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MVNO Global initiative has announced its efforts to consolidate already operating Europe’s virtual mobile operators (MVNO’s) in order to create Pan Europe alternative mobile operator. Consolidation will be performed through creating brand new type of “EU company” - The European Company; "Societas Europaea" or SE and performed by horizontal consolidation merger.
The basic idea behind project is to create “Next generation MVNO” global network with Europe wide coverage, consisting from all GSM/UMTS network elements, except radio access, and centralized service platform, connected by broadband network and binded with each countries incumbents through interconnection agreements. The target market is medium and high-end business and residential users, other MVNO’s and service and content providers willing to start global operations on company’s technical platform.
At first stage of project analysis of EU15 countries mobile markets will be performed in order to identify mobile market alternative key players and select those will be invited to negotiate aspects of fore coming merging process. Throughout second stage all separate networks and service offerings will be upgraded to developed standardized platform. In third stage other countries networks will be developed and connected.
Initiative rationale
The key principle behind initiative to merge existing MVNO’s is to create shareholder value over and above that of the sum of the companies; hence companies together are more valuable than separate companies. This rationale is particularly alluring to existing MVNO’s and SP’s operating in tough mobile markets like Denmark and Finland. The companies should come together to benefit from economies of scale, thus reducing duplicate departments or operations, lowering the costs of the company and increasing profit. The companies in addition benefit from synergy: better use of complementary resources, centralized service platform and value of global brand name.
About “Next generation MVNO” concept
Several leading industry experts identified “Next generation MVNO” concept as evolution of existing first generation MVNO business model, based on completely different approaches: a transition away from price competition toward innovative and higher-value services.
If initially MVNO’s offer simple discounted prepaid voice and SMS services, does not have infrastructure and act as host network resellers under their brand, on opposite next generation MVNO’s is going to have all GSM/UMTS network elements, except radio access, offer sophisticated voice and data services and differentiate on services, innovations, data offerings and customer care.
About “MVNO Global”.
“MVNO Global” is a name for initiative founded by leading experts of telecom and finance industry, striving to consolidate already operating Europe’s MVNO’s, and to create Europe’s global alternative mobile operator.
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