Securing the optimum network deal is fundamental to the success of the business but so too is managing customer acquisition costs and minimising fixed costs Select the right network partner Negotiate the optimum wholesale agreement Select the right vendor strategy The success of the MVNO launch and the long term health of the business depend critically on making the right choice of suppliers for equipment, systems and services MVNO as a Market Entry Option in India Greenfield Acquisition MVNO Availing license is Most of the players The process for Ease of Availing expected to be possess 2G licenses. getting requisite License challenging However, getting licenses is less a 3G license is challenging for difficult MVNOs Speed of Service Services can be Existing operations With ready rolled out of acquired operations, services Rollout through green - field company can be can be rolled out rollout or leveraged quickly tower - sharing agreements Investment Level Greenfield rollout Acquisition would Targeted rollouts would involve involve high depending on high CAPEX/OPEX to investments as the investment level set up candidates are can be network and currently priced at a carried out distribution premium The high level of Acquisition target Risk is limited by the Risk investment can be possibility required, rollout overpriced of scaling up obligations and operations as per exit barriers would requirement be a source of risk Control Over Overseas entrants Overseas entrants Overseas entrants can fully can fully can fully leverage Operations leverage their brand leverage their brand their brand, however and and network operational expertise operational expertise control is limited by operator Overall Low Medium High
Securing the optimum network deal is fundamental to the success of the business but so too is managing customer acquisition costs and minimising fixed costs Select the right network partner Negotiate the optimum wholesale agreement Select the right vendor strategy The success of the MVNO launch and the long term health of the business depend critically on making the right choice of suppliers for equipment, systems and services MVNO as a Market Entry Option in India Greenfield Acquisition MVNO Ease of Availing License Availing license is expected to be challenging Most of the players possess 2G licenses. However, getting a 3G license is difficult The process for getting requisite licenses is less challenging for MVNOs Speed of Service Rollout Services can be rolled out through green - field rollout or tower - sharing agreements Existing operations of acquired company can be leveraged With ready operations, services can be rolled out quickly Investment Level Greenfield rollout would involve high CAPEX/OPEX to set up network and distribution Acquisition would involve high investments as candidates are currently priced at a premium Targeted rollouts depending on the investment level can be carried out Risk The high level of investment required, rollout obligations and exit barriers would be a source of risk Acquisition target can be overpriced Risk is limited by the possibility of scaling up operations as per requirement Control Over Operations Overseas entrants can fully leverage their brand and operational expertise Overseas entrants can fully leverage their brand and operational expertise Overseas entrants can fully leverage their brand, however network control is limited by operator Overall Low Medium High
45724941-Mobile-Virtual-Network-Operator.docx