SlideShare une entreprise Scribd logo
1  sur  26
Télécharger pour lire hors ligne
ADDRESSING THE MOBILE MARKET WITH
                  THE MVNO MODEL



                     SVP ADVISORS

                       March 2010




RETHINKING│ COMMUNICATIONS
Contents




    1. About SVP Advisors

    2. The MVNO model

    3. The international experience

    4. Successfully launching an MVNO




2
SVP Advisors in a snapshot

    SVP Advisors is a management consulting
    firm, which specialises in Regulation and
    Business Strategy in the broad telecoms
    sector



    SVP Advisors’ clients include:

     Int’l Organizations (EC)

     Regulators (TRA UAE, CITC, CMT,
       NITA, EETT, AGCOM, OCECPR)

     Operators (Turkcell, Telecom Italia,
       Telefònica)

     Financial      Institutions    (Citibank,
       Banco Santander, Inter Development
       Bank)
3
SVP Advisors’ experience with MVNO

    Client           Project Description and Objectives

    MNO (EE)         • Support in drafting wholesale offer for MVNOs

                     • Development of MVNO pricing model (retail minus, cost plus)

    MNO (EE)         • Support in definition of MVNO strategy

                     • Development of a tool to assess the viability of different MVNO models

    Private Equity   • Review of 2 MVNO business plans
    Fund (WE)
                     • Assessment of investment opportunity

    MVNO (WE)        • Support in negotiations with host operator

                     • Development of an internal costing model

    MNO (WE)         • Support in lobbying with the Regulator against MVNO access obligation

                     • Mobile market and competition analysis

    Regulator (WE)   • Mobile market and competition analysis

                     • Assessment of impact of MVNO entry in the mobile market


4
SVP Advisors can provide value-added support in different areas

                 Assess the MVNO opportunity in new markets
    FOR MVNOs


                 Develop business case/plans

                 Support in negotiations with host networks/MVNEs

                 Develop innovative voice and data propositions


                 Support in the definition of wholesale and MVNO strategy
    FOR MNOs




                 Evaluate proposals of candidate MVNOs

                 Develop cost-based models to determine wholesale MVNO prices

                 Design and implement accounting separation systems


                 Mobile market analysis (wholesale/retail)
    FOR NRAs




                 Assess the impact of MVNOs on market and competition

                 Develop bottom-up models to determine MNO’s access costs

                 Review regulatory accounts of MNOs

5
Contents




    1. About SVP Advisors

    2. The MVNO model

    3. The international experience

    4. Successfully launching an MVNO




6
Definition of MVNO


     Mobile Virtual Network Operators (MVNOs) are companies providing
      mobile services to end users without having their own licensed
      frequency allocation of radio spectrum



     MVNOs buy radio access (airtime) from Mobile Network Operators
      (MNOs) in order to provide calls, SMS, data and other mobile services



     Depending      on   their   type,   MVNOs   may   also    lack   additional
      infrastructure needed to provide mobile services, e.g. OSS/BSS



     Different to    MNOs, MVNOs typically have a narrower range of
      services/tariffs plans as they focus on a particular market segment


7
MVNO as a mean to reach different objectives


     The MVNO model can well serve different type of players



                             • Exploit difference in retail-wholesale prices
         1. New Player       • Use strong brand to enter a new market
                             • Exploit existing retail distribution network



                             • Sell excess network capacity
       2. Mobile Network
                             • Niche products / underserved segments
        Operator (MNO)
                             • Ease regulatory pressure



                             • Complement offering to existing clients
       3. Fixed operator     • First low-risk step into mobile
                             • Counter-attack mobile operators




8
1. The MVNO model for a New Player


     Large corporations, small companies or entrepreneurs can use the
      MVNO model to reach mobile customers with:

        Simple and cheap tariffs

        New services

        Innovative voice and data propositions

        Cross-promotions (existing activities)



     Examples:

        Supermarket chains distributing prepaid SIMs with cheap traffic

        Banks enhancing their customers’ experience through mobile

        Media brands providing own content directly to end users



9
2. The MVNO model for established MNOs


      The MVNO is one of two models available to MNOs to target market
       segments (the other being launching sub-brands)


                MVNO model                        Sub-brand model


           MVNO develops and retains           MNO maintains      customer
           relationship with customers         relationship

           MVNO develops its own               New brand or use existing
           tariffs and (in some cases)         strong brand to market the
           services                            services

           MNO charges MVNO per                MNO     generates     direct
           airtime and use of other            revenue    streams     from
           elements of the value chain         customers

           MNO typically hosts several         Different sub-brands used to
           MVNOs at a time                     address niche segments



10
3. The MVNO model for fixed operators


      FMC pushes operators to move into each others core businesses


      Fixed operators can effectively enter the mobile market through MVNO

         Quick time-to-market

         Low capex commitment (no license fee, network deployment)


                                 Mobile BB to
                                 minimize F2M
                                  substitution
                                                    GSM homezone
          4Play to increase                          solutions to
          APRU and reduce                            bypass fixed
               churn                                   network

                                    MVNO
                                    Model

11
An MVNO type could be defined according to the elements it
                                  controls in the mobile services’ value chain


             NETWORK             CONTENT &                    OPERATIONS              SALES & MARKETING
          INFRASTRUCTURE        APPLICATIONS



                                   VAS &
          Radio     Network                    SIM Card &                               Sales &         Value
                                  Service                        Billling   Support
        Spectrum    Switching                  Provisioning                           Distribution   Proposition
                                  Platform




