Business News Americas | January 20, 2011 | Josh Miller
Brazil could see a rise in mobile virtual network operators (MVNOs) throughout 2011, with airlines, supermarkets and sports associations potentially entering the mobile phone arena, formercommunications minister Juarez Quadros do Nascimento told BNamericas.
After a year of deliberation, telecom regulator Anatel approved in December 2010 “flexible rules” that allow the industry to self-police on the issue of MVNOs, said Nascimento, now a partner at Brazilian consultancy Orion Consultores Associados.
MVNOs essentially lease spectrum from licensed mobile operators to provide service. After arising with the 1999 launch of Virgin Mobile in the UK, MVNOs spread to other countries from the US to India. Of the 602 MVNOs active globally at end-1Q10, 65% operated in Europe, according to consultancy Wireless Intelligence.
“The reasons for failure or success globally are distinct and depend on specifics, since MVNOs focus marketing activities on clients already within their portfolio, taking advantage of their brands and existing relationships, instead of new consumers,” he said. “In Brazil, corporations with successful brands … can be niches for MVNOs.”
Nascimento mentioned airlines Gol and TAM, as well as supermarket chains Carrefour, Extra and Pao de Acucar, as potential MVNO targets. The market could ultimately yield 9.5mn clients and 1.8bn reais (US$1.08bn) in the next five years, he noted, citing a study from consultancy Signals Telecom Consulting.
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