What is an MVNO. Andrew White Founding Partner, Piran Partners Fitzroy Square, London, W1T 5HP
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1 What is an MVNO Andrew White Founding Partner, Piran Partners Fitzroy Square, London, W1T 5HP
2 MVNO A definition The term MVNO means different things to different people Even the term MVNO is disputed, some refer to an MVNO other to an VMNO. MVNO is an abbreviation for Mobile Virtual Mobile Network VMNO is an abbreviation for Virtual Mobile Network Operator The mobile industry has supported Service Providers (SP) extensively since its origins, mainly due to a regulatory model introduced in the UK to foster competition between Racal Telecom (now Vodafone) and British Telecom (now mmo2 o2 Telefonica) The boundary between the definition of a Service Provider (SP), Enhanced Service Provider (ESP) and MVNO is blurred.
3 The key MVNO tests The following are key tests t to determin e if an entity is an MVNO: Does the entity own a national GSM or UMTS spectrum licence? Yes - then the arrangement is most likely a National Roaming Agreement. No continue. Is the host MNOs brand significantly visible in the entities go to market proposition? Yes - not an MVNO most likely to be a Service Provider (SP). No could be an MVNO or ESP. Does the entity set its own go to market proposition and tariff plans? No - then the arrangement is most likely a Service Provider (SP) Agreement. Yes could be an MVNO or ESP. Does the entity integrate with the host MNO, for example: to terminate traffic, or handle call control, or offer specific value added features which require intervention in the core network? Yes most likely that the entity is an MVNO. No could be SP or ESP. Does the entity receive a share of inbound termination revenues? Yes most likely that the entity is an MVNO. No could be MVNO, SP or ESP.
4 Tests which are not relevant The following tests t are not relevant to determine if an entity is an MVNO: Does the entity own or operate its own billing system? Why? Historically Service Providers (SP) have operated their own billing systems. Some MVNOs rely on the host MNO to provide branded billing services. Does the entity own a GSM guard band licence? Why? Just because an entity owns a GSM guard band licence does NOT oblige any MNO to provide a national roaming agreement. Who owns the customer? Why? A Service Provider (SP) legally owns the relationship with the customer. Who is responsible for bad debt? Why? A Service Provider (SP) may be legally responsible for default by the customer. The entity is a licensed GSM operator in another jurisdiction and member of the GSM Association (GSMA)? Why? This fact is not relevant to the national jurisdiction.
5 Components of an MVNO Piran Partners LLP 2005
6 Our mission: To provide clear, practical and straightforward commercial advice to our clients in the Telecommunications, Media and Technology sectors
7 Piran Partners Engagement footprint
8 Piran Partners Methodology VPP (Virtual Partner Programme) 3rd Party VPP for MVNOs Engagement process used to secure wholesale agreements with mobile operators for third parties. Operator VPP for Carriers Process enables operator to define or improve their wholesale strategy, identify which partners to target and which products and services to offer, while understanding the operational impact on the business.
9 Proposition Development The Science and the Art of pricing Use the Price Sensitivityy Meter and Focus Group research
10 Financial wholesale modeling
11 Five Top Tips Gaining i MVNO agreements Get the story straight Don t approach MNOs until the story and strategy stands up from all angles Be realistic Both with revenue projections and timeline expectations Being conscious of the MNO s hidden hurdles Hidden icebergs waiting to hole your pitch Ensure that everything is consistent Often two levels of detail in advance It takes longer than expected Be patient
12 Contact Piran Partners Andrew White Founding Partner, Piran Partners Fitzroy Square, London, W1T 5HP
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