BRAND




LIGHT




FULL



                      MVNO OWNS                    MNO OWNS                  MVNO MAY OR MAY NOT OWN



 12
Contents




     1. About SVP Advisors

     2. The MVNO model

     3. The international experience

     4. Successfully launching an MVNO




13
MVNOs presence in the World at a glance

      There are about 500 active MVNOs worldwide (as of March 2010)

      They control an estimated 2% of the total c.4.8bn mobile connections

      Their presence outside WE and the US is still largely underdeveloped


                                                                        31 MVNOs

              72 MVNOs                         311 MVNOs
              c. 10% share                     c. 10% share

                                                                   4 MVNOs
                                                                  <1% share
                                                                                    27 MVNOs
                                                                                     <1% share
                                                            7 MVNOs
                                                            <1% share

                         4 MVNOs
                         <1% share
                                                                                               42 MVNOs



                                                            Note: MNOs’ owned MVNOs and sub-
                                                            brands not included in the chart

14      Source: GSMA Wireless Intelligence, Telegeography
MVNOs presence in Western Europe

                                                            >20% SHARE

            NED                                         10%-19% SHARE           SWE

          41 MVNO                                          6%-9% SHARE         7 MVNO

                                                              <5% SHARE

             BEL                                                                FIN

          24 MVNO                                                              5 MVNO



              UK                                                                DEN

          28 MVNO                                                             36 MVNO



             FRA                                                                GER

          30 MVNO                                                             65 MVNO



             POR                                                                AUT

           5 MVNO                                                              3 MVNO



             SPA                                                                ITA

          25 MVNO                                                             14 MVNO



15   Source: SVP Advisors estimates, GSMA Wireless Intelligence
Overview of MVNO models [1]


     MVNO MODELS   DESCRIPTION                                      EXAMPLES


     Ethnic        Targets international communities providing
                   cheap calls to home countries

     Discount      “No frills” simple and cheap mobile services
                   targeting price sensitive customers

     Retail        Offered by retailers with strong distribution
                   network targeting the mass market


     Telecom       Mobile services offered to landiline customers
                   in addition to existing services


     Media/Youth   Value added music and video content
                   targeting young people



16
Overview of MVNO models [2]


     MVNO MODELS   DESCRIPTION                                       EXAMPLES


     Banking       Targets existing customers providing
                   additional services such as mobile banking

     Data          MVNOs that provide only mobile data and
                   broadband access (no voice)

     Business      Targets corporate customers with tailored
                   voice and data solutions

     Web           Offers innovative services e.g. call filtering,
                   personalised voicemail and online inbox

     Advertising   Free calls and SMS subsidized by targeted
                   advertising to subscribers



17
Current trends in the international MVNO market


      In mature MVNO markets (e.g. Northern Europe) mass market
       generic MVNOs are losing ground to niche MVNOs targeting specific
       segments or offering innovative services and solutions



      Several MNOs are becoming increasingly active in the MVNO market

         Buying MVNOs hosted in their network (e.g. Sprint-Virgin Mobile)

         Launching sub-brands



      As mobile markets approach maturity and regulation promotes
       competition, MVNOs are expected to appear in many new countries

         The market characteristics, the business initiative and the strategy
          of MNOs will drive the process in each country

18
Contents




     1. About SVP Advisors

     2. The MVNO model

     3. The international experience

     4. Successfully launching an MVNO




19
The different phases of an MVNO launch


     1. Selecting the   2. Setting-up the    3. Preparing for
      MVNO model            business              launch


                          Negotiations           Branding
       Regulation
                           with MNOs



       Market &                                    Value
                          Agreement
      competition                               proposition
                         with host MNO
        review



                          Selection of            Sales &
      Gap analysis        the enabling          distribution
                            platform              strategy



                          Preparation of         Marketing
       Positioning
                          business plan



20
The selection of the model is driven by the market opportunity and
                                             the positioning of the MVNO
                                     ILLUSTRATIVE

        MARKET/GAP ANALYSIS                   POSITIONING          MVNO MODEL

     • Limited competition on price                                 DISCOUNT
                                              Simple, cheap
                                                                     RETAIL
                                              mobile services
     • Significant retail-wholesale gap


     • Competitive market                     Competitive offer      ETHNIC
                                              tailored to target    BUSINESS
     • (some) underserved segments                 segment           YOUTH


     • Poorly differentiated offer               Innovative           MEDIA
                                                  service &            WEB
     • Limited availability of VAS/data         applications         BANKING


     • Mature telecoms sector                   Extend fixed
                                                                     TELECOM
                                               service offering
     • Fixed-mobile convergence                                        DATA
                                                  to mobile

21
The selection of the MNO and the consequent agreement is a
                                     fundamental step in the MVNO launch

      Identify MNO which fits better with the selected MVNO model

         Overall market positioning

         Target segment penetration



      Put first on the list candidate MNOs:

         With clear wholesale/MVNO strategy

         Seeing MVNO as a partner (not a competitor)



      Use “regulatory” threat in case of:

         Hostile approach by all/most MNOs

         Excessive wholesale rates


22
The pricing model is the single most important element of the
                                                      wholesale agreement


                                                             Works well in
                                                             case of MNO
                                                              and MVNO
                                                            working well as
                                    Commercial                 partners




      Margin risk for    Retail Minus          Cost Plus           Max flexibility
      the MVNO as it                                                for the MVNO
     is dependent on                                               to compete on
       MNO’s moves                                                     cost and
                                                                   differentiation
                                                                           -

           Retail Minus and Cost Plus are often imposed by Regulators

23
Selection of the Enabling Platform: the role of MVNEs


      MVNOs owning the elements in the mobile value chain relating to
       infrastructure and operations can either

         Develop these in-house

         Outsource them to a Mobile Virtual Network Enabler (MVNE)



