Macquarie Bank Is going to launch a mobile product in the telecoms market. This is an interesting development.. It doesn’t happen that often that an investment itself launches a mobile service, to be known as Nu Mobile. Even more remarkable is that it launches a niche mobile service known as a Mobile Virtual Network Operator (MVNOs). Such companies have been around for two decades but very few have been able to gain any mass market traction. In general, in the developed economies, all MVNOs together in one specific country, hardly ever get more than a 5% market share of the overall national mobile market.
This would certainly be the situation in Australia where Amaysim is the largest MVNO with around one million subscribers.
What of course is interesting is that the Bank is launching a recycled mobile phone service. Based on their financial interest in the smart phone market this would most likely be the link to why they are launching the service.
This will most certainly appeal to those people interested in circular economy. This potential market is growing and will have a large group of people interested in this movement, but overall this will still remain a niche market.
Separately such a used phone market can also be very price competitive and this could be another market that they will appeal too.
So overall a great ‘green’ initiative but it is doubtful if they will be able to reach a market size big enough for them to be of any real financial interest. Perhaps they will built it up and then sell it off to a company more aligned with niche market experience in the telecoms industry.