1. Becoming an MVNO / MVNE
Identifying new business opportunities
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2. Becoming an MVNO / MVNE
Categories of MVNOs - overview
• Discount MVNOs – providing
competitive prices, typically with lower
revenue per customer, often in the
prepaid-only model; typically offering
simple services (e.g. voice and SMS
only) and cheaper handsets
• Niche MVNOs – providing tailored
services to niche markets (youth, ethnic
groups or specific business users); these
segments require specific offerings with
many value-added services and add-ons
for the service to be found attractive by
potential customers
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3. Becoming an MVNO / MVNE
Categories of MVNOs - overview
• Retail MVNOs – providing services for end customers via existing points of
sale; subscribers can purchase a SIM card and top-up their account during
a visit to a supermarket
• Advertising-Driven MVNOs – providing a specific amount of free minutes,
SMS and content to their subscribers, in exchange for sending
advertisements to subscriber mobile phones
• Brand MVNOs – providing similar offerings as traditional mobile operators
but taking advantage of their strong, recognizable brands and customer
loyalty
A lot of MVNOs originate from industries other than
telecommunications!
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4. Becoming an MVNO / MVNE
The MVNO value matrix
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5. Becoming an MVNO / MVNE
MVNO – how to choose a business solution?
• As an MVNO you should take the
following key factors into account
when choosing a business
solution:
• Easy service construction – reduces
development and deployment time
and cost
• Low cost of operations
• Fast innovation – required to attract
new customers and retain current
ones, enables a fast response to
offers from competitors
• System flexibility – readiness to
cope with a broad range of today’s
and future services
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6. Becoming an MVNO / MVNE
Possible deployment models for an MVNO solution
• Single MVNO model
• the MVNO platform is hosted by the platform vendor (in a data
center) and runs solely for the virtual operator
• the MVNO negotiates the traffic wholesale agreement with the
mobile operator by itself and utilizes the outsourced platform,
takes care of appropriate marketing and sales channels
management
• advantage = no intermediate party between the network
operator and the MVNO in this case
• disadvantage = economies of scale when it comes to
deployment and maintenance are not fully utilized
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7. Becoming an MVNO / MVNE
Possible deployment models for an MVNO solution
• MVNO aggregator model
• third party („aggregator”) plays the role of a middleman between the
mobile network operator and multiple MVNOs
• the aggregator is responsible for negotiating the agreement with the
MNO and resells the traffic to all MVNOs hosted on the platform
(maintained by the platform vendor and hosted in data centers)
• MVNOs are responsible only for the front-office operations of their
mobile businesses
• advantage = further reduction of up-front investments necessary to start
the operations
• disadvantage = aggregator applies its margins using the costs of the
mobile operator’s network capacity usage
• Multiple MVNO model - the third party is not involved and the mobile
operator deploys its own mobile virtual network enablement platform
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8. Becoming an MVNO / MVNE
Possible deployment models for an MVNO solution
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9. Becoming an MVNO / MVNE
New business opportunities for MVNOs
• increasing need for mobile operators to fill their networks
(e.g. 3G or 4G)
• regulators will demand further roaming and interconnection reductions
• mobile-only operators will lower
prices to advance fixed-mobile
substitution
• new companies with disruptive
technologies (like VoIP) will
compete by offering even
cheaper voice packages
The number of subscriptions to MVNO operators and resellers is
forecast to grow 44% from 104.1 million at end-2009 to 150.3 million
by end-2013 – a compound annual growth rate (CAGR) of 9.6% (
Global MVNO Markets report, Informa Telecoms & Media)
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10. Becoming an MVNO / MVNE
Win-win situation (MVNO vs. mobile operator)
• An MVNO can convince a mobile operator by offering:
• Analysis of new market opportunities demonstrating potential new
revenue streams
• Evaluation of new revenue streams and revenue sharing offers to provide
money making opportunities for both parties
• New distribution channels and services targeting new customers in new
niche markets
• Possibility to reduce churn and increase customer retention by providing
better customer care within segments and by utilizing MVNO’s brand
loyalty
• Established chain of partners providing content or VAS
• Increased reach and scope of the offer - consumers get a wider choice
(MVNO offer vc. host operator’s offer) – which increases the chance of
them choosing the host network
• Lower costs on marketing, customer acquisition and maintenance,
handset subsidies
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11. Becoming an MVNO / MVNE
An MNO-MVNO cooperation model
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12. Becoming an MVNO / MVNE
Comarch solution - logical architecture
The diagram presents the logical architecture of the full Comarch MVNE solution and
possible interaction between platform components, a hypothetical environment of one
MVNO and external or third-party systems. Depending on your needs, Comarch is able to
build an IT platform of all or a subset of the above. Modular architecture makes it
possible to upgrade the platform in the future as new requirements are identified.
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13. Becoming an MVNO / MVNE
Comarch solution for MVNOs – basic facts
• References
(Single MVNO model) (MVNO aggregator model)
• Comarch can offer you a one-vendor, pre-integrated and
preconfigured solution
• We can provide a complete MVNO and / or MVNE platform
• Learn more: http://mvno.comarch.com
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