      An MVNE is a company whose mission is to facilitate MVNOs market
       their services, acting as:

         A “One-stop-shop”, providing the whole back-end enablement
          (including the airtime)

         A provider of specific applications/services required by the MVNO
          (e.g. service platform, billing, customer care, VAS, etc…)



24
Preparing for launch


                         • Brand should reflect MVNO’s mission and positioning
         Branding        • Use existing strong brand (if available)
                         • Consider partnership with existing brand

                         • Should be tailored to target customers’ needs
     Value proposition   • Differentiated from other mobile players
                         • Commercial implications should be taken into account


         Sales &         • Coverage very important especially for prepaid
       distribution      • Consider partnership with host MNO (or other retailers)
         strategy        • Local regulations should be taken into account

                         • Define strategy for launch (brand awareness)
         Marketing       • Define ATL and BTL mix based on budget
                         • Consider innovative low-cost mechanisms

                         • Focus not only on acquisition but also on retention
          Other          • Exploit synergies with existing operations (if applicable)
                         • Maximize efficiency in all operations


25
Any questions? Please contact:

                                                          Dimitri Kallinis
                                                          Partner
                                                          dimitri.kallinis@svpadvisors.com




                                                          Company Address (main offices):

                                              THANK YOU   C/ Almagro 15, 5th floor
                                                          28010, Madrid
                                                          Spain

                                                          Telephone number:

                                                          +34 91 310 2895

                                                          Fax number:

                                                          +34 91 141 28 11




2009 © SVP Advisors   STRICTLY CONFIDENTIAL

Contenu connexe

Tendances

MVNOs & M2M (Machine to Machine) - Mobile telecommunications in 2015
MVNOs & M2M (Machine to Machine) - Mobile telecommunications in 2015MVNOs & M2M (Machine to Machine) - Mobile telecommunications in 2015
MVNOs & M2M (Machine to Machine) - Mobile telecommunications in 2015Martyn Taylor
 
Mobile virtual network operator MVNO
Mobile virtual network operator MVNOMobile virtual network operator MVNO
Mobile virtual network operator MVNOIbrahim alghamdi
 
Introduction to 5G by Doug Hohulin
Introduction to 5G by Doug HohulinIntroduction to 5G by Doug Hohulin
Introduction to 5G by Doug HohulinGigabit City Summit
 
deloitte-cn-tmt-analysis-mvno-competition-strategy-en-160813
deloitte-cn-tmt-analysis-mvno-competition-strategy-en-160813deloitte-cn-tmt-analysis-mvno-competition-strategy-en-160813
deloitte-cn-tmt-analysis-mvno-competition-strategy-en-160813Business Logic Systems Ltd
 
MVNOs and mobile resellers - Commercial and regulatory issues
MVNOs and mobile resellers - Commercial and regulatory issuesMVNOs and mobile resellers - Commercial and regulatory issues
MVNOs and mobile resellers - Commercial and regulatory issuesMartyn Taylor
 
MNO, MVNO, MVNA, MVNE: Different types of mobile operators
MNO, MVNO, MVNA, MVNE: Different types of mobile operatorsMNO, MVNO, MVNA, MVNE: Different types of mobile operators
MNO, MVNO, MVNA, MVNE: Different types of mobile operators3G4G
 
Active sharing best practice for regulators
Active sharing best practice for regulatorsActive sharing best practice for regulators
Active sharing best practice for regulatorsColeago Consulting
 
MVNO Consulting Services
MVNO Consulting ServicesMVNO Consulting Services
MVNO Consulting ServicesYOZZO
 
Huawei antenna tdd-8_t8r_antenna_maximize_potentials_of_network
Huawei antenna tdd-8_t8r_antenna_maximize_potentials_of_networkHuawei antenna tdd-8_t8r_antenna_maximize_potentials_of_network
Huawei antenna tdd-8_t8r_antenna_maximize_potentials_of_networkJulio Santana
 
Mobile Network Infrastructure Sharing - Industry Overview & Coleago's Approach
Mobile Network Infrastructure Sharing - Industry Overview & Coleago's ApproachMobile Network Infrastructure Sharing - Industry Overview & Coleago's Approach
Mobile Network Infrastructure Sharing - Industry Overview & Coleago's ApproachColeago Consulting
 
Infonova Telco1 0 2 0 Bss Rel 6 Introduction V10 Timpact
Infonova Telco1 0  2 0 Bss Rel 6 Introduction V10 TimpactInfonova Telco1 0  2 0 Bss Rel 6 Introduction V10 Timpact
Infonova Telco1 0 2 0 Bss Rel 6 Introduction V10 Timpactfantastic1
 
Global Telecom Industry Overview - 2023
Global Telecom Industry Overview - 2023 Global Telecom Industry Overview - 2023
Global Telecom Industry Overview - 2023 Vishal Sharma
 
Telco digital transfomation view by Exacaster 2019
Telco digital transfomation view by Exacaster 2019 Telco digital transfomation view by Exacaster 2019
Telco digital transfomation view by Exacaster 2019 Jolita Bernotiene
 
Next Generation Service Platforms for Multimedia and Value Added Services
Next Generation Service Platforms for Multimedia and Value Added ServicesNext Generation Service Platforms for Multimedia and Value Added Services
Next Generation Service Platforms for Multimedia and Value Added ServicesAli Saghaeian
 
Ericsson 5G learning portfolio 2018
Ericsson 5G learning portfolio 2018Ericsson 5G learning portfolio 2018
Ericsson 5G learning portfolio 2018Ericsson
 
