Romania’s first MVNE launching imminently

In a boon to mobile virtual network operators in Romania, the country will soon see the launch of its first MVNE (Mobile Virtual Network Enabler), brought about by a partnership between system integrator Computaris and Romanian operator Prime Telecom.

“The launch of the first MVNE in Romania will facilitate the launch of mobile virtual network operators in the domestic market, as MVNOs will be able to significantly reduce their start-up costs by not having to invest in network equipment and infrastructure. In turn, the introduction of the MVNO business model in Romania will increase the competition in the mobile communications market and stimulate the launch of new, innovative services” said Romanian industry veteran Marian Velicu.

In addition to providing the infrastructure, MVNEs are able to support MVNOs with no or limited telecom expertise, reducing their burden by handling a broad range of services ranging from billing, network element provisioning and administration, thus enabling MVNOs to focus on their core strengths of brand, customer loyalty and marketing by leaving the back-end enablement and operations to MVNEs.

“By embracing a partnership with an experienced mobile virtual network enabler, an MVNO reduces its technical risks and also the financial, human and time investments made for developing specific know-how. MVNEs’ capabilities can cover all MVNOs’ processes, being able to offer end-to-end solutions, such as integrating BSS/OSS systems with the mobile operator’s elements, and offering technical and operational support on MVNOs start-up” states Bogdan Danila, Computaris CTO.

In more mature markets, MVNOs have a significant market share, being accepted by incumbents for over 10 years and viewed as opportunities to generate new revenue streams and attract new, untapped customer niches. Mobile virtual operators have a market share of 19% in Germany, 16% in Norway, 14% in the Netherlands, 13% in the UK and 7% in the US. In other markets, more similar to the one in Romania, MVNOs have been operating for a few years, having a 3.5% market share in Hungary and over 1.6% in Poland.

Mobile virtual network operators are services providers that have an established customer base, but do not own or operate a telecom infrastructure. To offer mobile services to their customers, MVNOs rent and use core network elements of a traditional mobile operator, but they hold the sole responsibility for meeting their legal obligations towards customers.

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