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2nd July 2008
Majority of MVNO gains will be outside Europe
Subscriptions to mobile virtual network operator (MVNO) services will reach 150 million worldwide by 2013 with 58% coming from outside Western Europe, according to new research from Informa Telecoms & Media. This will represent 3% of the total global mobile subscriptions.
Despite its relatively modest share of the global mobile market, the MVNO sector remains robust, according to Paul Merry, senior analyst at Informa Telecoms & Media and author of a new report, Future MVNO Strategies: Customer Segmentation and Market Evolution. The sector has been buoyed by the development of sophisticated segmentation strategies developed by MVNOs as a mechanism to survive in highly competitive and penetrated markets, according to Merry. Indeed the variety of approaches taken by new entrant providers, which range from loss-leader approaches to using the MVNO model to deliver a full suite of customer telecommunication service options, creates numerous ways of evaluating and defining success beyond the number of subscriptions captured.
Several sub-segments have developed with specific targeted strategies created to reach the particular audiences involved. As part of its analysis Informa Telecoms and Media identified nine major MVNO service approaches including discount, community, MNO emulating, premium VAS, FMC, advertising and loyalty, enterprise, LBS and telematics approaches. Discount and community orientated approaches will dominate over the forecast period delivering approximately 55% of total global MVNO subscriptions by 2013. Part of the reason for this dominance is the fact that many discount MVNOs are pursuing multiple-SIM strategies. This is aimed at capturing market share quickly.
MVNO Update 30 June 2008
Full Oman license for FRiENDi
FRiENDi mobile received its full license from the Ministry of Transport and Communication in Oman, according to AMEinfo. FRiENDi is operating out of a newly constructed office is based in central Muscat.
FRiENDi is looking to establish MVNOs in 16 countries across the Middle East and North Africa.
Contacts:
Mohamed Bin Yousuf Bin Alawi, Chairman
Antti Arponen, CEO
MVNO Update June 2008
The Turkish Telecommunications Authority has included the Mobile Network Virtual Operator (MNVO) project in its plan for the second half of 2008, according to Ekonomist, the weekly business magazine.
MVNOs are expected to receive licenses in June 2008 and will be able to use the infrastructure of one or more GSM operators. Global telco Effortel and local companies Vegatel and Koçnet reported to be interested in setting-upMVNO operations.
The Telecommunications Authority Law enabling the establishment of MVNOs is to be ratified by Parliament soon.
For more information about MVNOs and their operation, visit MVNO Directory.com.
MVNO Update 15 May 2008: FRiENDi gears-up for launch
The Middle East and North African regions have still to host MVNOs, with the notably exception of Virgin Mobile South Africa, but one operation is making plans to launch. The UAE's FRiENDi mobile has just announced that it has contracted with India’s Tech Mahindra in regards to its MVNO software.
Tech Mahindra will enable FRiENDi mobile to attain the next stage of its MVNO infrastructure development by providing MENA-wide implementation of FRiENDi mobile’s ERP, Business Process Automation, Reporting and Web Self Care systems, as well as state-of-the-art community-based applications and value-added services.
Commenting on the deal, FRiENDi mobile’s CTO, Kim Askjaer, said: "The mobile sector in MENA is in the Infrastructure Competition phase, and ready for the natural next step to Service Competition, where MVNOs become an integrated part of the national telecom markets. A streamlined and well-integrated IT infrastructure is key to provide efficient high-quality services to our customers and Tech Mahindra’s expertise in telecom was a determining factor in our decision".
Recently FRiENDi obtained licences to launch an MVNO, with a licence being awarded by Jordan's Telecoms Regulatory Commission in mid-March, and a preliminary licence in Oman. FRiENDi has yet to reach a deal with one of Jordan's mobile operators.
i2, the Saudi Arabia-based mobile phone distributor and retailer, has been awarded an individual licence to operate mobile virtual network operator (MVNO) services in Jordan by the Telecom Regulatory Commission (TRC) of Jordan, the deal being signed on 11 May in Amman.
