MVNO Case

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Mobile Virtual Network Operator

Presented by:Syndicate 4

Unmesh Chitnis 08020541012Disha Seth 08020541015

Mohit Malik 08020541028Samruddhi Dadhe 08020541046

Vaibhav Misra 08020541053



MVNO Dynamics

MVNO:It is a mobile operator that does not have any spectrum or other telecom infrastructure. It purchases airtime from existing player and resells them to customers.

MVNO Ecosystem

HNO: Owns spectrum &telecom infrastructureMVNE: Provide services like Billing, Provisioning.MVNC & SI: Trusted advisor to MVNO

•Strategy and Planning •Business Case and Operational Models •System Integration and end-to-end testing

HNO

MVNE

MVNO

MVNC&SI



MVNO models



1) Reseller A reseller offers products and services of its operator partner (HNO) The model suits businesses that have an existing brand and retail infrastructure in place Main focus is on branding, distribution, and sales. Model is simple to implement and market entry is easy

2) Service Operator Offer innovative pricing and its own service packages Objective is to differentiate its services Takes care of billing, and CRM Unlike resellers, they can compete with HNO in price

3) Full MVNO A full MVNO has full control of its service offerings Maintains its own core network Effectively operates as a HNO but without its own radio network Has its own SIM cards, IMSI codes, numbering systems, interconnection rights, and

responsibilities 4



Key environmental Factors HNO’s are open to MVNOs Competitive market Low penetration and Under served segments Friendly Regulatory regime Number Portability

Critical success factors Know the customer Strong brand Up sell, cross sell, bundle



Global Trend Analysis

Regulatory

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Regulatory Position Examples Relevant Regulations Number of MVNOs

Force MNOs to share network

1) Hong Kong2) Norway

Example network: Hong Kong1)40% network capactiy dedicated to MVNOs2)No limit to number of MVNO licences3)Uniform wholesale pricing regardless of MVNO

1) Hong Kong: 72) Norway: 8

Facilitate launch of MVNOs

1) Australia2) Belgium 3) France 4) Denmark5) UK

Example Market: Australia1)Mandatory sharing of networks enforced on operators with significant market share2)Wholesale pricing on a cost plus basis with regulated margins

1) Australia : 202) Belgium : 153) France : 174) Denmark : 115) UK : 18




RegulatoryRegulatory Position Examples Relevant Regulations Number of MVNOs

Indifferent to MVNOs 1) Austria2) Canada3) Japan 4) Portugal

Example Market: Japan1)No requirement on MNOs to open networks to MVNOs2)MNOs allowed to price discriminate based on its own business objectives

1) Austria : 42) Canada : 53) Japan : 24) Portugal : 2

Discourage development of MVNOs

1) Bolivia 2) Argentina

Example Market: Argentina1) Large number of MNO

licenses granted to make market unattractive for MVNOs

2) Stringent roll out obligations to MNOs make MVNO entry difficult

1) Bolivia : 12) Argentina : 0

Prohibit MVNO 1) Greece 2) Italy

Example Market : Italy1) MNO not allowed to

host MVNO till 2011 as part of 3G license agreements

1) Greece : 02) Italy : 0

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Worldwide Market

8

• Total MVNO market – 3% of Total Mobile Market

• Currently, over 400 active MVNOs operated by over 360 companies

• Western Europe – 40% of the worldwide MVNOs, Netherlands and Belgium represents the highest share

• Hong Kong - highest MVNO penetrated Asian market with 7,20,000 customers, i.e. around 7.5% market penetration

• Govt. of India recently accepted TRAI's proposal for the entry of MVNOs in the domestic market




Various Models

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• DISCOUNT MVNOs – provide cut-price call rates to the market segments. These include Virgin Mobile and Easy Mobile

• LIFESTYLE MVNOs – focus on specific niche market demographics. Like, Boost Mobile in US and ID&T Mobile in Europe

• ADVERTISING-FUNDED MVNOs - like Blyk or MOSH Mobile build revenues from advertising to give a set amount of free voice, text and content to their subscribers.

