MVNO Prospects in Bangladesh

Mobile Virtual Network Operators (MVNOs) have its remarkable grip in the international mobile telecommunication industry and now it’s emerging and become business point of attraction within Asia. Though the term MVNO is not defined very well but as per our study over industry definition of MVNO and its’ business operations, we can determine the basic of identity of MVNO as they are basically resellers of mobile related services without owning any network infrastructure. MVNOs purchase airtime at wholesale rates from Mobile Network Operators (MNOs) and then resell wireless subscriptions to consumers through its own branding and other value added services. On the scale of its interconnection and service engagement with MNOs, MVNOs can be categorized basically in three (03) categories e.g. Full MVNO, enhanced service provider & reseller.

Another entity arises in between the MVNOs & MNOs named Mobile Virtual Network Enablers (MVNEs) which are specializing in supporting the network-operator-side for the MVNOs. MVNEs facilitate the services of MVNOs by providing them mission-critical support/services e.g. co-location, IT operations, maintenance, SLA management, disaster recovery, 24x7 help desk, etc. MVNEs play important role for the prompt roll out of MVNO services and ensure its quality. On the other hand, as the number of MVNO players increase, so do the risks involved.

As estimated by analysts, it takes on average, USD 25 million to USD 50 million and almost two years to launch a MVNO¹. In some countries, MNOs have diversified into the MVNE service business which is getting popular day-by-day.

Inter-connectivity & relationship between MNOs & MVNOs are the keys of success in MVNO business. An MVNO type could be defined according to the elements it controls in the mobile services’ value chain. A possible business engagement model according to the ownership of the mobile services’ value chain is described below:

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