Deploying Value-Added Service (VAS) Applications over LTE Network as an Advan...
Deploying Value-Added Service (VAS) Applications over LTE Network as an Advan...Deploying Value-Added Service (VAS) Applications over LTE Network as an Advan...
Deploying Value-Added Service (VAS) Applications over LTE Network as an Advan...Ali Saghaeian
 
5G Services Story
5G Services Story5G Services Story
5G Services StoryEricsson
 

Tendances (20)

Mvno
MvnoMvno
Mvno
 
MVNOs & M2M (Machine to Machine) - Mobile telecommunications in 2015
MVNOs & M2M (Machine to Machine) - Mobile telecommunications in 2015MVNOs & M2M (Machine to Machine) - Mobile telecommunications in 2015
MVNOs & M2M (Machine to Machine) - Mobile telecommunications in 2015
 
Mobile virtual network operator MVNO
Mobile virtual network operator MVNOMobile virtual network operator MVNO
Mobile virtual network operator MVNO
 
MVNO Strategy
MVNO StrategyMVNO Strategy
MVNO Strategy
 
Introduction to 5G by Doug Hohulin
Introduction to 5G by Doug HohulinIntroduction to 5G by Doug Hohulin
Introduction to 5G by Doug Hohulin
 
deloitte-cn-tmt-analysis-mvno-competition-strategy-en-160813
deloitte-cn-tmt-analysis-mvno-competition-strategy-en-160813deloitte-cn-tmt-analysis-mvno-competition-strategy-en-160813
deloitte-cn-tmt-analysis-mvno-competition-strategy-en-160813
 
MVNOs and mobile resellers - Commercial and regulatory issues
MVNOs and mobile resellers - Commercial and regulatory issuesMVNOs and mobile resellers - Commercial and regulatory issues
MVNOs and mobile resellers - Commercial and regulatory issues
 
MNO, MVNO, MVNA, MVNE: Different types of mobile operators
MNO, MVNO, MVNA, MVNE: Different types of mobile operatorsMNO, MVNO, MVNA, MVNE: Different types of mobile operators
MNO, MVNO, MVNA, MVNE: Different types of mobile operators
 
Active sharing best practice for regulators
Active sharing best practice for regulatorsActive sharing best practice for regulators
Active sharing best practice for regulators
 
5G: The Evolution and Tech Trends Today
5G: The Evolution and Tech Trends Today5G: The Evolution and Tech Trends Today
5G: The Evolution and Tech Trends Today
 
MVNO Consulting Services
MVNO Consulting ServicesMVNO Consulting Services
MVNO Consulting Services
 
Huawei antenna tdd-8_t8r_antenna_maximize_potentials_of_network
Huawei antenna tdd-8_t8r_antenna_maximize_potentials_of_networkHuawei antenna tdd-8_t8r_antenna_maximize_potentials_of_network
Huawei antenna tdd-8_t8r_antenna_maximize_potentials_of_network
 
Mobile Network Infrastructure Sharing - Industry Overview & Coleago's Approach
Mobile Network Infrastructure Sharing - Industry Overview & Coleago's ApproachMobile Network Infrastructure Sharing - Industry Overview & Coleago's Approach
Mobile Network Infrastructure Sharing - Industry Overview & Coleago's Approach
 
Infonova Telco1 0 2 0 Bss Rel 6 Introduction V10 Timpact
Infonova Telco1 0  2 0 Bss Rel 6 Introduction V10 TimpactInfonova Telco1 0  2 0 Bss Rel 6 Introduction V10 Timpact
Infonova Telco1 0 2 0 Bss Rel 6 Introduction V10 Timpact
 
Global Telecom Industry Overview - 2023
Global Telecom Industry Overview - 2023 Global Telecom Industry Overview - 2023
Global Telecom Industry Overview - 2023
 
Telco digital transfomation view by Exacaster 2019
Telco digital transfomation view by Exacaster 2019 Telco digital transfomation view by Exacaster 2019
Telco digital transfomation view by Exacaster 2019
 
Next Generation Service Platforms for Multimedia and Value Added Services
Next Generation Service Platforms for Multimedia and Value Added ServicesNext Generation Service Platforms for Multimedia and Value Added Services
Next Generation Service Platforms for Multimedia and Value Added Services
 
Ericsson 5G learning portfolio 2018
Ericsson 5G learning portfolio 2018Ericsson 5G learning portfolio 2018
Ericsson 5G learning portfolio 2018
 
Deploying Value-Added Service (VAS) Applications over LTE Network as an Advan...
Deploying Value-Added Service (VAS) Applications over LTE Network as an Advan...Deploying Value-Added Service (VAS) Applications over LTE Network as an Advan...
Deploying Value-Added Service (VAS) Applications over LTE Network as an Advan...
 
5G Services Story
5G Services Story5G Services Story
5G Services Story
 

En vedette

MVNO for MNO
MVNO for MNOMVNO for MNO
MVNO for MNOmikerrr
 
MVNO for Financial Services - Cartesian - June 2015
MVNO for Financial Services - Cartesian - June 2015MVNO for Financial Services - Cartesian - June 2015
MVNO for Financial Services - Cartesian - June 2015Cartesian
 
Cartesian Perspectives - What does the future hold for the MVNO market?
Cartesian Perspectives - What does the future hold for the MVNO market? Cartesian Perspectives - What does the future hold for the MVNO market?
Cartesian Perspectives - What does the future hold for the MVNO market? Cartesian
 
MNVO Valuation Progression
MNVO Valuation ProgressionMNVO Valuation Progression
MNVO Valuation Progressioncorangamite
 
Linha Direta em Revista - O lixo que não é lixo - outubro/2011
Linha Direta em Revista - O lixo que não é lixo - outubro/2011Linha Direta em Revista - O lixo que não é lixo - outubro/2011
Linha Direta em Revista - O lixo que não é lixo - outubro/2011Wigliani Notícias
 
