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Virtually Brilliant MOBILE BUSINESS Virtually brilliant The world of MVNOs is growing, with 2012 seeing the growth of many of these businesses plus MVNAs growing in strength, despite or perhaps because of the current tough market conditions. Here, Heather McLean asks where this market is right now, where it’s going, what value MVNOs add to the mobile market and if 4G services have a role to play in the future of these businesses. he UK MVNO market is going from strength operator has launched MVNO services outside of Tto strength this year. According to Jason China. We also announced a strategic partnership Bellman, director of MVNOs at EE, the market is with MVNA Atmovia to support us when dealing starting to look up and that is increasing interest with large customer bases, with an out of the in the launch of new businesses. He explains: box capacity to manage up to seven million “The market is the most active we’ve seen in subscribers,” notes Bellman. the last two years and we’re witnessing lots of “Customers’ needs are also becoming interest in our network, so it’s a really exciting more sophisticated so we’re evolving the way time. As businesses are feeling more certain we support our MVNO partners to advise on about the economic outlook, there is renewed everything from infrastructure and architecture to interest in launching a new brand in the market. propositions and innovative services like mobile “Established brands that already have a large commerce,” he adds. customer base, a well known brand and a strong retail footprint see mobile as an opportunity to Huge growth grow their existing business,” continues Bellman. While Nick Parbutt, head of wholesale at “This interest is coming from a number of brands Vodafone, comments: “We are seeing that MVNO across consumer and B2B sectors, which we shares of retail revenues continues to increase haven’t seen in the past two years, as well as in the UK market, with this growth driven by interest through our aggregators.” some very large players continuing to develop For example, Bellman adds that EE worked and mature as mobile operators, such as with its MVNA, Transatel, earlier this year to Tesco, Lebara, Talk Mobile and Virgin. There are launch China Telecom as an MVNO. “The deal newer players gaining traction as well, such as Nick Parbutt, head of marked the first time that a Chinese telecom TalkTalk.” wholesale at Vodafone An example of brands hitting the MVNO scene own special blend of products and differentiated Transatel on MVNOs and MVNAs include the many working services through the exploitation of their own Mobile virtual network operators (MVNOs) have existed in with EE, which currently intelligent network infrastructure. MVNOs do this the UK for over ten years now. There has been a trend moving has the following MVNO to enable them to offer innovative promotions from a few large MVNOs, such as Virgin, Tesco and BT, to a partners: Virgin; Hutchison and services to their customer base, commonly more distributed model using the aggregator or mobile virtual 3(UK); Telecom Plus; Ikea; an ethnic or special interest group. This avoids network aggregator (MVNA) approach (which is what Transatel Vectone; Nowmobile; Matrix; them having to compete with the mobile network is,) as the opportunities became smaller. Econet; Lycamobile; Cable operators on price.” Initially mobile network operators liked to maintain as and Wireless; i-Pass; Talk Talk The increase in MVNOs is increasing the much control as possible, contracting for MVNOs only with Business; and Intercity. In rise of the MVNA, comments Ballard. MVNAs the large players who could commit to significant volumes. addition the following MVNOs aggregate demand from smaller MVNOs and As the opportunities shrank, mobile network operators looked are on Everything Everywhere’s purchase mobile airtime in bulk from a partner for alternative delivery mechanisms to address the market network through Transatel: mobile network operator, such as Vodafone in the demand; this led to the MVNAs. China Telecom (Europe); Axis case of Cognatel. “MVNAs provide the underlying An MVNA is a service company that buys mobile airtime Telecom; Unicom; Priyo; The systems, platform and value added services to from the mobile network operators and adds its own technical Phone Co-Op; Shebang; Apollo; multiple MVNOs, with the aim of reducing the services and sells an integrated mobile service package to Zamir Telecom; Team SIM; and overall operational cost,” comments Ballard. MVNOs. They meet the needs of the mobile network operators Natterbox. MVNAs are continuing to provide value to this by providing a more flexible technical infrastructure than the And the reason for this growing market, states Parbutt: “MVNAs provide network operators could ever achieve. This enables them MVNO growth, Nick Ballard, an important role in the market by enabling to bring new