Can MVNOs Succeed in Emerging Markets? With a Bit of Creativity and Planning, 'Yes' Says Pyramid Research.CAMBRIDGE, Mass. -- As developed markets worldwide are seeing increased MVNO (Mobile Virtual Network Operator) A reseller of wireless services. MVNOs do not own licensed spectrum and typically do not have any of their own wireless network infrastructure. competition - more than 40 existing and planned MVNOs are in the US alone - emerging markets are the next window of opportunity. The upcoming report from Pyramid pyramid, structure pyramid. The true pyramid exists only in Egypt, though the term has also been applied to similar structures in other countries. Egyptian pyramids are square in plan and their triangular sides, which directly face the points of the Research, "MVNOs in Emerging Markets," makes the case for MVNOs in developing markets like India, Nigeria and others. Report author Guy Zibi comments, "Emerging market MVNOs must be more cost-efficient than their developed market counterparts; they must also be more cost-efficient than emerging market mobile operators, most of whom are already fairly creative in keeping costs down." To succeed in emerging markets, MVNO models will have to take into account the specificities of each market, and there is limited uniformity in successful models. From the Middle East to South East Asia East Asia A region of Asia coextensive with the Far East. East Asian adj. & n. and Africa, emerging markets are different; Zibi comments "The Middle East, for example, is ripe for a next generation, data-focused MVNO. India and Nigeria, on the other hand, may see more success from cost-driven models." The 'affinity MVNO model' is most optimal for most emerging markets; it extends the reach of the network without fully cannibalizing existing subscriber bases. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the report, the main challenge prospective emerging market MVNOs face is not necessarily low ARPU (Average Revenue Per User) A calculation often used to determine the overall value of an application. It is also used to rate particular customers, especially in the wireless space, by comparing someone's account to the overall average. , but network capacity and the extension of the addressable Reachable. When something is addressable, it can be identified and manipulated independently of its surroundings. For example, screen pixels and RAM memory are addressable. Each of the screen's picture elements can be individually turned on and off, and each of the memory's bytes can be market. Zibi contends that an MVNO can potentially survive on $4-$5 ARPU, but the MVNO model must be re-adjusted to make this possible, largely on the cost side. To accomplish this, MVNOs must find a so-called 'weakest link' incumbent willing to lease capacity as most operators are unlikely to open their networks. About "MVNOs in Emerging Markets" This report examines the prospects for MVNOs in emerging markets by analyzing the current MVNO market craze, the suitability of emerging markets for MVNOs, the best business model and the optimal partners. Our analysis also finds the MVNO 'sweet spots' and 'fool's gold' markets and includes suitability analysis for the Middle East and Mexico, as well as hypothetical Hypothetical is an adjective, meaning of or pertaining to a hypothesis. See:
About Pyramid Research Pyramid Research is the growth strategy expert for the global communications, media and technology industries. For more information on Pyramid Research visit www.pyramidresearch.com. |
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