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MVNO SERVICE 2017

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MOBILE NETWORK OPERATOR or HNO - HOST NETWORK OPERATOR Is a Mobile Network Operator which owns its own network infrastructure and allocated spectrum. A MNO is also referred to as a HNO – Host Network Operator, when it is hosting MVNOs on its network.

MOBILE VIRTUAL NETWORK OPERATORIs an organization, which offers mobile services similar to a MNO, however the MVNO does not have its own spectrum. Instead it enters into an agreement with either a MNO or MVNA to buy bulk access to the MNOs network at wholesale rates, and then sets its retail prices and service independently. The MVNO may use its own operational components, OSS/BSS - or employ the services of a MVNE.

MOBILE VIRTUAL NETWORK AGGREGATORIs an entity, which purchases mobile airtime in bulk from the partner MNO, and then wholesales this airtime and service to multiple MVNOs, who each in turn resells the mobile service to its customers.

MOBILE VIRTUAL NETWORK ENABLERIt is an entity, which provides infrastructure and services to both MNOs and MVNOs, which enables MVNOs to offer their services via the MNOs network, while leaving the back-end enablement to the MVNE. The MVNE provides services, such as billing, business workflow, product setup, service delivery, customer care, fraud management, web services, reporting, sale platforms, etc.

MVNE

MVNO

MVNA

MVNE

MNO

DEFINITIONS USED THROUGHOUT THIS DOCUMENT

CORPORATE INFORMATION

WHAT WE DO

We assist private and public sector clients in their decision making through market insights, experience and technical skills. Our clients includes: MVNOs, Telecom operators, Governments, Regulators, Investment firms, Device manufacturers, Service providers, Media & Broadcasting companies.

HOW WE DO IT

We approach consultancy engagements from a commercial perspective, with the aim of adding significant value to your business by identifying and pursuing: growth opportunities, create products, services, and businesses that improve the efficiency, productivity, and profitability of your business.

WHAT WE DON’T DO

We don’t promise what we cannot deliver. Our focus is within our core competencies.

YOZZO COMPANY LIMITED

Yozzo is an experienced consulting firm based in Bangkok, Thailand. We provide consultancy service for MVNO's, Telecom Operators, Broadcasters, Governments, and Investment firms.

Founded: 2005Office: Bangkok, ThailandCompany Type: Company LimitedManaging Director: Allan RasmussenGeographic Scope: Worldwide

OUR FOCUS IS HELPING MVNOS WORK SMOOTHLY AND PROFITABLE WITH MNOS AND VICE VERSA

MNO MVNO EXPERIENCE SUCCESS

In our experience, companies who wish to extend their brand, service or customer base into offering mobile services as an MVNO, are often blocked by the challenges on how to set up and successfully operate an MVNO.

On the other hand, mobile network operators, understand that they can gain profitable growth by adding valuable traffic to their network through MVNOs, but are challenged with how to implement this practically.

WE BRIDGE THE GAP AND CREATE A TRUE WIN-WIN

THE KEY TO YOUR MVNO SUCCESS

A. ENTRY STRATEGY

ANALYSIS OF THE MARKET

• Regulatory environment,• Legal compliance• Market trend,• Competitors,• Segments

CREATING THE MVNO ENTRY STRATEGY

• Segments to be served,• Value proposition,• Stakeholders (MNO, partners),• Commercial offer (service, pricing)

DEFINING THE MVNO OPERATIONAL MODEL TO BE IMPLEMENTED, ACCORDING TO THE ENTRY STRATEGY

ASSESSING THE ASSOCIATED RISKS AND KEY SUCCESS FACTORS FOR THE PROJECT

B. MVNO BUSINESS CASE

DEVELOPMENT OF THE BUSINESS CASE

• Revenue model,• Traffic cost,• Subscriber acquisition cost (SAC),• Operating expense (OPEX)

CAPITAL EXPENDITURE (CAPEX)

• IT Systems/Platform,• Network,• Distribution channels

FINANCIALS

• Sensitivity scenarios with the main variables

FINANCIAL ASSESSMENT OF KEY PERFORMANCE INDICATORS

• (NPV, IRR, Peak funding, Risk Analysis)

GO / NO GO DECISION >>

C. MNO NEGOTIATIONS

INFORMATION PACK TO BE DELIVERED TO THE MNOS

• Full value proposition to the market,• Full value proposition to the MNO

CREATING THE NEGOTIATION SUPPORT TOOLS BASED ON THE INTERNAL BUSINESS CASE

COMPARING MNO WHOLESALE QUOTATIONS (Technical and Economic)

