3G will mean more Virgins

With 3G now available from most of Europe's heavy-hitting operators, it seems third-generation technology could also mean a rash of Virgin-style operators springing up.

According to a new report by consultants Analysys, The Future of MVNOs in the 3G Era, 3G will mean MVNOs (mobile virtual network operators) will start to grow their portfolio beyond the traditional meat-and-potatoes voice and text plans.

Niche players offering downloads and data services are likely to be the biggest growers, with Universal Music already planning an MVNO in France and sports news and content firm ESPN on track to do similarly in the US.

According to the report, the increase in capacity brought by 3G networks will also mean the number of MVNOs will increase, with traditional operators sizing up appropriate virtual bedfellows to find the best fit.

The sector has already seen some activity of late, with easyGroup boss Stelios Haji-Iannou launching his own no-frills offering to compete with similar offerings from Tesco and Virgin. According to Analysys, there are already 100 MVNOs in operation in western Europe already.

A separate study by analyst house Yankee Group recently predicted that the MVNOs will generate $10.7bn in service revenues by 2010.