Mobile Connect and the FIDO standards
Mobile Connect and the FIDO standardsMobile Connect and the FIDO standards
Mobile Connect and the FIDO standardsFIDO Alliance
 
KPN IoT workshop
KPN IoT workshopKPN IoT workshop
KPN IoT workshopKPN IoT
 
Hoe M2M de wereld gaat veranderen
Hoe M2M de wereld gaat veranderenHoe M2M de wereld gaat veranderen
Hoe M2M de wereld gaat veranderenKPN IoT
 
Middle East and North Africa: The Next Growth Market for MVNO?
Middle East and North Africa: The Next Growth Market for MVNO?Middle East and North Africa: The Next Growth Market for MVNO?
Middle East and North Africa: The Next Growth Market for MVNO?Cartesian (formerly CSMG)
 
Questionnaire: the 70 questions to answer before engaging on the road to beco...
Questionnaire: the 70 questions to answer before engaging on the road to beco...Questionnaire: the 70 questions to answer before engaging on the road to beco...
Questionnaire: the 70 questions to answer before engaging on the road to beco...Computaris
 
Mvno warsaw sept 2013
Mvno warsaw  sept 2013Mvno warsaw  sept 2013
Mvno warsaw sept 2013Paul Wade
 
Atividades Acadêmicas | MVNO Ricardo Eletro por Gutenberg Almeida
Atividades Acadêmicas | MVNO Ricardo Eletro por Gutenberg AlmeidaAtividades Acadêmicas | MVNO Ricardo Eletro por Gutenberg Almeida
Atividades Acadêmicas | MVNO Ricardo Eletro por Gutenberg AlmeidaGutenberg Almeida
 
Widespread Cloud Adoption: What's Taking So Long?
Widespread Cloud Adoption: What's Taking So Long?Widespread Cloud Adoption: What's Taking So Long?
Widespread Cloud Adoption: What's Taking So Long?Cartesian (formerly CSMG)
 

En vedette (18)

MVNO for MNO
MVNO for MNOMVNO for MNO
MVNO for MNO
 
MVNO for Financial Services - Cartesian - June 2015
MVNO for Financial Services - Cartesian - June 2015MVNO for Financial Services - Cartesian - June 2015
MVNO for Financial Services - Cartesian - June 2015
 
Cartesian Perspectives - What does the future hold for the MVNO market?
Cartesian Perspectives - What does the future hold for the MVNO market? Cartesian Perspectives - What does the future hold for the MVNO market?
Cartesian Perspectives - What does the future hold for the MVNO market?
 
MNVO Valuation Progression
MNVO Valuation ProgressionMNVO Valuation Progression
MNVO Valuation Progression
 
Linha Direta em Revista - O lixo que não é lixo - outubro/2011
Linha Direta em Revista - O lixo que não é lixo - outubro/2011Linha Direta em Revista - O lixo que não é lixo - outubro/2011
Linha Direta em Revista - O lixo que não é lixo - outubro/2011
 
Mobile Connect and the FIDO standards
Mobile Connect and the FIDO standardsMobile Connect and the FIDO standards
Mobile Connect and the FIDO standards
 
Toekomst van Telecom
Toekomst van TelecomToekomst van Telecom
Toekomst van Telecom
 
KPN IoT workshop
KPN IoT workshopKPN IoT workshop
KPN IoT workshop
 
Hoe M2M de wereld gaat veranderen
Hoe M2M de wereld gaat veranderenHoe M2M de wereld gaat veranderen
Hoe M2M de wereld gaat veranderen
 
Middle East and North Africa: The Next Growth Market for MVNO?
Middle East and North Africa: The Next Growth Market for MVNO?Middle East and North Africa: The Next Growth Market for MVNO?
Middle East and North Africa: The Next Growth Market for MVNO?
 
Questionnaire: the 70 questions to answer before engaging on the road to beco...
Questionnaire: the 70 questions to answer before engaging on the road to beco...Questionnaire: the 70 questions to answer before engaging on the road to beco...
Questionnaire: the 70 questions to answer before engaging on the road to beco...
 
Mvno warsaw sept 2013
Mvno warsaw  sept 2013Mvno warsaw  sept 2013
Mvno warsaw sept 2013
 
Atividades Acadêmicas | MVNO Ricardo Eletro por Gutenberg Almeida
Atividades Acadêmicas | MVNO Ricardo Eletro por Gutenberg AlmeidaAtividades Acadêmicas | MVNO Ricardo Eletro por Gutenberg Almeida
Atividades Acadêmicas | MVNO Ricardo Eletro por Gutenberg Almeida
 
Apple TV: Evolution or Revolution?
Apple TV: Evolution or Revolution?Apple TV: Evolution or Revolution?
Apple TV: Evolution or Revolution?
 
M2M Analytics: A New Wave of Innovation
M2M Analytics: A New Wave of InnovationM2M Analytics: A New Wave of Innovation
M2M Analytics: A New Wave of Innovation
 
Telecom Strategies for Postal Operators
Telecom Strategies for Postal OperatorsTelecom Strategies for Postal Operators
Telecom Strategies for Postal Operators
 
Widespread Cloud Adoption: What's Taking So Long?
Widespread Cloud Adoption: What's Taking So Long?Widespread Cloud Adoption: What's Taking So Long?
Widespread Cloud Adoption: What's Taking So Long?
 