• ETHNIC MVNOs - like Lebara target ethnic communities by providing inexpensive calls to their home country.



Impact of MVNO

The impact may be categorized under the following parameters:

• Penetration of mobile communication in emerging markets • Changes in policy regulations• Increase in Usage• Increase in competition giving rise to innovation• MVNO in 3G• Data only MVNOs

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MVNO in India

• VIRGIN – TTSL “Think Hatke”• On 6th Aug 2008, TRAI released recommendation on introduction of MVNO in Indian Telecom Market• Key recommendations1.MVNO free to choose its business model2.No limit on number of MVNOs attached to an MNO3.MNO to pay the spectrum charges for utilisation of spectrum by MVNO4.Entry fees for MVNOs – 10% of MNOs subject to a maximum of Rs. 5 crore for Metro/ Category A, Rs. 3 crore for Category B and Rs. 1 crore for Category C service areas5.Annual license fees same as that of MNO of the service area6.No Roll out Obligations for MVNO7.FDI limit 74% (same as MNO)

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MVNO in India

• Challenges1. MNP implementation2. Reducing Tariffs, Shrinking ARPU and low profit margins3. Price sensitive customer4. Financial Viability5. Policies

12





Architecture : Today



Architecture : Tomorrow



What’s Different from MNO?



What’s Different from MNO?



How to go about ?

ResponsibilityAccountabilityConsultationInformation



MVNO-MVNE Contours:



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Enterprise IT « in real life »

• Many systems• Many data

sources• Many different

data models• Different

references• Duplicates

Problems in data consolidation



Topsy-Turvydom :Who’s the savior?

MVNE!!!!



A Real case to address:-

What ?Why?How?



Service portfolio & Operations capabilities

CustomerAcquisition &Order Entry

Provisioning (activations, portability)

BillingCustomer

Care& CRM

Value added servicesSIM cards

Order-entry tool

web enabled for end-users,

distributors

Order-entry tool

web enabled for end-users,

distributors

Prov. & workflow

MNO, service platforms, billing

system

Prov. & workflow

MNO, service platforms, billing

system

CRM system

web enabled for call-centre & self

care

CRM system

web enabled for call-centre & self

care

Prepaid reload m

anagement

Prepaid reload m

anagement

Prepaid engineIN

basedPrepaid engine

IN based

Post-perso process for

small batches

Post-perso process for

small batches

SIM profile definition for large batches

SIM mngt & OTA server

SIM profile definition for large batches

SIM mngt & OTA server

SIM appletsCustomisation &

branding, call mngt, security

Switch & Service node

UMS, follow-me, call termination, SMS-

GW

WISPAPN for user

authentication & mobile portal mngt + WAP gtway + MMS +

remote handset configuration

SIM appletsCustomisation &

branding, call mngt, security

Switch & Service node

UMS, follow-me, call termination, SMS-

GW

WISPAPN for user

authentication & mobile portal mngt + WAP gtway + MMS +

remote handset configuration

HLR / GMSC(roadmap)

HLR / GMSC(roadmap)

Marketing / Business / Regulatory support(offer definition, economic modelling, business processes, regulatory requirements)

Marketing / Business / Regulatory support(offer definition, economic modelling, business processes, regulatory requirements)

Logistics(3rd party)Logistics(3rd party)

Call centre(3rd party)

Call centre(3rd party)

Post-paid, invoicing, balance m

anagement

Post-paid, invoicing, balance m

anagement

Payment Collection

Revenue AssurancePaym

ent CollectionRevenue Assurance

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MVNOmass market

Vision of a possible efficient market structure

MNO

MVNOmass market

MVNOniche

MVNOniche

MVNOniche

MVNOniche

MVNOniche

Mass market MVNOs Segmented / niche MVNOs

Ethnic Sports SME Switchless resellers

MVNA (Aggregator)MVNA (Aggregator)