MoU TO BE SIGNED WITH SELECTED MNO

CONTRACT PREPARATION

• Documents (Main contract, annexes),• Price Review mechanism,• KPIs and SLAs

REACH MNO AGREEMENT >>

PHASE 1 – ANALYSING THE OPPORTUNITY, DEFINE THE BUSINESS BASE, AND MNO CONTRACT NEGOTIATION

D. LAUNCH ROADMAP

DEFINITION OF THE MAIN ACTION ITEMS AND THE PROJECT PLAN FOR THE LAUNCH

CONFIGURATION OF THE PROJECT MANAGEMENT OFFICE AND KEY TASKS FOR THE LAUNCH

SELECTION OF THE MAIN RESOURCES NECESSARIES FOR THE LAUNCH

• Partnership strategy,• Screening of Support Providers,• Headcount,• Channel alliances

TECHNICAL IMPLEMENTATION PLAN

E. IMPLEMENTATION

DEFINITION OF THE MVNO ENTRY STRATEGY

• Detailed Market segmentation,• Product and Services Roadmap,• Pricing Strategy,• Value Proposition for every market

segment,• Channel strategy,• Alliances

PROJECT SUPERVISION AND COORDINATION

PRE-LAUNCH CAMPAIGN

LAUNCHING OF THE COMMERCIAL ACTIVITIES

PHASE 2 – MVNO LAUNCH PREPARATION AND IMPLEMENTATION

SERVICE EXAMPLES -1/2 PROJECT SCOPE AND DELIVERABLES

MVNO/MNO NEGOTIATIONS Negotiation of MVNO wholesale agreement

Negotiation of additional terms

Contract review and advice

PRODUCT & SALES PLANNING

Product/Service Planning

Market Segmentation and data

Market forecasts and modelling

Marketing Planning and costing

DEVELOPMENT OF BUSINESS PLAN

Corporate Strategy

Financial planning and modelling

Investment analysis

Operation planning

Product and Marketing

LICENSE APPLICATION Advise and experience in relation to submitting for MVNO license

Business planning and modelling with a focus on the application

Preparation of License Application documentation as required by the telecom regulator.

This example project assumes that the objective is a comprehensive launch and operation of a profitable full MVNO, but that the actual launch, after a successful win of the license and wholesale agreement, as well as the ongoing operation of the MVNO, are subject to separate consultancy proposals. Hence, a project example scope and deliverables can be outlined, as follows:

EXAMPLE

SERVICE EXAMPLES - 2/2 PHASES

PHASE 1

• Initial advice to determine opportunities and strategies

• Commence business planning

• Support on MNO negotiations

• Initial marketing plan analysis

PHASE 2

• Finalization of MNO negotiations (at least sufficient to support the license application and other financial planning)

• Identify and arrange for a suitable technical platform provider with high level international experience from similar projects

• Identify missing or desired extended features

• Commence the development of a high level marketing plan

PHASE 3

• Technical planning

• Finalization of high level marketing plans and costing

• Finalization of agreement with technical platform provider

• Finalization of operations plans and costing

• Finalization of financial plans and models – license and operational

• Develop deployment plan

• Finalization of all other business planning

• License application inputs

PHASE 4• Advise and experience in relation to finalization of all Application documentation for submission to the telecom regulator

• Detailed preparation of License Application to the telecom regulator

Following the Project Scope and Deliverables outlined in the previous section, a sequence of natural phases can be identified and below is illustrated for each phase the activities where Yozzo will pay special attention in its advice and support. This provides transparency into the project and relates the budget into parts for internal budget management.

EXAMPLE

SERVICE EXAMPLES - WORKSHOP

THE MVNO MARKET AND TRENDS

What trends are driving the development of the MVNO market?

What are the major growth segments in MVNO?

MVNO BUSINESS AND OPERATIONAL MODELS

What are the different types of business and operational models, and how do they differ?

How are these models evolving, and which is the most appropriate?

What network elements does an MVNO need to own or control, and why?

MVNO ECONOMICS AND COMMERCIAL NEGOTIATIONS

How can the MVNO operation be kept lean?

What is involved in structuring tariffs and bundles?

What makes a winning MVNO / MNO partnership?

CONTRACTUAL AND REGULATORY CONSIDERATIONS

What licenses are needed to operate an MVNO?

What should the contractual provisions of the MVNO agreement be?

What are the key regulatory issues?

MANAGING ARPU GROWTH AND RETENTION

How many and what kinds of partner should an MVNO have?

What makes a winning proposition, and how segmented should it be?

EXAMPLE

ALLAN RASMUSSENMANAGING DIRECTOR

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MVNO SERVICE