MVNOs hit the road in Latin America - Prepaid MVNO
MVNOs hit the road in Latin America - Prepaid MVNO
MVNOs hit the road in Latin America - Prepaid MVNO
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FEATURE REPORT<br />
Brazil’s outlook<br />
Although <strong><strong>MVNO</strong>s</strong> have existed <strong>in</strong> <strong>the</strong> region<br />
s<strong>in</strong>ce 2008, <strong>the</strong>y have become hot topics<br />
aga<strong>in</strong>, as Brazil regulated <strong><strong>MVNO</strong>s</strong> <strong>in</strong><br />
2010. As Lat<strong>in</strong> <strong>America</strong>’s biggest country<br />
with 255 million mobile subscribers, Brazil<br />
is expected to boost <strong>the</strong> <strong>MVNO</strong> market.<br />
However operations have yet to launch.<br />
The first Brazilian company to announce<br />
plans to enter <strong>the</strong> <strong>MVNO</strong> market, <strong>the</strong> <strong>in</strong>surance<br />
firm Porto Seguro, is set to launch wireless<br />
services dur<strong>in</strong>g <strong>the</strong> second half of 2012,<br />
accord<strong>in</strong>g to general manager Tiago Galli.<br />
The launch process is tak<strong>in</strong>g a long time.<br />
The <strong>in</strong>surance company partnered with mobile<br />
virtual network enabler Datora Telecom<br />
<strong>in</strong> 2010, which also became a shareholder<br />
of <strong>the</strong> new subsidiary, dubbed Porto Seguro<br />
Telecom. TIM Brasil was chosen as <strong>the</strong> network<br />
partner, and management services will<br />
be provided by Ericsson. “It has not started<br />
yet due to <strong>the</strong> licens<strong>in</strong>g process,” Galli expla<strong>in</strong>ed.<br />
Trials began on February 24.<br />
Galli did not disclose <strong>the</strong> amount <strong>in</strong>vested<br />
to launch <strong>the</strong> <strong>MVNO</strong>, but he did note<br />
<strong>the</strong> company will use <strong>the</strong> <strong>in</strong>vestments to<br />
promote customer loyalty and improve<br />
customer service. Porto Seguro already offers<br />
credit cards, with new products such<br />
as location and m-payment also potentially<br />
<strong>in</strong> <strong>the</strong> pipel<strong>in</strong>e. “We aim to be a niche<br />
operator to aggregate value to our current<br />
customers. We won’t fight for costs or to<br />
become a mass operator,” Galli said. In<br />
addition, <strong>the</strong> <strong>MVNO</strong> will help to optimize<br />
<strong>in</strong>ternal costs, for <strong>in</strong>stance, by reduc<strong>in</strong>g<br />
telecommunication expenses.<br />
The delay <strong>in</strong> launch<strong>in</strong>g <strong><strong>MVNO</strong>s</strong> <strong>in</strong> Brazil<br />
is due to <strong>the</strong> bureaucracy around gett<strong>in</strong>g approvals,<br />
accord<strong>in</strong>g to some sources, but <strong>the</strong><br />
country is still very attractive. Companies<br />
that are evaluat<strong>in</strong>g <strong>the</strong> Brazilian market<br />
<strong>in</strong>clude MTV Networks, which has deployed<br />
% of respondents<br />
100<br />
80<br />
60<br />
40<br />
20<br />
0<br />
Strongly agree (18.6% / 17.5%)<br />
Somewhat agree (41.2% / 46.0%)<br />
Note: n=263<br />
Telecom operators<br />
(mobile, fixed, <strong>in</strong>tegrated)<br />
Source: Informa-SAP M2M Communications Survey, 2012<br />
<strong><strong>MVNO</strong>s</strong> <strong>in</strong> six European countries, and<br />
Cemig, a hold<strong>in</strong>g company composed of 58<br />
companies and 10 consortia with assets and<br />
bus<strong>in</strong>esses <strong>in</strong> 19 Brazilian states and Chile.<br />
MTV Networks’ product manager Bas de<br />
Kuiper said <strong>the</strong> company has been <strong>in</strong> <strong>the</strong><br />
mobile bus<strong>in</strong>ess for seven years and has<br />
plans to move forward <strong>in</strong>to Lat<strong>in</strong> <strong>America</strong><br />
and Asia. “MTV has been very active<br />
throughout <strong>the</strong> region, and we are open to<br />
do<strong>in</strong>g bus<strong>in</strong>ess here, though we do not have<br />
any proposals yet,” he said.<br />
Cemig is also eye<strong>in</strong>g <strong>the</strong> <strong>MVNO</strong> bus<strong>in</strong>ess <strong>in</strong><br />
Brazil, though <strong>the</strong>re is noth<strong>in</strong>g concrete yet.<br />
Al<strong>in</strong>e Carvalho, senior lawyer at Cemig Telecom,<br />
said <strong>the</strong> <strong>in</strong>terest <strong>in</strong> launch<strong>in</strong>g an <strong>MVNO</strong><br />
followed an Accenture research report that<br />
showed energy customers would be will<strong>in</strong>g<br />
to pay more for energy if <strong>the</strong>y received additional<br />
services. The company has set up an<br />
All survey<br />
respondents<br />
Somewhat disagree (24.5% / 27.0%)<br />
Strongly disagree (15.7% / 9.5%)<br />
<strong>in</strong>ternal group to study <strong>the</strong> <strong>MVNO</strong> bus<strong>in</strong>ess<br />
with <strong>the</strong> support of consultants. “We aim to<br />
launch, but cannot say when,” Carvalho said.<br />
Cemig has not yet acquired licenses from <strong>the</strong><br />
Brazilian telecom regulator Anatel.<br />
German-based Tyntec is also set to launch<br />
services <strong>in</strong> Brazil. The company is a mobile<br />
<strong>in</strong>teraction specialist that provides solutions<br />
designed to enable enterprises to <strong>in</strong>tegrate<br />
mobile telecom services. Bus<strong>in</strong>ess development<br />
director Sven Dirschauer said Tyntec<br />
is <strong>in</strong> talks with a network partner and a law<br />
firm. It is also wait<strong>in</strong>g for a <strong>MVNO</strong> license.<br />
Dirschauer believes that services could<br />
be launched this year target<strong>in</strong>g Brazilian<br />
enterprises, <strong>in</strong>clud<strong>in</strong>g Internet firms, to<br />
provide messag<strong>in</strong>g services (<strong>in</strong>tegrat<strong>in</strong>g<br />
global <strong>in</strong>bound and outbound messag<strong>in</strong>g<br />
<strong>in</strong>to any application); outgo<strong>in</strong>g, <strong>in</strong>expensive<br />
<strong>in</strong>ternational call<strong>in</strong>g; and services to