End-to-end support for an MVNO launch

The problem

Following a regulatory review in Cyprus, the largest mobile operator, Cytamobile, was required to publish a reference offer for MVNOs. Until this point, there had not been any MVNOs in the country despite a well-developed mobile market. The regulatory review was sparked by European Union decrees on competition in mobile markets; MVNOs were seen as one way to address this issue.

Cytamobile was required to publish its reference offer within a given timeframe and the regulator announced that it would act as mediator for dispute resolution. This sent a clear message to the market on the commitment to introducing MVNOs. Following the announcement from the regulator, MTN Cyprus was also expected to make a similar offer in order to compete with the incumbent.

Our client, PrimeTel, already operated as an alternate network provider in the market, offering fixed voice, data and television services. In the light of the above developments, PrimeTel expressed an interest in launching an MVNO in the market. Furthermore, given the interest expressed by multiple other parties within the country, including competitors, PrimeTel emphasised the need to be the first MVNO to launch.

The solution

We provided end-to-end support for PrimeTel on their MVNO launch, taking them through market analysis, proposition design and business planning to operational design, procurement, testing and launch support.

We divided our support into seven key steps:

• public consultation response
• market-entry proposition strategy
• business modelling, including scenario analysis
• operational and process design
• equipment procurement
• interconnect, business readiness and equipment vendor acceptance testing
• launch project nanagement office (PMO).

Before any work could begin on the MVNO design, we supported on PrimeTel’s response to the regulator’s public consultation on their proposals, including suggestions for wholesale rates.

Following this, we worked with PrimeTel on-site to understand their existing customer base and capabilities, target segments and costs. This allowed us to develop a series of propositions and build a comprehensive business model with scenarios around the wholesale rates within the reference offer (which had yet to be published).

In parallel, a second team developed the operational design and processes that would be required for the proposed propositions, feeding back on costs and personnel requirements.

Subsequent to the business modelling step, we presented our findings to the Board in order to gain approval for further development. This approval was granted, allowing the equipment procurement process to begin.

Once the reference offer was published, we began a negotiation process with the two operators and regulator in order to achieve the optimum wholesale rates.

Following the equipment procurement, we provided a project manager to run the Launch Programme management office, who contributed key direction in defining the MVNO product set as well as managing the service launch. In addition, a third on-site team devised and managed interconnect, business readiness, and equipment vendor acceptance testing.

The result

PrimeTel Mobile successfully launched in May 2011, as the first MVNO to market in Cyprus. Prior to launch, existing fixed line customers were able to reserve the mobile number that they wished to have, including the option to align it to their fixed-line number.

The initial product offering was a prepaid proposition to both existing fixed line customers and the wider mobile market followed by a postpaid launch. Worldwide roaming services were available at launch.

The team

This assignment required a diverse range of skill sets, leveraging multiple teams within Analysys Mason. Over the course of the project, the total team consisted of more than ten members of Analysys Mason involved in on-site visits, with support from a much larger pool throughout the business.

Analysys Mason has completed over 40 MVNO assignments across the globe. Our team of experts cover the complete MVNO value chain including MVNO strategy development, including market analysis and segmentation, proposition design and product marketing, business plan modelling, MVNO/MVNE platform procurement, network audit and service testing, and MVNO regulatory framework development and advice.