The European and US MVNO landscapes have been characterised by very limited regulation on the MVNO market. MVNOs have required little or nothing by way of licencing from regulators.
We are observing in new territories, however, a greater emphasis on regulation and a trend to limits being placed on the number of MVNOs by the requirement of a licence which is often the subject of a bid process analogous to the awarding of spectrum licences.
This regulatory involvement can be positive for the successful winner of an MVNO licence. Margins can be maintained by the absence of new entrants seeking to buy market share with unrealistic and unsustainable pricing.
In markets where the MVNO numbers are limited by the regulator the award of licences is generally based on an assessment, by the regulator, of the business plan of the MVNO. The likeliness of ongoing viability of the licence winner is clearly a key component in the decision to award a licence to any individual bid.
Hebitel’s experience in the MVNO world can make sure that your licence applications are credible and supported by international experience. Where required we can introduce and negotiate international partners to assist in your bid.