delta partners analyse the potential of mvnos
Delta Partners assess the arrival of MVNOs to the Middle East – threat or opportunity
Delta Partners, a leading Dubai based advisory and investment firm specialised in telecoms, has just announced the release of a white paper entitled: MVNOs in the Middle East – Threat or Opportunity. The paper discusses the arrival of Mobile Virtual Network Operators (MVNOs) into the region, assessing whether or not this new revolutionary business model will be a potential threat or opportunity in the region.
MVNOs are telecom players that use other operators’ infrastructure to offer mobile phone services to the end user. This phenomenon has been widely implemented in more mature markets. MVNOs provide Middle Eastern regulators with the opportunity to introduce levels of competition that would not be economically viable through traditional competition models.
“The introduction of MVNOs would fundamentally change the industry landscape,” commented Rogier van Driessche, Partner with Delta Partners and co-author of the white paper. “It is a truly disruptive model that requires careful analysis by all stakeholders.”
The white paper outlines the key questions that stakeholders – regulators, operators and investors - will need to answer and extracts learnings from European case studies.
“We strongly believe that this year the first MVNOs will find a route to market in the Middle East,” says van Driessche. “We predict that Jordan will open to MVNOs first, while other markets with a strong likelihood for the business model’s introduction are Oman and Bahrain. This is why analysing the possibilities as well as the pitfalls of this industry with multi-billion dollar potential is now extremely relevant.”
As MVNOs will further expand the availability of mobile telephony and make pricing more competitive, it will be the consumer who will reap the benefits.
