Modern Methods for Mobiles to Modern Markets
There are frequently worries in industries such as telecommunications that there isn’t sufficient competition in the market. An example of this can be seen in the USA where people suffer because pretty much the whole country uses one of two companies for mobile services, thus giving no true incentive for the companies to cut costs. In the last decade in the EEC a range of attempts have been launched by governments to increase the level of competition. This started by making some major mobile network operators (MNOs) to let new businesses to piggy-back on their hardware.
The bonus for the MVNOs (that would be mobile virtual network operators) is that they have the opportunity to in theory make efficiencies by not needing to pay for all the improvements in network hardware.The challenge, on the other hand, is that you’re almost certainly dependent on the carrier network for your own services, and by extension, on the local legislative to ensure that you get treated fairly and that you don’t need to spend over the odds for the ability to operate on the network.
The aim of MVNOs is that they provide a service to smaller, niche demographics, and intensify competition. With a lot of specialist markets in the world and favourable market conditions at present there are some 650 MVNOs on the planet, run by 515 different enterprises (for brand reasons, some businesses run a range of different MVNOs inside the same country).
In the last few years MNOs (the businesses who run the networks) have started to see a market advantage from MVNOs using their systems, as this indirectly means they have a greater portion of the market, and of course this has further encouraged the development of MVNOs.
For us it’s all encouraging news, smaller companies working with small markets are able to keep going. For example, MVNOs are the main companies in the world who offer international calls, and a growing number of the best pay as you go companies also don’t run their own network hardware.At the end of the day, anything that intensifies competition is great for the customer, so we can all hope things continue to go well for MVNOs.
Hailey Marshall - About the Author:
George Robinson is a free lance technology consultant who specialises in communications issues in the developing world, he recommends Lebara for internationally low cost calls