and smaller MVNOs into the market, which an director of mobile, Geo smaller MVNOs to join the market. Those MVNAs operator would not be able to service properly themselves. Networks, states, is simply the that we see as being successful are those that They meet the needs of MVNOs by reducing set up costs great business plan the model are selective about the MVNOs that they enable and time to market. They also provide the technical knowhow, creates: “MNVOs will commonly and subsequently work with to develop long term leaving the mobile network operators to focus on proposition treat the host mobile network partnerships. We also believe a close working development and sales and marketing activities. operator’s infrastructure as a relationship with the host mobile network means to an end, offering its operator is a prerequisite for success.” MOBILE BUSINESS Viacloud’s Atmovia platform offers “Those MVNAs that we see as MVNOs greater control being successful are those that In August, EE announced a strategic partnership with MVNA Atmovia, the UK wholesale subsidiary of the Viacloud are selective about the MVNOs Group. Atmovia invested in deep end to end technology from that they enable and subsequently Nokia Siemens Networks to enable the platform to support work with to develop long term the launch and growth of MVNOs on the EE network. Atmovia has the unique capability among MVNAs of dealing with large partnerships.” Parbutt customer bases, with an out of the box capacity to manage up to seven million subscribers. MVNOs also add a lot of value to the mobile Help or hinder The state of the art embedded technology also allows market, states Bellman. He comments: “First and On what is going to MVNO customers to benefit from a highly agile and user foremost it means increased competition and influence and help or hinder friendly platform. Where previously it might have taken many therefore more choice for the consumer. We have the growth of the MVNO and weeks for an MVNO to create and roll out a new tariff, with the invested millions in the EE network to ensure MVNA markets over the next Atmovia platform it can take just ten minutes through a self end users receive the best possible service 12 months, Parbutt comments service, branded portal. and whether it’s directly through our brands or that there are two major effects Ahmed Alumran, managing director of the Viacloud Group, through our MNVO partners, we’re helping to that Vodafone believes will said: “We have made a significant investment in the Atmovia support the wide range of needs for consumers drive the MVNO market over platform and our relationship with Everything Everywhere, and enterprises across the UK.” the next 12 months. “These because we believe there is a very real market opportunity are the growth in smartphones in providing this level of infrastructure and functionality to and data, coupled with the MVNOs in the UK and across Europe. Our aim is to enable Juice offers complete control consumer’s desire for value in our MVNO partners to achieve their growth and profitability Juice mobile, an MVNO utilising the a flat economy,” he explains. objectives with the knowledge that they are backed up by Vodafone network, provides channel partners “Those MVNOs that can meet both the UK’s largest mobile network, and the most advanced complete customer ownership, as well as this need through competitive mobile platform available.” control over price and branding, providing the contract offers, or pay as you Richard Williams, chief operating officer at Atmovia, said: ability for channel partners to build real asset go bundles that mirror contract “We don’t believe that anyone else has done what we have; value into their business. offers, will be those that have investing in the highest-spec, carrier grade technology for Gavin Raines commented “Owning a greatest successes in this our platform, and taking the time to fully integrate it with customer contract is an asset that businesses market. our mobile network operator partner. Our MVNO customers thrive on, nurturing and protecting them “Over the next 12 months will benefit from this investment directly, as they are able from the outside scary lure of the world of MVNAs will benefit from the to quickly react to changing market conditions and offer competitors is something which one may growing number of businesses their own customers the flexible and high quality service take for granted………or maybe not. In the that are seeking to use mobile they expect, on a network that, like us, is investing great wonderful world of mobile, filled with platinum to stimulate their revenue amounts of time and money to provide the best service for its partners and centres of excellence these growth and create value in a customers.” business don’t get the same level of freedom.” depressed economy,” Parbutt When you compare the market the continues.
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