MVNOMobileVirtualNetworkOperator

1、mvno: mobile virtual network operator2outlinenwhat is an mvno?nwhy do we need mvnos?nwhat are the opportunities and risks?nwhy would mnos go along?nwhere are we today?3what is an mvno?nan mvno does not own spectrum, it leases it from a network operator with whom it has a relationship.nan mvno suppli

2、es the sim card and has full control over its subscribers and handles its own billing.4what is an mvno?nan mvno buys network capacity, usually as close to the base level as possible, and invests in a service infrastructure of its own.nthe mvno thereby establishes a more independent position and is a

3、ble to compete directly with other mobile network operators in the market by offering advanced services.5how an mvno connects to a mnonan mvno has everything its own, except for the spectrum, base stations, and base station controllers6benefits of infrastructurendeploying their own infrastructure al

4、lows the mvno to offer value-added services.nthe goal of offering value-added services is to differentiate versus the incumbent mobile operator.nthis allows for customer acquisition and prevents the mvno from needing to compete on the basis of price alone.7outlinenwhat is an mvno?nwhy do we need mvn

5、os?nwhat are the opportunities and risks?nwhy would mnos go along?nwhere are we today?8why do we need mvnos?nmany western european markets are reaching saturation.nincreasing competition is reducing voice prices.nfuture growth must be driven by new services.9where will the services come from?nan mno

6、 does not have the content and applications to succeed in a wide variety of services.10where will the services come from?nan mno does not have the content and applications to succeed in a wide variety of services.11outlinenwhat is an mvno?nwhy do we need mvnos?nwhat are the opportunities and risks?n

7、why would mnos go along?nwhere are we today?12what are the opportunities?nparticipating in mobile boomndifferentiate and expand own servicesncovering a niche which mnos do not servendeveloping a sustained customer relationshipndistribution of own contentncross selling to existing customer basenlever

8、aging own distribution networknleveraging existing strong brand13what are the risks?nmvno introduces additional competition into the market, driving down marginsnmvno will pay higher costs for network usage than mno. so, mvnos need to either generate more revenue or cut costs in a way mno cannotnnet

9、work quality level cannot be controllednhigh customer acquisition cost if no brand and distribution available14what are the risks?ndirect subscribers are almost always more valuable to the host network than subscribers from mvnos because the host network operator gains revenues from both airtime and

10、 vasnnetwork operators will prioritize their own subscribers above those of an mvno if bandwidth is a limiting factornthis could lead to nonrenewal of an mvno agreement in order to recoup the network capacity15how to succeednthe mvnos that survive will be those with usage profiles that are complemen

11、tary to that of the host network16outlinenwhat is an mvno?nwhy do we need mvnos?nwhat are the opportunities and risks?nwhy would mnos go along?nwhere are we today?17why would mnos go along?nmobile network operators must carry a heavy financial burden because of umts (expensive license costs, network

12、 construction, and marketing costs)n3g terminals are likely to be costly relative to 2g, so the subscriber acquisition costs will be significant3g 2g$ $18how mvnos helpnthe network operators with 3g licenses will be very keen on filling the network with traffic, and mvno is a way of selling network

13、capacity in order to recoup their investmentsntraditional mobile network operators can broaden its customer base at a zero cost of acquisition19outlinenwhat is an mvno?nwhy do we need mvnos?nwhat are the opportunities and risks?nwhy would mnos go along?nwhere are we today?20where are we today?21type

14、s of mvnosnmvno mobile virtual mobile operatorsnall the major mobile network operators are looking at the possibility of becoming an mvno and establishing themselves outside their existing markets telianbvmo branded virtual mobile operatorsnvirgin mobile, wireless car volvo, toyotanwill be more crea

15、tive and customer-oriented than traditional mobile network operatorsnwill represent a big part of the mobile network market in the long term22where are we going?neurope over 20 mvnos operatingnstandard gsm network makes it easier for carriers to trade network capacitynasia hong kong requires 30% of

16、its spectrum be allocated to mvnosnvirgin launched first asian mvno in singapore last novembernvirgin plans to announce partnerships in hong kong and taiwan soonnvirgin hopes to launch 3g mvno services in 10 asian countries23where are we going?nus virgin and sprint signed mvno deal in octobernpotent

17、ial contenders are mtv networks, aol time warner (at&t wireless), and radioshack, all of which have brand recognition with an available distribution channelnaol is even in talks with network operators in other countries24conclusionnmvnos are here to staynmnos will not be able to resist the incre

18、ased revenue stream to amortize the costs of 3g investmentsnthere will be a wide variety of mvnos filling niche marketsnmvnos are the only way to drive revenue growth with the saturating voice market25what has happened recently?ndeutshe telekom buys voicestreamnvoicestream has been relaunched as t-m

19、obilent-mobile acquired mobilestar network and renamed it the t-mobile hotspot networknt-mobile hotspot provides wireless internet access via wi-fi 802.11b wireless network. nt-mobile hotspot has the largest footprint of active broadband wireless sites and is continuing to build-out the wi-fi 802.11

20、b wireless lan network of public internet access locations. (see my services presentation)26what has happened recently?nus virgin mobile begins servicenvirgin mobile usa (vmu) has recognized that the youth market is an under-penetrated market. by offering services such as instant messaging (im), gam

21、ing, and music to the mobile phone, it plans to claim a high percentage of those customers.nthe demographic virgin is going after is one that is complementary to that of the host network (sprint), who targets mainly older, business oriented people.nvirgin mobile uk is now the second fastest growing

22、carrier in the country. but the carrier is not yet profitable and does not have major market share. the us market is very different than the uk, and vmu will likely have a much more difficult time achieving success in this country.27what has happened recently?nus virgin mobiles challengesnvmu does n

23、ot view the lack of major prepaid service in the us as a disadvantage, but rather, an opportunity to target an under-penetrated market and make prepaid service mainstream. one serious challenge is that prepaid churn is significantly higher than postpaid churn.na challenge that vmu will face is one of building name recognition. while the virgin brand is well known in the uk, where virgin group operates over 50 virgin-branded companies including an airli