the emergence of mvnos
TRANSCRIPT
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The emergence of MVNOs Providing new opportunities
for MNOs and MVNOs
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slide 2 | BICS confidential | 1 October 2012
Agenda
The challenge of roaming for MVNOs
The opportunity of EU regulation
The opportunity for Mobile Operators
Conclusions
Hybrid roaming
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slide 3 | BICS confidential | 1 October 2012
Meet Todays Team!
Stephen Breen Head of Roaming
Xavier Bourgois Senior Roaming Product Mgr.
Frank Salembier Mobile Data Account Mgr.
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The challenge of roaming
for MVNOs
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slide 5 | BICS confidential | 1 October 2012
MVNO roaming
Mature MVNOs move to a Full MVNO Model
Full MVNOs have Own Core Network & IMSI Range Need to start Roaming Management From Scratch Require Outsourcing of Roaming Management
Global MVNO in 2015 :186 million subscriptions
North America and WesternEurope dominate.
MVNOs represent more than25% of roaming traffic in
some markets
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slide 6 | BICS confidential | 1 October 2012
What types of market player exist?MobileNetworkOperator
(MNO)
MobileNetworkEnabler(MNE)
MobileVirtual
NetworkEnabler(MVNE)
MobileVirtual
NetworkOperator(MVNO)
Brandedreseller
ServiceProvider
Mobile license
Mobile infrastructure
Direct customerrelationship
Network routing
Roaming agreements
Customer service
delivery
Billing
Mobile handsetmanagement
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slide 7 | BICS confidential | 1 October 2012
What are the industry trends?
Smartphone adoption is rapid Data usage is exploding
Handsets are becoming more sophisticated
Commercial models are evolving
More & more full MVNOs (rather than light
MVNOs that have less independence) Diversification beyond always following a Low
Cost mantra
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slide 8 | BICS confidential | 1 October 2012
Why are MVNOs creating interest? MNOs view MVNOs as outsourcing partners
MNOs are having increased difficulties in
targeting all local market segments
MVNOs are a medium for implementing amore specific Marketing Mix for niche
targeting
MVNOs alleviate certain costs from MNOs(e.g. Customer service, billing & marketing)
Overall; MVNOs help in churn reduction &revenue growth
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slide 9 | BICS confidential | 1 October 2012
Consider some MVNO market shares Germany 19%
Norway 16%
Netherlands 14% UK 13%
France 10%
Oman 9% (FriENDi & Renna)
Hong Kong 8%
USA 7% (Tracfone)
Denmark 5%
Australia 4% (Red Bull, Virgin & Boost Mobile)
Finland 2.5%
Japan 2% (JCI)
South America
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slide 10 | BICS confidential | 1 October 2012
Why can an MVNO fail?
1) Brand rationalization
2) Lack of demand
3) Lack of funding
4) Regulatory5) Unprofitable
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slide 11 | BICS confidential | 1 October 2012
BICS delivers roaming to MVNOs
Full MVNOs are outsourcing roamingManagement
Dual IMSI hubbing provides MVNOs withone step immediate worldwide roamingfootprint
Single IMSI hubbing provides a long-termsolution with ability to negotiate IOT
BICS provides an extensive roamingportfolio to deliver a one stop shop
roaming service to MVNOs
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The opportunity of
EU regulation
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slide 13 | BICS confidential | 1 October 2012
New EU roaming regulations will enforce opening of roaming withEuropean operators and stimulate creation of MVNOs in Europe
BICS supports & facilitates roaming agreement establishment
between MVNOs and MNOs via the OC Roaming hub A major additional Inbound traffic opportunity for connected MNOs
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Impact of new EU regulations
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slide 14 | BICS confidential | 1 October 2012
The new EU regulation details
Non structural regulation
New roaming regulation retails andwholesale price CAP enforced since June2012
Roaming enforcement
Structural regulation July 2014
EU and BEREC continuing discussions todefine the structural regulation that will
come into force in July 2014 Roaming decoupling
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slide 15 | BICS confidential | 1 October 2012
EU non structural regulation(July 2012)
New price CAPS MVNOs can ask MNOs for EU
regulated roaming rates
MNOs cannot refuse.
