Reformation opened the door to MVNOs(The telecommunications reform opened the windowof opportunity for the arrival of new players)

The telecommunications reform opened the window of opportunity for the arrival of new players to the industry with innovative offerings such as mobile virtual network operators, according to specialists. 

José Otero, president of Signals Telecom, said that "the benefit of these operators is a greater supply of services for users, and a greater focus on content and data offering." 




A week that Virgin Mobile began operations in Mexico, a new virtual mobile operator announced his arrival from Spain; Tuenti is a subsidiary of Telefónica. 

Tuenti, Spain that started as a social network, began operations on Monday in Mexico, this being the first country in Latin America to have the service; while Virgin announced an investment of $ 41.5 million for the launch and expansion of its operations in Mexico in 2014 and Brazil in 2015. 

Both services are aimed at a young audience and a specific market niche, social networks being a key objective for brand expansion. 

CHALLENGES OF OPERATORS 

Otero said MVNOs face several problems, among which are unable to find network operators willing to sell capacity, it is a business of discounted profit margins. 

MVNOs are mobile service resellers that buy capacity in Mexico Telcel, Nextel, Movistar and Iusacell to market under their own brand. 

Although MVNOs are allowed legally in Mexico, there is no specific legislation defining the role and requirements for such operators. "This business model is not easy to implement."

Following the announcement of the start of operations of Virgin Mobile Mexico, Cecilia Vega, CEO of the company, said "it would be desirable in the future the Federal Telecommunications Institute (IFT) issue a specific regulation for the MVNO, which would streamline having your own numbering operation. "He said that "to succeed, an MVNO must invest in advertising to position their brand, make agreements with distributors and offer an attractive added value for its customers. Competing on price alone is not enough. "

Enrique Yamuni, Megacable director, explained that the expectation is that the reform and pending secondary laws, there should be better able to virtual operators. 

Estimates of Signals Consulting, the deployment of a new wireless network, the establishment of a logistics distribution network charges, customer acquisition, sales points, employee salaries and advertising to a market like Mexico involve an investment of 1,000 million dollars annually if the goal is to try to capture 10% market share in five years.

For Jose Manuel Mercado, industry analyst for exitososlos MVOS should be differentiated services and achieve a cost model that allows them to add new customers at lower than the market average cost.

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