Virtual operators in the mobile industry: a techno-economic analysis

Abstract

Virtual operator, Mobile, MVNO, Techno-economic modeling,

Mobile services with handset bundling and governmental policies for competitive market

“…As reflected in the increasing adoption of MVNO users occurring in Europe, MVNOs could pursue a horizontal differentiation that targets niche markets among the youth and the aged along with a vertical differentiation that provides consumers with mobile telecommunications combined with other value-added services (Banerjee and Dippon, 2009). Horizontal differentiation is a mobile business strategy by which MVNOs offer a basic service (e.g., call and text messaging services) inexpensively to price-sensitive consumers (Copeland and Crespi, 2011;Smura et al, 2007). Vertical differentiation is a strategy of synergy effects by which a new telecommunications firm combines its own business capabilities with a mobile service to sell value-added mobile services (Banerjee and Dippon, 2009;Copeland and Crespi, 2011;Corrocher and Lasio, 2013).…”

Analyzing and Categorization of the Business Model of Virtual Operators

“…That inquires low infrastructure investments and trade-offs to concentrate on most cost-effective services [30]. Therefore cost leader can only offer a narrow product portfolio with concentration on basic services [15]. These so called discount or "no-frills" MVNOs usually do not offer mobile phones, special VAS or any cost intensive service to their customers.…”

“…However, the spotlight of many authors like [11], [12], and [13] lies on different aspects of market entry by virtual operators and the impact they have on competition in the mobile market. On the contrary, [14], [15], and [16] made a techno-economic analysis of mobile virtual operators based on the European IST-TONIC project [17] using the TERA tool as basis. Nevertheless, most discussion occurs about the question of network and infrastructure sharing, voluntary strategic partnerships and under which conditions MNOs should open their networks for virtual operators (e.g., [18], [1], [19], and [20]).…”

Pricing for Mobile Virtual Network Operators: The contribution of u-map

“…In particular, the network virtualization [4], a relatively new concept, allows network operators to lease parts of their network. In this context, Mobile Virtual Network Operators (MVNOs) [5] may now find a new vital space to flourish. MVNOs do not own a network but lease access in the wholesale market from a Mobile Network Operator (MNO) and resale access services in the retail market [6].…”