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On the Economics of 3G Mobile Virtual Network Operators (MVNOs)

Authors:

Th. Sphicopoulos,

I. WellingAuthors Info & Claims

Wireless Personal Communications: An International Journal, Volume 36, Issue 2

Pages 129 - 142

https://doi.org/10.1007/s11277-006-0027-5

Published: 01 January 2006 Publication History

Abstract

The paper assesses the market conditions and dynamics, the architectures and the different approaches for deployment of 3G Mobile Virtual Network Operators (MVNOs), in an attempt to address specific advantages and pitfalls. Following the definition of appropriate service sets and tariff structures, and taking into account demand scenarios, a techno-economic model has been developed, in order to compute key economic indicators. The paper presents techno-economic results of specific business cases and deployment alternatives for an average "large" European country and a smaller, Nordic-type country. Fixed and variable costs have been identified and the business case shows how different service sets lead to different costs. Different MVNO business profiles have been investigated. Profitability for all scenarios and business profiles has been calculated, presented and discussed. Major opportunities and threats, as well as critical parameters and uncertainties have been identified through sensitivity analysis.

References

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1. ITU, "Mobile Virtual Network Operators", ITU News, 2001. Available at http://www.itu.int/itunews/issue/ 2001/08/mvno.html.

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2. IST-TONIC, EU IST, "Techno-economics of IP Optimised Networks and Services", IST-2000-25172. Available at http://www-nrc.nokia.com/tonic/.

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3. Analysys, "3G, MVNOs & Acquisitions: Opportunities for Entering New markets", Available at www.analysys.co.uk.

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4. G. Zibi, Pyramid Research, "MVNOs in Emerging Markets", 2005. Available at www.pyramidresearch.com.

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5. OVUM, "Virtual Mobile Services: Strategies for Fixed and Mobile Operators", Available at www.ovum.com.

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6. OFCOM (ex OFTEL), "Statement on Mobile Virtual Network Operators", September 1999. Available at http://www.oftel.gov.uk/competition/mvno1099.htm.

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7. F. Daoud and S. Mohan, "Strategies for Provisioning and Operating VHE Services in Multi-Access Networks", IEEE Commun. Mag., Vol. 40, p. 78, 2002.

Digital Library

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8. OFTA, "Open Network: Regulatory Framework for Third Generation Public Mobile Radio Services in Hong Kong", Discussion Paper, January 2001.

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9. D.M. Leive, ITU, "Interconnection: Regulatory Issues", 4th Regulatory Colloquium, Geneva, 19-21 April 1995, Available at http://www7.itu.int/treg/RelatedLinks/LinksAndDocs/interconnect.asp.

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10. W.H. Melody, Telecom Reform: Principles, Policies and Regulatory Practices. Technical University of Denmark, 1997.

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11. OECD, "Cellular Mobile Pricing Structures and Trends", DSTI/ICCP/TISP(99)11/FINAL, May 2000. Available at http://www.oecd.org/dsti/sti/it/index.htm.

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12. Analysys, "Economic Studies on the Regulation of the Mobile Industry: Final Report for ECTA", February 2000. Available at www.analysys.co.uk.

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13. V. Clark, Total Telecom, "Business & Regulatory: ECTA Pressures Regulators on Fixed-Mobile Access Charges", Available at http://www.totaltele.com/view.asp?ArticleID=26961&Pub=tt

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14. T. Monath, et al., "Economics of Fixed Broadband Access Network Strategies", IEEE Commun. Mag., Vol. 41, pp. 132-139, 2003.

Digital Library

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15. D. Varoutas, et al., "Business Opportunities Through UMTS-WLAN Networks", Ann. Telecommun., Vol. 58, pp. 553-575, 2003.

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16. D. Katsianis, et al., "The Financial Perspective of the Mobile Networks in Europe", IEEE Pers. Commun., Vol. 8, pp. 58-64, 2001.

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17. L. Ims, Broadband Access Networks Introduction Strategies and Techno-economics Evaluation. Chapman & Hall, 1998.

