Operators form country’s first MVNO club
FOUR GROUPS of mobile virtual network operators yesterday joined together to form the Thailand MVNO Club in order to share the cost of operation systems and create more competition.
The four operators are i-mobile Plus Co of Samart I-Mobile, Data CDMA Communication Co, 168 Communication, and The WhiteSpace Co. All are part of CAT Telecom’s MVNO network providing third-generation cellular service on the 850-megahertz spectrum.
It is the first time small and medium-sized telecom operators have formed an alliance.
“The alliance will save costs starting from 5-30 per cent for each company depending on the different companies’ expenses,” said Chaiyod Chirabowornkul, chief executive officer of The WhiteSpace Co and secretary of the Thailand MVNO Club.
Chaiyod said the emergence of MVNO services – those that provide wireless-telecom services for other companies but do have networks of their own – brought many new players into the telecom market and provided new alternatives for niche services for consumers.
He said the model encouraged the creation of new services and special promotions that excited the market and helped drive other related industries.
It is expected that the total number of mobile subscribers using MVNO services will be around 2 million by end of this year.
Watchai Vilailuck, president of Samart Corporation and chairman of the MVNO Club, said the |emergence of MVNOs supported the National Broadcasting and Telecommunications Commission’s telecom-infrastructure sharing |policy while avoiding redundant investments and optimising existing telecom resources including back offices for SIM card management, purchasing, and information-technology systems.
Watchai said Samart was the first company to start an MVNO business. The alliance would provide the MVNO business operation more strength.
The club wants more MVNOs to become members. Currently there are 39 MVNO companies with licences from the NBTC but only around 10 are active.
Nipon Chuchid, president of Data CDMA Communication, the provider of the MYWorld3G brand, said each MVNO had its own niche market. MYWorld3G is targeting GPS (Global Positioning System) truck services and wireless payments. The company forecasts gaining around a million subscribers by the end of this year.
Surapan Meknavin, director of CAT Telecom, said the state agency planned to upgrade its 3G-850MHz service to 4G soon to serve high demand for data communications. Currently CAT’s network has the capacity to serve 4 million MVNO users.
An MVNO enters a business agreement with a mobile network operator to obtain bulk access to network services at wholesale rates, then sets retail prices independently.
MVNO is a viable model for the current mature telecom market in Thailand, with a penetration rate of 145 per cent.
The cost of investing in the telecom industry is excessively high, especially the expense of spectrum bandwidth and infrastructure development. But the MVNO model requires a much lower investment, allowing operators to offer good-quality services at reasonable prices.
The model also has the capacity to access untapped consumer segments, especially in rural areas, and explore opportunities to develop new services. Ultimately, consumers benefit from more diverse service choices and more service providers, and are able to select a service plan from the most preferred provider that best suits their needs and budget.
