Vodafone already hosts SAZKAmobil on its mobile network. Vodafone will be
able to use SAZKAmobil’s well-known brand to enter niche markets such as online gaming and international
calling to Vietnam and China. Vodafone will also benefit from having access to Sazka’s points of sale in the
Czech Republic, of which there are more than 7500.
Acquiring an MVNO is about more than increasing market share
MNOs primarily acquire MVNOs to improve their market position (Figure 1). This is especially important for
MNOs that have recently lost customers. Many large MNOs increased their prices significantly during 2023 due
to high inflation and lost subscribers to price-competitive challengers and MVNOs as a result. They can reclaim
lost market share by acquiring an MVNO.
Figure 1: Mobile connections market shares of selected MNOs and their acquired MVNOs, Czech Republic, France
and Netherlands, at the point of acquisition
Bouygues Telecom, KPN and Vodafone are hoping to gain more than just market share by acquiring MVNOs | 3
However, there are other benefits related to MVNO acquisitions, which may lead to further such deals.
• Expand services to niche segments. Acquiring an MVNO can help MNOs to extend their coverage to
niche markets and address the needs of specific segments (for example, young people, senior citizens,
expatriates, tourists, ethnic segments and business travellers) without diluting their main brands.
• Improve revenue and other financial metrics. MNOs can benefit from increased revenue (due to an
increase in the number of subscribers) and lower subscriber acquisition costs. MNOs that acquire MVNOs
that already operate on their networks will be able to easily swap wholesale hosting revenue for (higher)
retail revenue with minimal additional costs.
• Limit risk related to new segment entry. MNOs that acquire an established MVNO can add value to their
portfolios with limited risk related to entering a new segment and addressing community-specific needs.
MVNO owners will also benefit. For example, La Poste will generate some revenue from its longer-term
agreement with Bouygues Telecom related to the use of the brand and distribution points, in addition to revenue
from the sale. The situation between SAZKA and Vodafone is similar; SAZKA will generate revenue from
Vodafone’s use of its lottery sales points.
The timing of MVNO sales may be related to network maturity. MVNO shareholders may need to renew
technology platforms for eSIMs and AI and may need new distribution models (related to eSIMs). They have
relatively small customer bases, and growth in the number of subscribers (aided by offering lower prices than
MNOs) may be hard to maintain in the longer term. A sale may therefore be the most attractive option.