Cited By

Chaudhary VRawat D(2020)Mobility Data-Driven Wireless Network Virtualization for Mobile Cyber Physical SystemGLOBECOM 2020 - 2020 IEEE Global Communications Conference10.1109/GLOBECOM42002.2020.9322526(1-6)Online publication date: 7-Dec-2020
https://dl.acm.org/doi/10.1109/GLOBECOM42002.2020.9322526
Ekanoye FOlokunde TMbarika VMusa P(2018)An Exploration of Relationships Between Mobile Network Operators MNO and Mobile Virtual Network Operations MVNO in NigeriaInternational Journal of Interdisciplinary Telecommunications and Networking10.4018/IJITN.201804010110:2(1-13)Online publication date: 1-Apr-2018
https://dl.acm.org/doi/10.4018/IJITN.2018040101
Wang YGu BLiu SLiu PZhong XWang H(2015)Stackelberg game modeling of pricing for mobile virtual network operatorsProceedings of the 8th International Conference on Mobile Multimedia Communications10.5555/2826112.2826133(105-109)Online publication date: 25-May-2015
https://dl.acm.org/doi/10.5555/2826112.2826133
Show More Cited By

Index Terms

On the Economics of 3G Mobile Virtual Network Operators (MVNOs)
1. Networks
  1. Network services
    1. Network management
  2. Network types
    1. Mobile networks
    2. Wireless access networks
2. Social and professional topics
  1. Professional topics
    1. Management of computing and information systems
      1. Information system economics

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Information & Contributors

Information

Published In

cover image Wireless Personal Communications: An International Journal

Wireless Personal Communications: An International Journal Volume 36, Issue 2

January 2006

100 pages

ISSN:0929-6212

Issue’s Table of Contents

Copyright © Copyright © 2006 Springer Science + Business Media, Inc.

Publisher

Kluwer Academic Publishers

United States

Publication History

Published: 01 January 2006

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Cited By

Chaudhary VRawat D(2020)Mobility Data-Driven Wireless Network Virtualization for Mobile Cyber Physical SystemGLOBECOM 2020 - 2020 IEEE Global Communications Conference10.1109/GLOBECOM42002.2020.9322526(1-6)Online publication date: 7-Dec-2020
https://dl.acm.org/doi/10.1109/GLOBECOM42002.2020.9322526
Ekanoye FOlokunde TMbarika VMusa P(2018)An Exploration of Relationships Between Mobile Network Operators MNO and Mobile Virtual Network Operations MVNO in NigeriaInternational Journal of Interdisciplinary Telecommunications and Networking10.4018/IJITN.201804010110:2(1-13)Online publication date: 1-Apr-2018
https://dl.acm.org/doi/10.4018/IJITN.2018040101
Wang YGu BLiu SLiu PZhong XWang H(2015)Stackelberg game modeling of pricing for mobile virtual network operatorsProceedings of the 8th International Conference on Mobile Multimedia Communications10.5555/2826112.2826133(105-109)Online publication date: 25-May-2015
https://dl.acm.org/doi/10.5555/2826112.2826133
de Carvalho PGupta AKar K(2013)Hierarchical spectrum market and the design of contracts for mobile providersACM SIGMOBILE Mobile Computing and Communications Review10.1145/2557968.255797617:4(60-71)Online publication date: 16-Dec-2013
https://dl.acm.org/doi/10.1145/2557968.2557976
Katsigiannis MSmura TCasey TSorri A(2013)Techno-economic modeling of value network configurations for public wireless local area accessNetnomics10.1007/s11066-013-9077-514:1-2(27-46)Online publication date: 1-Nov-2013
https://dl.acm.org/doi/10.1007/s11066-013-9077-5
Kokku RMahindra RZhang HRangarajan S(2012)NVSIEEE/ACM Transactions on Networking10.1109/TNET.2011.217906320:5(1333-1346)Online publication date: 1-Oct-2012
https://dl.acm.org/doi/10.1109/TNET.2011.2179063
Kokku RMahindra RZhang HRangarajan SVaidya NBanerjee SKatabi D(2010)NVSProceedings of the sixteenth annual international conference on Mobile computing and networking10.1145/1859995.1860023(233-244)Online publication date: 20-Sep-2010
https://dl.acm.org/doi/10.1145/1859995.1860023
Falaki H(2007)The Wi-Fi roaming gameProceedings of the 3rd international conference on Internet and network economics10.5555/1781894.1781950(412-418)Online publication date: 12-Dec-2007
https://dl.acm.org/doi/10.5555/1781894.1781950
Cricelli LGrimaldi MLevialdi N(2007)A model for the interconnection and the competition among hosting and virtual network operatorsProceedings of the IASTED Asian Conference on Modelling and Simulation10.5555/1650116.1650151(174-179)Online publication date: 30-Oct-2007
https://dl.acm.org/doi/10.5555/1650116.1650151
Smura TKiiski AHämmäinen H(2007)Virtual operators in the mobile industryNetnomics10.1007/s11066-008-9012-38:1-2(25-48)Online publication date: 1-Oct-2007
https://dl.acm.org/doi/10.1007/s11066-008-9012-3

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