A mobile virtual network operator that purchases wholesale mobile services from top carriers & provides cellphone services under their own brand to end users is considering entering the energy (electricity & gas) space. It wants to become a “virtual” energy retailer and resell energy. What are some synergies from this move?
Rev:
1) Price: seller power
-Can charge more (if they are only one in market providing energy & telecom reseller services)
2) Quantity of sales:
-Cross-selling opportunity across consumer base
-Product bundling option
Costs:
1) FC:
-Consolidated IT/systems
-Consolidated labor, HR, customer service etc
2) VC:
-Buyer power: Reduce transaction fee (billing fee paid to credit card companies) due to higher volume of transactions from larger consumer base
-Commission: renegotiate commission structure with providers of electricity and telecom due to larger consumer base
-Economies of scale: better price for software licensing costs?
Anything else I could add given they aren't acquiring another company
(edited)