Draft agreement in 1 month
Fully operational within 4 months aftercontract signature
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slide 16 | BICS confidential | 1 October 2012
EU structural regulation(July 2014)
Regulations encourages new entrants Roaming & home services can be
contracted separately (3 Optionsunder discussion)
Opportunity for MVNOs to becomethe new roaming service providers
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slide 17 | BICS confidential | 1 October 2012
New EU regulations create
major opportunities for MVNOs More MVNOs are due to arrive
on the European market
Impact of new EU regulations
MVNO roaming creates an inbound traffic opportunity for
existing Mobile Operators
Roaming Hub will have a major role to play
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slide 18 | BICS confidential | 1 October 2012
The value proposition for MNOs Opportunity to terminate inbound MVNO roaming traffic from
BICS customers on your network
Traffic volume opportunity for MNOs
BICS takes the financial liability
No financial risk for MNOs
BICS is in charge of IREG/TADIG testing Limited MNO resources required
Cost for MNO is a revenue share model
No cure , no pay
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BICS hybrid roaming
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slide 20 | BICS confidential | 1 October 2012
Bringing value to MNOs & MVNOs MVNOs need MNOs to terminate roaming traffic
MNOs can increase revenue by engaging with MVNOsConstraints - resources, time & roaming skillsets
BICS can deliver Instant Roaming coverage to MVNOs
BICS can offer a gradual transition towards home IMSIroaming by connecting MNOs to MVNOs on the OCRoaming hub
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slide 21 | BICS confidential | 1 October 2012
MVNO roaming optimisationBilateral
RoamingDual IMSI
Roaming Hub
Single IMSIRoaming Hub
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slide 22 | BICS confidential | 1 October 2012
Instant Roaming hub(Multi-IMSI)
Reuse agreements of a sponsor
operator Requires a SIM applet to manage
IMSI swapMNO 1
MNO 2
MNO 4
MNO 5
MNO 3
OPX
OPZ
SponsorOperators
Home
IMSI
Sponsor 1IMSI
Sponsor 2IMSI
Sponsor ZIMSI
SIMApplet
Multi
IMSISIM
Worldwide Coverage
Voice/SMS CAMEL - 3G
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slide 23 | BICS confidential | 1 October 2012
One single step to enable global
roaming
Best approach for MVNOs & newentrants
All services supported : Voice, SMS,Data & CAMEL
Attractive IOTs
Transparent for end user: sameMSISDN and seamless userexperience
Instant Roaming hub advantages
MNO 1
MNO 2
MNO 4
MNO 5
MNO 3
OPX
OPZ
SponsorOperators
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slide 24 | BICS confidential | 1 October 2012
OC Roaming Hub
Open Connectivity
Roaming hubis a GSMA initiative
One single connection provideaccess to many roaming partners
1 contract, 1 bill, 1 payment formany roaming relations
Using home IMSI
Peering enable connection tocustomer of other roaming hubs
PeeredHubs
MNO 1
MNO 2
MNO 4
MNO 5MNO 6
MNO 3
RoamingHub
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slide 25 | BICS confidential | 1 October 2012
OC Roaming Hub Advantages
IREG and TADIG testingperformed by the roaming hub
Financial liability taken by theroaming hub
Billing, invoicing, settlement bythe roaming hub
IOTs discounts
PeeredHubs
MNO 1
MNO 2
MNO 4
MNO 5MNO 6
MNO 3
RoamingHub
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slide 27 | BICS confidential | 1 October 2012
BICS Hybrid Roaming
BICSOC Roaming
RoamingHub B
HubPeering
MVNOOC Hub
Relationship
BICS
Multi IMSI
MNOD
MNO
E
MNOF
Multi-IMSIRelationship
MNOG
MNOH
MNOA
MNOA
MNOA
MNOAMNO
AMNO
AMNO
AMNO
AMNOA
MNOA
MNOA
MNOAMNO
W
MNO
X
MNO
Y
MNO
Z
Multi IMSI roaming hub isused to provide globalroaming around the world
1 Step global roaming
As the traffic grows, OC Roaming
hub is used to enable roamingwith home IMSI to provide betterIOT rates bring user experienceto perfection
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Conclusions
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slide 29 | BICS confidential | 1 October 2012
Conclusions MNOs and MVNOs mutually benefit from engagingwith each other
Business constraints prevent them from doing this
BICS offers seamless solutions to make this happen
rapidly
BICS encourages MNOs to connect to the OC roaming
hub & dual IMSI hubs to receive significant MVNO
minute volumes
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Thank You!
Stephen BreenHead of Roaming - [email protected]+ 353 87 11 6 10 10
@BICSEvent mentioning:#WS_roaming
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slide 31 | BICS confidential | 1 October 2012
Opportunities & Future PlanningDifferentiators1) Retail Pricing
2) Customer Care
3) Billing Flexibility
Growth Opportunities
Hardware/Device companies offering Data services(More & more embedded SIMs & M2M Opportunities)
High street retail stores (This is a risky area as SIM
Swapping dominates e.g. Ethnic MVNOs & Price-sensitive subscribers)
WiFi Offload
M2M