BUENOS AIRES, Argentina-The Telecommunications Secretary in Argentina authorized Millicom to rent the infrastructure network of existing cellular operators. This is the first time there has been a legal directive in place that allows for a mobile virtual network operator (MVNO) to operate in the country.
Millicom has not announced what its strategy as an MVNO will be or when it will offer a cellular telephone service based on the MVNO model. Millicom Argentina has 5,000 customers using its 3.5 GHz wireless local loop (WLL) service.
“I’m skeptical about the viability of Millicom in Argentina as an MVNO,” said Daniel Torras, the Americas director of Pyramid Research. However, he said Millicom could be successful if it associates itself with a strong local partner or if it lays a stake on “brands such as Boca Juniors or River Plate,” two football (soccer) clubs with a large number of fans, who may be interested in a made-to-measure service.
In Bolivia, three months ago, the Telecommunications Cooperative of Santa Cruz (Cotas) converted itself into the first MVNO in the region, when it launched Cotas Mobile, using the GSM network of Nuevatel. For the cooperative, it is a way for it to prove its loyalty to its partners, by enlarging its service portfolio. For Nuevatel, it is a victory over Telecel (Millicom), as the operator had announced last year that Cotas would be its MVNO, but the cooperative opted for Nuevatel instead.
