Mobile virtual network operator

As Mobilfunkdiscounter or mobile discounter is referred to in the mobile environment such telecommunications services providers that offer comparatively cheap calling minutes without equipment subsidies and thereby not have their own mobile network, but as a service provider on the network infrastructure of the major mobile provider ( MNO Mobile Network Operator ) by roaming agreements fall back.

Definition

In the early days of mobile resellers outweighed the technical definition of an MVNO ( Mobile Virtual Network Operator, for example, according to an Ovum study from the year 2000): a company that has its own GSM infrastructure such as a Mobile Switching Center ( MSC) and possibly also a core network features, ie on all infrastructure facilities of a mobile network operator or mobile network operator ( MNO) with the exception of the radio network ( the so-called air interface). By this definition, there would be but few MVNOs worldwide.

As an alternative to the construction of a true MVNO shall use the services of an MVNE ( Mobile Virtual Network Enabler ), the ( at least partly ) invested in infrastructure and actually offer this third company to use, without obligation to invest themselves.

Meanwhile, a definition has prevailed after the market approach, according to which there are two types of MVNO. The lifestyle retailer that focuses on specific target and customer groups (eg Viva ), and the discount provider that offers the best possible rates with little effort (eg Aldi). In Germany, especially the discount providers have prevailed.

The investment in building their own Home Location Register (HLR ), which would bring more flexibility in the selection of guest networks and roaming partners, has been avoided by most -present in the market providers, which is why the MVNO definition has now been extended to mobile network provider. However, those retailers are not yet met the definition of a discounter because classical fixed-term contract business with equipment subsidies and various special service benefits ( added value ) was operated. Known Non -Discount MVNO in Germany are Mobilcom Debitel, which emerged from the merger of Alphatel, Telco and VictorVoX Drillisch Telcom GmbH or is no longer on the market acting Quam.

History

First MVNO in 1999, the British provider Virgin Mobile, which is active today in Canada, Australia and the U.S., and has over five million customers. The great success of this agent was followed by numerous other companies. Worldwide, there are about 200 MVNO in 2006. In countries like the UK, Denmark, Finland, Australia, the USA and the Netherlands, there are already numerous MVNO. In Austria and France began in 2005, the first provider with an offer.

The best-known German MVNO was from late 2001 until the end of 2002 Quam, who wanted access to the establishment of its own network to the network of E-Plus.

Through a cooperation of O2 with Tchibo the market experienced an unprecedented boom in Germany in 2004, who found a successful imitators with Aldi in 2005. After the sales launch of many mobile discounter end of 2005 predominate among the MVNO discounters Although numerically as a provider, although the beginning of 2006 is to be assumed on the basis of the press releases of the providers that perform the classic non- discount providers in terms of customer numbers. In the mobile discounters are mostly to lean startups (often subsidiaries of well-known companies ) whose core competence is outside the mobile industry, which therefore mainly act on the market side ( with their own tariff structures) want and reduce their technical complexity to a minimum and must.

Business Model

In contrast to the traditional mobile network operators of the distribution does not have specialized stores or electronics markets, but through supermarkets or by direct sales via the Internet and telephone takes place. The fee structure is deliberately kept simple ( "No frills " ), the company put on round- the - clock - a - price fares. There is only a single, low price per minute to landlines and all mobile networks at any time. After initially less frequently used and compared by consumers of services such as roaming, calls were generally abroad and data services unavailable or much more expensive than other rates, meantime, there are discount stores that offer these services to uniform, very cheap compared to the market rates. Partial drove the non- provision of additional features strange flowers: For the German discounters of the E-Plus network, it was not until the spring of 2007 possible to disable the mailbox.

A basic charge is not applicable, a minimum turnover does not apply, and a minimum contract period is not specified. There are some providers for the low usage fees or special termination rights with little turnover. In addition, no subsidies for the purchase of a new mobile phone will be charged, which is why the customer needs a SIM - lock- free mobile phone. Some vendors have already been received for this purpose cooperation with electronics markets or mail order and provide appropriate SIM -lock free mobile phones on this.

In most post-paid offers, the accounting is done only electronically charged. The postal delivery a printed invoice will be offered as an option at extra cost.

Background

The range of mobile phones is constantly growing and lucrative market. Since there but only a few companies out there that have their own networks, the search for new business models, which also makes other companies to participate in the market. Given the already high market saturation reached the end of 2004 growth rates are mainly achieved by cut-throat competition. About favorable tariff models, however, the revenues would be harmed in the existing customer base, which explains the establishment of the no-frills brands as 100 - percent -owned subsidiaries of existing operators.

Another potential growth resulting in the development previously not available customer circles. With completely bought in resale products to leverage their existing customer relationships successful brand leaders to address hitherto not mobile telephoning customers. Similar to call-by -call telephony providers and Internet access providers now exist ready-made solution that reduce the complexity and cost for the provision of a new mobile brand to a minimum. The to be overcome market entry resistance consists in the market positioning and marketing of the product and no longer in the technical processing (network operations, logistics, billing ), as this from the actual network operator ( or an intermediary mobile provider) as inputs into the name of the provider is provided.

The discount providers contact their tariffs as middlemen to buy at the network owners call minutes and then give it to their own customers - of course with a small markup. Mobile discounter are nothing more than middlemen. They are therefore also known as Mobile Virtual Network Operators (MVNO ) called, ie mobile virtual network operator.

Analysts say the segment of mobile discounter ahead of major growth opportunities. In countries such as Denmark and Sweden in 2005 calls already up to 20 percent of mobile phone owners at discount prices.

Situation in Germany

Since 2004, more and more mobile discounters entering the German market. They are usually set up by large mobile phone company subsidiaries that also use their mobile networks or OEM / Branding products (eg ALDI TALK ), who use the name and / or distribution channels already established brands in order to specifically address their customer base.

The competition among the mobile discounters has led to a steady decline in prices in this market segment: Since the launch of Tchibo Mobile in October 2004, the uniform price per minute cent fell in all mobile networks from 35 cents on 19 cents at Data protection in May 2005 and 17.9 in blau.de in September 2005, finally, first to 16 cents on easy mobile (now callmobile ) in November 2005. entering the market of AldiTalk in December 2005 at 15 cents consolidating found a temporary resting point and many vendors were based on this price per minute. In September 2007 was ushered back with the launch of Fonic a minute price of 9.9 cents to all mobile networks, a new round of price, which in turn assimilated into a number of competitors. In early 2008 lowered Fonic, blau.de, Data protection and congstar their per-minute rates further to 9.0 cents. Since May 2008 maXXim offers a prepaid product with 8 cents per call minute. According to a further reduction in termination charges, which took place on 1 December 2010, could be expected with a new reduction of call charges.

Provider

  • List of Mobile discounter in Germany
  • List of Mobile discounter in Austria
  • Swiss mobile market # Service Provider
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