M2MMedia Distributor Fixed telco

MVNEMVNE

MVNEMVNE MVNEMVNE MVNOniche

MVNOniche

MVNOniche

MVNOniche

MVNOniche

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EasyBorder : Transatel offer for frequent travellers & cross- border population (FR, BE, NL, LU)

• Dedicated offer for high roamers– 30% to 100% price reduction on roaming– Better continuity & dedicated services

• Commercialised in FR, BE, NL, LUX

• Niche marketing– Direct marketing– Flyers & billboards in int’l train stations– Advertising in targeted newspapers & websites– Active referral program– Partnership with frequent traveller programs

• Sales: telesales & web

www.transatel.comwww.transatel.com

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Transatel international reach

Roam Triple Wireless

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Billing

Customer

Managem

ent

IT systems to support CRM & billing

Provisioning

CRM(sales & mkt)O

rder-entry /Custom

er service

Real-time rating

IN call-control

CDR mediation

Prepaid top-up mngmt

Post-paid mngmt & invoicing

WWW

IVR

SMS

PDF email

WWW

print-shop

Bank interfaceReporting &

data w/h

CustomersDistributors

MVNO back-office

IT interface

INAP / CAMEL

CDR files from 3rd parties

GSM GSM networknetwork

Other P/F &

system

sM

NO

interface

IN P/FService P/F

3rd parties, etc.

WebFront End(O/E & C/S)

API

Account Status

&Networkfeatures

Account Status

&Networkfeatures

TroubleticketingTroubleticketing

Subscribers&

Catalogue

Subscribers&

Catalogue

Resources(SIM &

MSISDN)

Resources(SIM &

MSISDN)

Accounting reports26



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How the Problems arise?Reporting needs are …

• Repetitive– Finances and marketing will share lots of requirements, but expressed

differently• Subtly different

– Finances would like a report starting on Jan, 1st. – Marketing would like the same report, starting on Dec, 10th (Christmas

offer…)• Complex

– Marketing would like to know the revenues generated by an offer (billing data), but with differentiation of the different acquisition channels (CRM data)

• Expressed by business users– Business vocabulary : they won’t use the name of table and columns !– They don’t care about the naming conventions in data-models– They don’t care about technical constraints



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First approach

• Custom SQL queries• Queries against the different databases of the different applications• Use Excel sheets (with embedded queries) to federate data, and produce charts• Use existing applications to deduce stats (from displayed grids in a search screen

for instance…)



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Enterprise IT « in real life »



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Complexity• Queries are complex

– Samples :• mvno_activation_monitoring.sql• mvno_dump_accounts.sql• mvno_financial_report.sql• process_monitoring.sql

• This kind of queries :– Use many tables, sometimes from several databases, sometimes from

several systems– Needs many indexes– Produce large result sets– Are long to execute



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Volumes

• 1 MVNO = 10,000 to 100,000 subscribers• Around 200 CDRs (call data records) per subscriber per month

(Up to 800 CDRs per month for some specific offers with a lot of data traffic)• 100,000 subs * 200 CDRs * 12 months = 240 M CDRs / year• 800 bytes of storage per CDR (including indexes) =~ 190 GB of storage per

MVNO per year• doing a SELECT query over the whole data of the year (for instance,

sum of all traffic) would require a lot of time of execution, and a lot of resources (disk, CPU) on production server

• 1 MVNO = 5 tariff-plans = 10,000 rates implemented in billing

• Call destination analysis tables (numbering plans) = 600,000 destinations in the world



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No reactivity to change

• One report = one query catastrophic !!

• Each set of reports evolution needs a project organization :– specification by business, – technical specification (complexity to interpret business requirements)– testing, – move to production

• Even for minor changes !!



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OLTP models are not adapted

• OLTP- Online transaction processing is the common modeling for business applications– transaction-oriented– data is highly normalized (cf. 3 normal forms)

• OLTP models are not designed for large queries– Performance impact, database locking

• OLTP models are not designed to maintain history– Often, OLTP systems store a snapshot of reality. For instance, they store the current

status of some entity, but not all the history of statuses for that entity and the dates of each change.

