The Emergence of Mvnos

7/30/2019 The Emergence of Mvnos

1/31

The emergence of MVNOs Providing new opportunities

for MNOs and MVNOs


2/31

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


3/31


Meet Todays Team!

Stephen Breen Head of Roaming

Xavier Bourgois Senior Roaming Product Mgr.

Frank Salembier Mobile Data Account Mgr.


4/31

The challenge of roaming

for MVNOs


5/31


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


6/31


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


7/31


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


8/31


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


9/31


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


10/31


Why can an MVNO fail?

1) Brand rationalization

2) Lack of demand

3) Lack of funding

4) Regulatory5) Unprofitable


11/31


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

Theimagepart with relationship ID rId3wasnot found in thefile.


12/31

The opportunity of

EU regulation


13/31


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

Theimagepart with relationship ID rId8wasno tfound in thefile.

Impact of new EU regulations


14/31


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


15/31


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


16/31


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


17/31


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


18/31


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


19/31

BICS hybrid roaming


20/31


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


21/31


MVNO roaming optimisationBilateral

RoamingDual IMSI

Roaming Hub

Single IMSIRoaming Hub


22/31


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


23/31


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


24/31


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


25/31


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


26/31


27/31


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


28/31

Conclusions


29/31


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


30/31

Thank You!

Stephen BreenHead of Roaming - [email protected]+ 353 87 11 6 10 10

@BICSEvent mentioning:#WS_roaming


31/31


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

Documents

The Emergence of Mvnos