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MNVO Valuation Progression
- 1. MVNO Valuation Progression Infrastructure build Nil Billing Call Control (IN system) HLR MSC InvestmentValuation Abilitytoservicethecustomer (valueofcustomerbase) • Margins improve because MVNO can optimise tariffs • Greater wholesale margin & reducing leverage from MNO • Wholesale margins low because MNO gets paid for all billing services • All leverage power with MNO Customer control increases with direct provisioning & control of services • Leverage largely with MVNO when MVNO “owns” the customer in HLR database • Could move customers to alternate carrier MNO independent * Valuation is a function of “leverage” & “control”
- 2. MVNO with Nil Infrastructure – Lowest cost model – Reliant on MNO for products & services, rates, tariffs, plans, provisioning & activation – Customer care harder to manage – Tied to one MNO for practical purposes – MNO owns the SIM Degree of Control Investment Valuation Min Max
- 3. MVNO with Customer Care & Billing – MVNO has control of rates, tariffs, plans, some provisioning & activation – Reliant on MNO for services – Tied to one MNO for practical purposes – MNO owns the SIM – Requires IT staff and billing team – Significantly improved wholesale margins – Improved margins from clients due to greater visibility and control Degree of Control Investment Valuation Min Max
- 4. MVNO with Customer Care, Billing & Call Control – Control of rates, tariffs, plans – Ability to define own services & products – Includes most provisioning & activation – Tied to one MNO for practical purposes – MNO owns the SIM – Great leverage with wholesale pricing – Choice of how to terminate calls Degree of Control Investment Valuation Min Max
- 5. MVNO with Customer Care, Billing & Call Control & HLR – Control of rates, tariffs, plans – Ability to define own services & products – Includes all provisioning & activation – Full Customer “Ownership” – SIM & MSISDN – Leverage to change MNO – Much easier to transfer customers Degree of Control Investment Valuation Min Max
- 6. MVNO with Customer Care, Billing & Call Control, HLR & MSC – Fully MNO independent – Roaming revenues – Ultimate leverage & transferability of the customers Degree of Control Investment Valuation Min Max