Mobile virtual network operators (MVNOs) are changing how mobile network operators (MNOs) acquire and retain customers. MVNOs can target the same low-cost, no-frills customers as MNOs, putting pressure on MNO pricing and strategies. However, MNOs still hold an advantage through their control of the core mobile network and ability to offer richer service environments appealing to customers seeking more than just low prices. For both MVNOs and MNOs to succeed, they must understand their respective strengths and weaknesses, the needs of their target customers, and be willing to engage in productive long-term partnerships.

1. How is MVNO:s changing MNO:s acquisition &
retention and more…From a personal perspective
Freddy Lundmark, MVNO Products & Service Delivery Manager
May 14, 2009 at the MVNO Industry Summit 2009
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2. The Next 25 minutes...
• Change of MNO Acquisition & Retention Strategies?
• Can both go after the same customers? Who will win
out and why?
• Richer Service Environment vs. Low-Cost-No Frills?
• Why does MNO:s negotiate at all?
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3. Freddy Lundmark
MVNO Products & Service Delivery Manager
• Europolitan
• Europolitan Vodafone
• Vodafone
• Telenor Sweden
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4. Understanding today's situation
by understanding the past...
• Original Wholesale Strategy
• Regulator
• Over-capacity - What a word!
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5. "If you can't beat them - join
them and make some money on
it! Turn it into an profitable
affair!"
Europolitan's orginal Wholesale "Strategy" in 2001
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6. Terms...
so that you know what I mean when saying...
• Mobile Virtual Operator (MVNO)
• Service Provider (SP)
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7. What's the difference..?
• Freedom vs. Simplicity
• Investments vs. Pay-as-you-grow
• Term used will be MVNO for both
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8. Where does this leave us now?
How is an MNO influenced by an MVNO?
• First reaction...
• Second reaction…
• Now – here we are. What do we do now?
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9. Service Environment vs No-frills
How to do as MNO?
• Brand Power!
• What can I do that my virtual competitor can't?
• Brand preference?
• Is this our customers?
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10. "It's in the long term a Dead-End
trying to emulate the No-Frills,
Low-Cost business model for an
MNO"
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11. What about the MVNO then?
What shall they do?
• Yes! It is important!
• Emotional Driven Business Decisions
• Help the Wholesale Department to Convince
• Confidence and trust is very important
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12. Can Both Go After The Same Customers?
Who will win out & why?
• Yes & No
• Yes - It's possible
• No - It's not good business
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13. "Hey There - Come to us! We are
on xxx: network - the same
network as you have today! You
will have the same network
feeling and coverage as today
but you will pay less!"
Real World argument heard from on an MVNO
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14. “We don’t believe in our Brand
Strength and Core Proposition
ourselves either so let’s do a
copy-paste on our host and use
their Brand Strength"
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15. "You want some more
functionality. OK! - Tricky, lot to
do internally - Can't promise
anything…
By the way - your Wholesale
prices must be increased due to
market fact A, B and C. Don't
call us - We'll call you!"
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16. “The MNO will probably always
win this kind of battle - they
control
THE MOBILE NETWORK!” 16

17. It takes two to Tango!
MVNO Part
• Who's your customer
• Get to know them inside - out!
• Team up with small MNO
• Money & Time
• Long-Lasting partnership
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18. It takes two to Tango!
MNO Part
• Trust your Brand Strength
• Myth of Cannibalization
• Is my Brand the right Brand?
• Is someone else doing this better than me?
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19. MVNO:s as a Pressure Group
Why does MNO:S negotiate?
• Early Stage - Window of Opportunity
• Grow Base in mature market = Buy Customers from
Competitor
• Money Talks
• Bottom Line
• Business on the Margin
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20. "What choice do I have?”
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21. "To have the competition AND
the revenues or only the
competion - that's what I have
to choose from!"
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22. Welcome to Telenor
…if your are planning to expand your Business to Sweden
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