New Models for Device Financing
New Models for Device FinancingNew Models for Device Financing
New Models for Device Financing
 

Similaire à Addressing the mobile market with the MVNO model

1. John Strand Ft Oslo
1. John Strand Ft Oslo1. John Strand Ft Oslo
1. John Strand Ft OsloFirst Tuesday
 
Mvnomvne indentifyingnewbusinessopportunities-090915042924-phpapp01
Mvnomvne indentifyingnewbusinessopportunities-090915042924-phpapp01Mvnomvne indentifyingnewbusinessopportunities-090915042924-phpapp01
Mvnomvne indentifyingnewbusinessopportunities-090915042924-phpapp01Millennial Mobility
 
Rio Info 2010 - Seminário de Tecnologia - Integracao de Servicos - Eduardo Pr...
Rio Info 2010 - Seminário de Tecnologia - Integracao de Servicos - Eduardo Pr...Rio Info 2010 - Seminário de Tecnologia - Integracao de Servicos - Eduardo Pr...
Rio Info 2010 - Seminário de Tecnologia - Integracao de Servicos - Eduardo Pr...Rio Info
 
SCF Enteprise Private Indoor Introduction
SCF Enteprise Private Indoor IntroductionSCF Enteprise Private Indoor Introduction
SCF Enteprise Private Indoor IntroductionSmall Cell Forum
 
Mobile Virtual Network Operator (MVNO) Market PPT: Growth, Outlook, Demand, K...
Mobile Virtual Network Operator (MVNO) Market PPT: Growth, Outlook, Demand, K...Mobile Virtual Network Operator (MVNO) Market PPT: Growth, Outlook, Demand, K...
Mobile Virtual Network Operator (MVNO) Market PPT: Growth, Outlook, Demand, K...IMARC Group
 
Analysys Mason - the opportunity for LPWA solutions
Analysys Mason  - the opportunity for LPWA solutionsAnalysys Mason  - the opportunity for LPWA solutions
Analysys Mason - the opportunity for LPWA solutionsTom Rebbeck
 
Computaris mvno-opportunity
Computaris mvno-opportunityComputaris mvno-opportunity
Computaris mvno-opportunityComputaris
 
A Simple Case of The Importance of Risk Management for The Future of Cellular...
A Simple Case of The Importance of Risk Management for The Future of Cellular...A Simple Case of The Importance of Risk Management for The Future of Cellular...
A Simple Case of The Importance of Risk Management for The Future of Cellular...dev yusmananda
 
Mvno summit rome 2013
Mvno summit rome 2013Mvno summit rome 2013
Mvno summit rome 2013Paul Wade
 

Similaire à Addressing the mobile market with the MVNO model (20)

1. John Strand Ft Oslo
1. John Strand Ft Oslo1. John Strand Ft Oslo
1. John Strand Ft Oslo
 
Mvnomvne indentifyingnewbusinessopportunities-090915042924-phpapp01
Mvnomvne indentifyingnewbusinessopportunities-090915042924-phpapp01Mvnomvne indentifyingnewbusinessopportunities-090915042924-phpapp01
Mvnomvne indentifyingnewbusinessopportunities-090915042924-phpapp01
 
S Curve
S CurveS Curve
S Curve
 
Rio Info 2010 - Seminário de Tecnologia - Integracao de Servicos - Eduardo Pr...
Rio Info 2010 - Seminário de Tecnologia - Integracao de Servicos - Eduardo Pr...Rio Info 2010 - Seminário de Tecnologia - Integracao de Servicos - Eduardo Pr...
Rio Info 2010 - Seminário de Tecnologia - Integracao de Servicos - Eduardo Pr...
 
MVNO India.pptx
MVNO India.pptxMVNO India.pptx
MVNO India.pptx
 
Cable MVNO Seminar Brochure
Cable MVNO Seminar BrochureCable MVNO Seminar Brochure
Cable MVNO Seminar Brochure
 
MVNO Seminar Brochure
MVNO Seminar BrochureMVNO Seminar Brochure
MVNO Seminar Brochure
 
MVNO
MVNOMVNO
MVNO
 
SCF Enteprise Private Indoor Introduction
SCF Enteprise Private Indoor IntroductionSCF Enteprise Private Indoor Introduction
SCF Enteprise Private Indoor Introduction
 
Mobile Virtual Network Operator (MVNO) Market PPT: Growth, Outlook, Demand, K...
Mobile Virtual Network Operator (MVNO) Market PPT: Growth, Outlook, Demand, K...Mobile Virtual Network Operator (MVNO) Market PPT: Growth, Outlook, Demand, K...
Mobile Virtual Network Operator (MVNO) Market PPT: Growth, Outlook, Demand, K...
 
iMVNOx Corporate Overview
iMVNOx Corporate OverviewiMVNOx Corporate Overview
iMVNOx Corporate Overview
 
iMVNOx Corporate Overview
iMVNOx Corporate OverviewiMVNOx Corporate Overview
iMVNOx Corporate Overview
 
Analysys Mason - the opportunity for LPWA solutions
Analysys Mason  - the opportunity for LPWA solutionsAnalysys Mason  - the opportunity for LPWA solutions
Analysys Mason - the opportunity for LPWA solutions
 
Tele.net_MVNO forum
Tele.net_MVNO forumTele.net_MVNO forum
Tele.net_MVNO forum
 
Computaris mvno-opportunity
Computaris mvno-opportunityComputaris mvno-opportunity
Computaris mvno-opportunity
 
A Simple Case of The Importance of Risk Management for The Future of Cellular...
A Simple Case of The Importance of Risk Management for The Future of Cellular...A Simple Case of The Importance of Risk Management for The Future of Cellular...
A Simple Case of The Importance of Risk Management for The Future of Cellular...
 
