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MVNO Concept Min

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MVNO Concept

MNO: Mobile Network Operator


MNO owns the wireless network infrastructure (masts)
MNO has its own mobile phone software system
MNO has a license for the radio frequency
MNO provides billing system

MNOs in Saudi Arabia: STC, Mobily, Zain

MNO provides customer care service

MNOs in U.A.E.:

Etisalat, du

MVNO Concept
MVNO: Mobile Virtual Network Operator
MVNO has an agreement with the MNO
MVNO is using the wireless infrastructure of the MNO
MVNO is using the MNOs radio frequency
MVNO has its own Marketing & Sales division
MVNO might have its own billing system
MVNO might have its own customer care service

MNO customer

MNO customer

MVNO customer

MVNO customer
The MVNO is using the existing network for his own customers
The MVNO is paying a fee for each phone call to the MNO

MVNO Concept
Why MVNO ?
 MVNO can approach new target groups which are difficult to explore for the MNO
e.g. customers with low budgets
 MVNO is bringing more utilisation to MNOs existing network (more phone calls)
 MVNO usually has a different mobile phone tariff system, e.g. flat rates
 Gain market share for MNOs
 Very interesting EXIT scenario for investors (very large ROI*)

*ROI: Return on Investment

MVNO Concept
Steps to establish an MVNO system
 Obtaining a MVNO license
 Negotiating with existing MNOs about an agreement to use their infrastructure
 System integration: Synchronisation between MNO and MVNO software
 Marketing and Sales activities, including SIM card production
 Establishing a Billing System
 Establishing a Customer Care System
=> Go live

MVNO Concept
Countries with MVNO systems
-> Europe

New Countries for a MVNO concept


-> Middle East & Africa

United Kingdom
MNOs:
Vodafone, EE, O2 ,3
MVNOs: Virgin Mobile, Tesco, Unicom etc.
>90 MVNOs (!)
Germany
MNOs:
Telekom, Vodafone, E-Plus, O2
MVNOs: Base, Aldi Talk, Tchibo etc.
> 120 MVNOs (!)
Denmark
MNOs:
TDC, Telenor, Telia, 3
MVNOs: MTEL, ComX, Uni-tel, etc.
58 MVNOs (!)
France
MNOs:
Orange, SFR, Bouyges, Free Mobile
MVNOs: Cofidis, Prixtel, Budget etc.
65 MVNOs (!)
...

Saudi Arabia
MNOs:
STC, Zain, Mobily
MVNOs: nil, 6 licenses to be issued soon (!)

saturated markets

Oman
MNOs:
MVNOs:
Nigeria
MNOs:
MVNOs:
Sudan
MNOs:
MVNOs:

future!

Telekom, Vodafone, E-Plus, O2


FRiENDi, Renna, Mazoon, Injaz,
Kalam
MTN, Airtel, Etisalat, etc (Nos: 8)
nil, licenses will be issued soon

Zain, MTN, Sudani, Canar


nil, licenses will be issued soon
...

emerging markets

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