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Find Industry reports, Company profilesReportLinker and Market Statistics >> Get this Report Now by email!MVNO Operational Cost Planning: Modelling and NegotiationStrategies for Contracting with Host Mobile Network OperatorsPublished on August 2009 Report SummaryOverviewA Mobile Virtual Network Operator (MVNO) typically leases spectrum and mobile network infrastructure from a Mobile NetworkOperator (MNO), and then on sells these elements as telecommunication services at a profit markup and under a its own brand.Historically MVNO service offerings have included traditional mobile voice and data, however more recently we have seen businessmodels evolve to include such strategies as business to business (B2B) MVNOs that target, for example, the machine to machine(M2M), mobile banking, health and lifestyle industries.A critical aspect to the success of any MVNO is its wholesale negotiations with the host mobile network operator (MNO). This reportprovides valuable insights into the commercial models that are currently operational in todays MVNO market place. The report willelaborate on the rate structures of the retail minus and cost plus models, the pros and cons of each, and how to implement them. Thereport will discuss wholesale incentives, the reconciliation process and also what macro and micro environmental aspects to considerwhen defining your negotiation strategy.Target AudienceMVNOs start-ups: For senior level executives this report provides a detailed insight into the dynamics of the MVNO and operatorwholesale relationship. Examples of industry utilized wholesale rate models and recommendation on how to effectively establish yournegotiation strategy.Network Operators: For any network operator employee involved in the decision making process or deployment of a potential MVNOpartner. This report provides detailed insights into the background of the MVNO model, risk factors to be aware of when evaluating apotential MVNO partner and how to approach the negotiation process.MVNO Operational Cost Planning: Modelling and Negotiation Strategies for Contracting with Host Mobile Network Operators Page 1/5
Find Industry reports, Company profilesReportLinker and Market StatisticsSenior or Middle Management: For any mid to senior level management involved in the evaluation and decision making process foreither the hosting or launch of a potential MVNO, this report provides detailed insight into the technical, commercial and operationalframeworks required to successfully establish and maintain an MVNO HNO operation and wholesale relationship.Consultants: This report provides detailed insights into the MVNO models technical options and constraints, what elements toconsider when defining your technology strategy, recommendations on forecasting, interconnection methodologies and examplewholesale billing methodologies with calculations to help you define and create your wholesale rate sheet.Wholesale Billing Engineers: For engineers tasked with implementing wholesale billing platforms designed to invoice and reconcilewholesale airtime. This report provides step by step guidelines on how to calculate wholesale rating structures, billing processes andestablish effective billing dispute processes.Report Benefits- MVNO technology options- Wholesale Models - Cost Plus & Retail Minus- Invoicing, reconciliation and the dispute process- Recommendations for dealing with host MNOs- Negotiation Tactics for MVNOs contracting with host MNOs Table of ContentTABLE OF CONTENTS1. Introduction. 51.1. The MVNO landscape. 51.2. MVNO Background 51.3. MVNO technology options 72. Wholesale models. 102.1. Cost Plus model 102.1.1. Cost Plus rate sheet. 122.2. Retail Minus model 15MVNO Operational Cost Planning: Modelling and Negotiation Strategies for Contracting with Host Mobile Network Operators Page 2/5
Find Industry reports, Company profilesReportLinker and Market Statistics2.2.1. Straight retail minus. 162.2.2. Benchmark retail minus. 172.2.3. Retail Minus rate sheet. 192.3. Interconnect 202.4. Wholesale incentives 223. Invoicing and Reconciliation 243.1. Invoice dispute process. 253.1.1. Sample Invoice 274. Environmental considerations 294.1. Macro Environmental analysis. 294.2. Micro Environment analysis 305. Recommendations. 315.1.1. Knowledge & Expertise 315.1.2. Technology solution 315.1.3. HNO MVNO rate structure. 315.1.4. HNO Services list. 326. Negotiation tactics 336.1.1. Tell them what they want to hear. 336.1.2. Start high 336.1.3. Contract clauses. 347. Conclusions 357.1. Glossary of terms. 367.2. Appendix: Wholesale and Interconnect Settlement Calculation 37Table of figuresFigure 1- MVNO technology options. 9Figure 2 - Wholesale charges for network activity using the cost plus model12Figure 3- Segments diagram 14Figure 4- Wholesale charges for network activity using the retail minus model16Figure 5 - Calculating the straight retail minus. 17Figure 6 - Calculating the benchmark retail rate. 18Figure 7- Calculation for wholesale rate. 19Figure 8- Interconnect charging. 22Figure 9 - Wholesale rate variance calculation with Interconnect consideration. 22Figure 10 - Example HNO MVNO commercial relationship. 25Figure 11- Sample wholesale invoice page 1. 28Figure 12 - Sample wholesale invoice page 2. 29MVNO Operational Cost Planning: Modelling and Negotiation Strategies for Contracting with Host Mobile Network Operators Page 3/5
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