MVNO Industry Overview
MVNO Industry OverviewMVNO Industry Overview
MVNO Industry Overview
 
Seven Requirements of a Successful MVNO
Seven Requirements of a Successful MVNOSeven Requirements of a Successful MVNO
Seven Requirements of a Successful MVNO
 
Mvno summit rome 2013
Mvno summit rome 2013Mvno summit rome 2013
Mvno summit rome 2013
 
MVNE Seminar Brochure
MVNE Seminar BrochureMVNE Seminar Brochure
MVNE Seminar Brochure
 

Addressing the mobile market with the MVNO model

  • 1. ADDRESSING THE MOBILE MARKET WITH THE MVNO MODEL SVP ADVISORS March 2010 RETHINKING│ COMMUNICATIONS
  • 2. Contents 1. About SVP Advisors 2. The MVNO model 3. The international experience 4. Successfully launching an MVNO 2
  • 3. SVP Advisors in a snapshot SVP Advisors is a management consulting firm, which specialises in Regulation and Business Strategy in the broad telecoms sector SVP Advisors’ clients include:  Int’l Organizations (EC)  Regulators (TRA UAE, CITC, CMT, NITA, EETT, AGCOM, OCECPR)  Operators (Turkcell, Telecom Italia, Telefònica)  Financial Institutions (Citibank, Banco Santander, Inter Development Bank) 3
  • 4. SVP Advisors’ experience with MVNO Client Project Description and Objectives MNO (EE) • Support in drafting wholesale offer for MVNOs • Development of MVNO pricing model (retail minus, cost plus) MNO (EE) • Support in definition of MVNO strategy • Development of a tool to assess the viability of different MVNO models Private Equity • Review of 2 MVNO business plans Fund (WE) • Assessment of investment opportunity MVNO (WE) • Support in negotiations with host operator • Development of an internal costing model MNO (WE) • Support in lobbying with the Regulator against MVNO access obligation • Mobile market and competition analysis Regulator (WE) • Mobile market and competition analysis • Assessment of impact of MVNO entry in the mobile market 4
  • 5. SVP Advisors can provide value-added support in different areas  Assess the MVNO opportunity in new markets FOR MVNOs  Develop business case/plans  Support in negotiations with host networks/MVNEs  Develop innovative voice and data propositions  Support in the definition of wholesale and MVNO strategy FOR MNOs  Evaluate proposals of candidate MVNOs  Develop cost-based models to determine wholesale MVNO prices  Design and implement accounting separation systems  Mobile market analysis (wholesale/retail) FOR NRAs  Assess the impact of MVNOs on market and competition  Develop bottom-up models to determine MNO’s access costs  Review regulatory accounts of MNOs 5
  • 6. Contents 1. About SVP Advisors 2. The MVNO model 3. The international experience 4. Successfully launching an MVNO 6
  • 7. Definition of MVNO  Mobile Virtual Network Operators (MVNOs) are companies providing mobile services to end users without having their own licensed frequency allocation of radio spectrum  MVNOs buy radio access (airtime) from Mobile Network Operators (MNOs) in order to provide calls, SMS, data and other mobile services  Depending on their type, MVNOs may also lack additional infrastructure needed to provide mobile services, e.g. OSS/BSS  Different to MNOs, MVNOs typically have a narrower range of services/tariffs plans as they focus on a particular market segment 7
  • 8. MVNO as a mean to reach different objectives  The MVNO model can well serve different type of players • Exploit difference in retail-wholesale prices 1. New Player • Use strong brand to enter a new market • Exploit existing retail distribution network • Sell excess network capacity 2. Mobile Network • Niche products / underserved segments Operator (MNO) • Ease regulatory pressure • Complement offering to existing clients 3. Fixed operator • First low-risk step into mobile • Counter-attack mobile operators 8
  • 9. 1. The MVNO model for a New Player  Large corporations, small companies or entrepreneurs can use the MVNO model to reach mobile customers with:  Simple and cheap tariffs  New services  Innovative voice and data propositions  Cross-promotions (existing activities)  Examples:  Supermarket chains distributing prepaid SIMs with cheap traffic  Banks enhancing their customers’ experience through mobile  Media brands providing own content directly to end users 9
  • 10. 2. The MVNO model for established MNOs  The MVNO is one of two models available to MNOs to target market segments (the other being launching sub-brands) MVNO model Sub-brand model MVNO develops and retains MNO maintains customer relationship with customers relationship MVNO develops its own New brand or use existing tariffs and (in some cases) strong brand to market the services services MNO charges MVNO per MNO generates direct airtime and use of other revenue streams from elements of the value chain customers MNO typically hosts several Different sub-brands used to MVNOs at a time address niche segments 10
  • 11. 3. The MVNO model for fixed operators  FMC pushes operators to move into each others core businesses  Fixed operators can effectively enter the mobile market through MVNO  Quick time-to-market  Low capex commitment (no license fee, network deployment) Mobile BB to minimize F2M substitution GSM homezone 4Play to increase solutions to APRU and reduce bypass fixed churn network MVNO Model 11
  • 12. An MVNO type could be defined according to the elements it controls in the mobile services’ value chain NETWORK CONTENT & OPERATIONS SALES & MARKETING INFRASTRUCTURE APPLICATIONS VAS & Radio Network SIM Card & Sales & Value Service Billling Support Spectrum Switching Provisioning Distribution Proposition Platform BRAND LIGHT FULL MVNO OWNS MNO OWNS MVNO MAY OR MAY NOT OWN 12
  • 13. Contents 1. About SVP Advisors 2. The MVNO model 3. The international experience 4. Successfully launching an MVNO 13
