What is an MVNO

Andrew WhiteFounding Partner, Piran Partners+44 87 087 99 300www.piranpartners.com10 Fitzroy Square, London, W1T 5HP

O

MVNO – A definition

Th t MVNO diff t thi• The term MVNO means different things

• Even the term MVNO is disputed some• Even the term MVNO is disputed, some– MVNO is an abbreviation for Mobile Vi– VMNO is an abbreviation for Virtual Mo

• The mobile industry has supported Serorigins, mainly due to a regulatory modcompetition between Racal Telecom (nmmO2 o2 Telefonica)mmO2 o2 Telefonica)

• The boundary between the definition ofService Provider (ESP) and MVNO is b

t diff t ls to different people

e refer to an MVNO other to an VMNOe refer to an MVNO other to an VMNO.rtual Mobile Networkobile Network Operatorp

rvice Providers (SP) extensively since its del introduced in the UK to foster now Vodafone) and British Telecom (now

f a Service Provider (SP), Enhanced blurred.

The key MVNO tests

Th f ll i k t t t d t i• The following are key tests to determin– Does the entity own a national GSM or UMTS spectrum

• Yes - then the arrangement is most likely a NationaN ti• No – continue.

– Is the host MNOs brand significantly visible in the entitie• Yes - not an MVNO – most likely to be a Service Pr• No – could be an MVNO or ESP• No – could be an MVNO or ESP.

– Does the entity set its own go to market proposition and• No - then the arrangement is most likely a Service • Yes – could be an MVNO or ESP.

– Does the entity integrate with the host MNO, for exampvalue added features which require intervention in the c

• Yes – most likely that the entity is an MVNO.N ld b SP ESP• No – could be SP or ESP.

– Does the entity receive a share of inbound termination • Yes – most likely that the entity is an MVNO.• No – could be MVNO SP or ESPNo could be MVNO, SP or ESP.

if tit i MVNOe if an entity is an MVNO:m licence?al Roaming Agreement.

es go to market proposition?rovider (SP).

d tariff plans?Provider (SP) Agreement.

ple: to terminate traffic, or handle call control, or offer specific core network?

revenues?

Tests which are not relevant

Th f ll i t t t l t t d• The following tests are not relevant to d– Does the entity own or operate its own billing sy

• Why? Historically Service Providers (SP) havrely on the host MNO to provide branded billi

– Does the entity own a GSM guard band licence?• Why? Just because an entity owns a GSM gu

provide a national roaming agreement. – Who owns the customer?

• Why? A Service Provider (SP) legally owns t– Who is responsible for bad debt?

• Why? A Service Provider (SP) may be legall– The entity is a licensed GSM operator in anothe

(GSMA)?• Why? This fact is not relevant to the national

d t i if tit i MVNOdetermine if an entity is an MVNO:stem?ve operated their own billing systems. Some MVNOsng services.?uard band licence does NOT oblige any MNO to

the relationship with the customer.

y responsible for default by the customer.r jurisdiction and member of the GSM Association

l jurisdiction.

Components of an MVNO

05LL

P 20

0ar

tner

s L

Pira

n P

a©

P

Our mission: To provide clear, practical and straightforward commercial advice to our clients in the Telecommunications, Media and Technology sectors

Piran Partners Engagement footprint

Piran Partners Methodology VPP™ (Virtual Partner Programme) VPP (Virtual Partner Programme)

• 3rd Party – VPP for MVNOs3rd Party VPP for MVNOsEngagement process used to secure wholesale agreements with mobile operators for third partiesfor third parties.

• Operator – VPP for CarriersOperator VPP for CarriersProcess enables operator to define or improve their wholesale strategy, identify which partners to target and which products and services to offer, while understanding the operational impact on the business.

Proposition Development

• The Scienceand the Art of pricing

• Use the Price Sensitivity yMeter and Focus Group researchresearch

Financial wholesale modeling

Five Top Tips G i i MVNO tGaining MVNO agreements

• Get the story straightGet the story straight– Don’t approach MNOs until the story and strate

B li ti• Be realistic– Both with revenue projections and timeline expe

• Being conscious of the MNO’s hidden h– Hidden icebergs waiting to hole your pitch

• Ensure that everything is consistent– Often two levels of detail in advance

• It takes longer than expected– Be patientBe patient

gy stands up from all angles

ectations

hurdles

Contact Piran Partners

Andrew WhiteFounding Partner Piran PartnersFounding Partner, Piran Partners

+44 87 087 99 300www piranpartners comwww.piranpartners.com10 Fitzroy Square, London, W1T 5HP