Friday, May 19, 2006

MVNO in India (Fully possible?) - Just a thought

The MVNO business model has gained in popularity over the past few years. Across the world, companies are using the MVNO model as a Trojan horse to penetrate the lucrative mobile sector. In Europe alone, the number of MVNOs and service providers has leaped from about 40 to more than 100. Meanwhile, emerging markets have remained relatively immune to the MVNO hoopla. Countries like India, Brazil, Russia – each in their own unique way offer tremendous opportunities to potential MVNOs.

Key Issues to ponder over:

- Can the MVNO model work in emerging markets?

- What are the key criteria of success for an emerging market MVNO?

- Should an emerging market MVNO compete on price?

- Can an MVNO survive in a low-ARPU market?

- Given income distribution levels and the importance of the high-end consumer base and the business market for existing operators, how effective would strong segmentation be?

- Are MVNOs good-or bad for emerging markets network operators? Should existing operators open up their networks?

- Is there room for an MVNO in the extremely competitive Indian market?

If we ignore the economics of the whole thing, then what kind of a MVNO would we like to see in India? I am sure an MVNO for the movie lovers would be extremely popular! Just a possible talk with your fav movie start be it Sharukh or Aish, should be enough incentive to keep a whole lot of people, hooked to a particular mobile connection!

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