  • 14. MVNOs presence in the World at a glance  There are about 500 active MVNOs worldwide (as of March 2010)  They control an estimated 2% of the total c.4.8bn mobile connections  Their presence outside WE and the US is still largely underdeveloped 31 MVNOs 72 MVNOs 311 MVNOs c. 10% share c. 10% share 4 MVNOs <1% share 27 MVNOs <1% share 7 MVNOs <1% share 4 MVNOs <1% share 42 MVNOs Note: MNOs’ owned MVNOs and sub- brands not included in the chart 14 Source: GSMA Wireless Intelligence, Telegeography
  • 15. MVNOs presence in Western Europe >20% SHARE NED 10%-19% SHARE SWE 41 MVNO 6%-9% SHARE 7 MVNO <5% SHARE BEL FIN 24 MVNO 5 MVNO UK DEN 28 MVNO 36 MVNO FRA GER 30 MVNO 65 MVNO POR AUT 5 MVNO 3 MVNO SPA ITA 25 MVNO 14 MVNO 15 Source: SVP Advisors estimates, GSMA Wireless Intelligence
  • 16. Overview of MVNO models [1] MVNO MODELS DESCRIPTION EXAMPLES Ethnic Targets international communities providing cheap calls to home countries Discount “No frills” simple and cheap mobile services targeting price sensitive customers Retail Offered by retailers with strong distribution network targeting the mass market Telecom Mobile services offered to landiline customers in addition to existing services Media/Youth Value added music and video content targeting young people 16
  • 17. Overview of MVNO models [2] MVNO MODELS DESCRIPTION EXAMPLES Banking Targets existing customers providing additional services such as mobile banking Data MVNOs that provide only mobile data and broadband access (no voice) Business Targets corporate customers with tailored voice and data solutions Web Offers innovative services e.g. call filtering, personalised voicemail and online inbox Advertising Free calls and SMS subsidized by targeted advertising to subscribers 17
  • 18. Current trends in the international MVNO market  In mature MVNO markets (e.g. Northern Europe) mass market generic MVNOs are losing ground to niche MVNOs targeting specific segments or offering innovative services and solutions  Several MNOs are becoming increasingly active in the MVNO market  Buying MVNOs hosted in their network (e.g. Sprint-Virgin Mobile)  Launching sub-brands  As mobile markets approach maturity and regulation promotes competition, MVNOs are expected to appear in many new countries  The market characteristics, the business initiative and the strategy of MNOs will drive the process in each country 18
  • 19. Contents 1. About SVP Advisors 2. The MVNO model 3. The international experience 4. Successfully launching an MVNO 19
  • 20. The different phases of an MVNO launch 1. Selecting the 2. Setting-up the 3. Preparing for MVNO model business launch Negotiations Branding Regulation with MNOs Market & Value Agreement competition proposition with host MNO review Selection of Sales & Gap analysis the enabling distribution platform strategy Preparation of Marketing Positioning business plan 20
  • 21. The selection of the model is driven by the market opportunity and the positioning of the MVNO ILLUSTRATIVE MARKET/GAP ANALYSIS POSITIONING MVNO MODEL • Limited competition on price DISCOUNT Simple, cheap RETAIL mobile services • Significant retail-wholesale gap • Competitive market Competitive offer ETHNIC tailored to target BUSINESS • (some) underserved segments segment YOUTH • Poorly differentiated offer Innovative MEDIA service & WEB • Limited availability of VAS/data applications BANKING • Mature telecoms sector Extend fixed TELECOM service offering • Fixed-mobile convergence DATA to mobile 21
  • 22. The selection of the MNO and the consequent agreement is a fundamental step in the MVNO launch  Identify MNO which fits better with the selected MVNO model  Overall market positioning  Target segment penetration  Put first on the list candidate MNOs:  With clear wholesale/MVNO strategy  Seeing MVNO as a partner (not a competitor)  Use “regulatory” threat in case of:  Hostile approach by all/most MNOs  Excessive wholesale rates 22
  • 23. The pricing model is the single most important element of the wholesale agreement Works well in case of MNO and MVNO working well as Commercial partners Margin risk for Retail Minus Cost Plus Max flexibility the MVNO as it for the MVNO is dependent on to compete on MNO’s moves cost and differentiation - Retail Minus and Cost Plus are often imposed by Regulators 23
  • 24. Selection of the Enabling Platform: the role of MVNEs  MVNOs owning the elements in the mobile value chain relating to infrastructure and operations can either  Develop these in-house  Outsource them to a Mobile Virtual Network Enabler (MVNE)  An MVNE is a company whose mission is to facilitate MVNOs market their services, acting as:  A “One-stop-shop”, providing the whole back-end enablement (including the airtime)  A provider of specific applications/services required by the MVNO (e.g. service platform, billing, customer care, VAS, etc…) 24
  • 25. Preparing for launch • Brand should reflect MVNO’s mission and positioning Branding • Use existing strong brand (if available) • Consider partnership with existing brand • Should be tailored to target customers’ needs Value proposition • Differentiated from other mobile players • Commercial implications should be taken into account Sales & • Coverage very important especially for prepaid distribution • Consider partnership with host MNO (or other retailers) strategy • Local regulations should be taken into account • Define strategy for launch (brand awareness) Marketing • Define ATL and BTL mix based on budget • Consider innovative low-cost mechanisms • Focus not only on acquisition but also on retention Other • Exploit synergies with existing operations (if applicable) • Maximize efficiency in all operations 25
  • 26. Any questions? Please contact: Dimitri Kallinis Partner dimitri.kallinis@svpadvisors.com Company Address (main offices): THANK YOU C/ Almagro 15, 5th floor 28010, Madrid Spain Telephone number: +34 91 310 2895 Fax number: +34 91 141 28 11 2009 © SVP Advisors STRICTLY CONFIDENTIAL