– Keeping all activity for a long time in OLTP systems would have an important impact :• Difficult to administrate indexes• Performance impact• Time to backup & restore database (because systems fail one day or another)

• OLTP models are not adapted to reporting– Data normalization decompose data into many tables and joins, resulting in complex

queries



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The result :

• 90% of time spent in developing and producing the reports, 10% spent to analyze them

• Use of user-interfaces not designed for reporting• Too few people know how to produce the key reports• Performance impact on production systems• Reports are incomplete, no sufficient history

• “I have data everywhere, and sometimes I forgot some data-source in my reports”

• “I get data from many different systems to fill-in my Excel sheet”• “I’m not totally confident in my reports”• “I make a lot of hypotheses in my simulation, but I cannot verify them”



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All these problems = the field of BI

• Difficulties in data acquisition– Need dedicated tools to collect data from different systems, with cleaning

and consolidation capabilities• Difficulties in data storage with OLTP on production systems

– Need different data-models to store history– Need different databases to store history– Need different engine to do the analysis and calculations

• Difficulties in data restitution with SQL– Need tools usable by business users

• BI = Business Intelligence = Field of technologies that facilitate acquisition, analysis and restitution of data to help in taking decisions





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Project organization



37

What users want



38

What they specify

• “Put all information you have, we will select things afterwards”



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What you’ll manage to do



Then How to run Square wheeled Car?



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Select requirements and organize phases

• Talk with business users, again, again and again !• Organize requirements in a matrix of choice :

• Eliminate complex and non-urgent needs, and organize project phases

com

ple

xit

y

business priority

P1

P2

P3



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Define granularity of dataA radar diagram can help you to :

• Identify the needed dimensions and their hierarchies

• Decide the level of granularity you need to keep in your datamarts

Called region

Called number type

Roaming network

Time of callCustomer group

Offer group

Call type

SMS, Voice, GPRS

Full detail City

Country

Zone

No detail

OperatorCountry

ZoneSeconds

Minutes

Hour

Day

Customer

MVNO

Offer

Offer group

Full detail

2005 data

2006 data



Learnings from experience…• Dimension design : beware of cardinality !• Example : Time dimension• First design : one table for all granularities, from year to second• 365*24*3600 = up to 31’536’000 rows by year !!!• This design was catastrophic on performance of everything : loading, pre-

processing, querying, custom calculations (advanced MDX)

In fact, bad analysis of business need– Day granularity was enough for most of time dimension usage (date of bill-

cycle, date of call, date of subscriber creation, etc.) = 365 rows per year– Second granularity was useful in a unique case : time of call placement, only

86400 rows and rarely used. 2 different time dimensions : a “Date” dimension (used a lot), and a “Time”

dimension (used once in the model) Result : Pre-processing time improved by a factor of 20…

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Some vendors of BI software…• ETL

– Informatica– IBM– SAS– Cognos– DataMirror– Microsoft SSIS– Sunopsis – Business Objects– Oracle– Open Source : Talend, Enhydra

• Storage– Generalists : Oracle, Microsoft SQL Server– Specialized :

• Red brick• Teradata• Sybase IQ• SAS• Netazza• Datallegro

– Open Source : MySQL

• OLAP– Microsoft Analysis Services– Hyperion– Oracle– SAP BW (dedicated to SAP solutions)– SAS

• Reporting– Business Object / Crystal Report– Cognos– Hummingbird– Hyperion Solutions– Microsoft reporting services– Information Builders– Oracle– SAS– Informatica– MicroStrategy– Actuate– Open Source : JasperReports, Pentaho



Thank You

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MVNO Case

Documents

mvno dynamics mvno

mvno models

impact of mvno

mvnos mnos

mvno strategy

innovation mvno

introduction of mvno

entry of mvnos