Meanwhile in Jordan i2 has obtained its MVNO services licence in Jordan. i2, the Saudi Arabia-based mobile phone distributor and retailer, has been awarded an individual licence to operate mobile virtual network operator (MVNO) services in Jordan by the Telecom Regulatory Commission (TRC) of Jordan.
Abdul Hameed Al Sunaid, the CEO of i2, stated that the move is the first step in the company’s plans to expand by offering a variety of services in the Middle East. The company explained that the decision to choose Jordan as the launch pad was the fact that it is the only country in the region that allows such operations.
Last year, TRC announced it would allow the entry of MVNOs into the country’s telecom sector. Currently, Orange, Zain and Umniah are the three primary mobile carriers, plus Xpress with its iDEN network. Joseph Hanania, CEO of Umniah was quoted by ITP.net as saying that the existing operators do not have much capacity to spare, as the low competitive prices encourage higher than average ‘minutes of use' utilisation by the subscribers.
When this milestone was brokered in Spain a long lag time ensued before an MNO stepped forward. It took a great deal of regulatory intervention but ultimately nothing happened until the MNOs decided that they would agree to terms. Once one agreement was announced others quickly followed which may be the case for the Middle East too, or at least in Jordan for now.
"There are currently approximately 360 planned or operational MVNOs world-wide and we look forward to being the first virtual mobile provider in the region. Being granted the approval to operate as an MVNO in Jordan is a key milestone for us. This step is in line with our vision of integrating the mobile value chain and to leverage on our assets: distribution, logistics, retail network, brand and our exceptional relationship with Nokia. We are eager to provide Top Class Customer Care Services, innovative offers and more diversified options to consumers and businesses,” said CEO of i2 Abdul Hameed Al Sunaid.
An analysis of the current scope for MVNOs in the Middle East is available in the Subscriber Archive.
MVNO Update 01 May 2008: MVNO for Etisalat's UAE network?
Reliance Communications (RCom) has been linked with Etisalat in reports that it is planning to offer GSM-based mobile virtual network operator (MVNO) services across 57 countries. MVNOs are currently not allowed in India. The RComs team of traffic analysts are working on various models for bulk airtime agreements, according to The Economic Times, and has been analysing network capacity utilisation patterns across target countries. According to ET, deals are being considered across Europe, Middle East, Africa, Australia and New Zealand, and include Etisalat in the Middle East and Vodafone in New Zealand.
RCom will buy airtime from operators and offer MVNO services riding on the content provided by Reliance Mobile World, and is looking at users with a preference for Ethnic Asian content, specific utility driven mobile-based applications and those with high international calling spends.
To begin with, RCom will launch a GSM-based Global SIM card, targeted at Indians travelling overseas. This will be available in pre-paid as well as post-paid options and offer value-added services for niche customers in global markets. Users of this SIM will also be able to receive free incoming calls in 57 countries.
The take-off of MVNO's in the Middle East has been slow: only recently has the Dubai-based Friendi Mobile obtained licences to launch an MVNO, with a licence being awarded by Jordan's Telecoms Regulatory Commission in mid-March, and a preliminary licence in Oman. According to MEED, the regulators in Saudi Arabia and Bahrain are also considering allowing MVNOs, with Bahrain thought to be likely to give approval for such a move this year. Friendi has yet to reach a deal with one of Jordan's mobile operators.
MVNODirectory.com notes that MVNOs are becoming of high interest to Middle East regulators. Allowing MVNOs to enter their markets would provide for a perceived free telecoms market which has the regulatory convenience of still keeping one or two traditional carriers. The consumer is therefore satisfied with having a choice of providers and the regulators need only deal with the carriers as the MVNOs should in theory be regulated by their host network (being the carrier).
The existence of global MVNOs is not a new concept; CallBlue GSM and GlobalRoam are already operating global MVNO based services specifically targeting business travellers, albeit out of Europe and Asia respectively. Their services are detailed in the attached PDF file provided free of charge to AMETW subscribers. Additional operator country profiles are available to order.
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