New growth points for a mobile operator s business Every mature mobile communications market reaches a point where its players find themselves struggling to find any new subscribers or keep their revenue from communications services flowing. It is when they begin to realize how they can benefit from the MVNO (mobile virtual network operator) business model and use it to hone their edge over the competition. Going down the MVNO route is a great way to increase the number of active subscribers by reaching out to niche market segments, providing an alternative for potential «switchers» and ensuring faster return on investment in communications infrastructure. However, you cannot be successful in the MVNO business unless you have a reliable technological solution, such as to be flexible enough to implement innovative marketing strategies and ensure the highest level of security and control. 2
OVERVIEW MVNE is a platform that lets you not only create and launch new MVNOs but also make use of existing ones by incorporating them. What we offer is a comprehensive carrier-grade solution that includes both software and, if necessary, hardware components. Our MVNE platform is designed to automate the operations of telecom operators who are going to be actively involved in the MVNO business with the aim of providing mobile communications and broadband services. In its full configuration, the platform features two major components called MVNE Core Network and MVNE BSS Core, covering every aspect of the standard business processes and enabling virtual operators of any type. The solution can be installed on an x86 hardware platform running Linux, which has become a de-facto industry standard and which is available in any local market. Telecom operators may either buy the necessary hardware based on our recommendations or make use of their existing equipment (which is expected to guarantee a comparable level of performance). MVNE CORE NETWORK Drawing on our experience in building MVNE/MVNOs, we suggest deploying a number of core-network nodes and elements, such as: CS CORE HLR / AuC / HSS GMSC STP MESSAGING & MEDIA SMSC / USSDC MMSC IVR IN & VAS CAMEL SCP CAMEL-gateway/ proxy MVNE BSS CORE Normally, we group the software products that the MVNE platform includes by the functional areas they cover and the telecom operators needs they help satisfy: Infrastructure management Payments 1 3 5 and settlement Billing charging and real-time Product management and service 2 4 6 Roaming and interconnect Customer relationship management RADIO MVNE CORE NETWORK MVO NETWORK MVNE MVNE BSS CORE MVNO SALES CUSTOMER CARE MARKETING WWW.BILLING.RU 3
FEATURES The flagship software products that MVNE relies on enable quick and smooth implementation of complex real-time charging and service delivery scenarios, ranging from sub-brand development strategies to direct entry into the MVNO services market. 4
SOLUTION ARCHITECTURE WWW.BILLING.RU 5
BENEFITS A SOURCE OF ADDITIONAL REVENUE With the MVNE platform installed, deployed and running, mobile network operators start generating revenue not only by selling mobile traffic but also by making their MVNE infrastructure available for rent. The range of technological components that can be rented may vary depending on the business model of each particular MVNO, ensuring that every business process of every virtual operator model, such as Full, Lite or Reseller, is fully covered. MODEST HARDWARE REQUIREMENTS MVNE is a cross-platform solution that supports virtualization and that can run on inexpensive commodity x86 servers, which means that its hardware requirements are rather modest. OPTIMAL TOTAL COST OF OWNERSHIP (TCO) We offer our customers flexible pricing, guaranteeing that our MVNE solution does not carry any extra (hidden) fees or costs. In addition, given today s Russian economic environment, offerings from Russian software companies deliver even greater value in terms of pricing and strategic benefits. CUSTOMER ACQUISITION, SUBSCRIBER BASE EXPANSION Using Peter-Service s infrastructure to implement virtual operators allows a conventional mobile network operator to strengthen its position in the market by acquiring new active subscribers in niche segments and encouraging competitors subscribers to switch. In addition, the operator can create new brands on its own and employ them to prevent subscriber churn. NO INTERMEDIARIES With a local MVNE solution deployed, the telecom operator gets every feature of the platform without having to enter into any contractual relations with any intermediaries. The operator who runs the MVNE platform can set it up and maintain on its own as well as create new MVNOs based on built-in template business processes without having to seek any help from the solution provider. 6
CASES CASE 2: LITE MVNO A business MVNO is a large-sized company with a distributed network of branches that decides to create a virtual operator (banks, IT companies, government agencies): CASE 1: RESELLER A discount MVNO that specializes in providing services to low-income subscribers: Branded services (branded packaging and SIM cards) Prepaid plans Simple services (voice and SMS) A pre-billing system for statistics collection and pre-processing plus real-time control Branded services (branded packaging and SIM cards) Tariff and VAS control and setup CRM + self-service tools for subscribers and partners Full-scale billing functionality Customized reporting Payment acceptance CASE 3: FULL MVNO A telecom MVNO is a communications service provider running its own core network (broadband and PSTN): Branded services (branded packaging and SIM cards) Tariff and VAS control and setup A number management system Full-scale billing functionality СRM and self-service Product and service management Wholesale billing WWW.BILLING.RU 7
SUCCESS STORIES Vainakh Telecom, a Chechen Republicbased telecom operator, had been providing broadband, digital TV and video telephony services for quite a while, planning to enter the mobile communications market. This became possible in 2011, after new legislation was adopted to introduce virtual network business models into the local market. Vainakh Telecom applied for a numbering range, formed an alliance with Sky Link, its partner, and launched an MVNO over the Sky Link s existing GSM network. The operator chose the MVNO solution from Peter-Service to automate its MVNO-related business processes. With its well-designed business processes and smoothly functioning software, Vainakh Telecom managed to become the second largest player in the republic s mobile communications market by subscriber base size and revenue. The project was implemented in several stages: GSM launch based on PETER-SERVICE BSS Broadband migration and launch LTE launch MNP support In 2012, Gazprom, a group of companies, decided to reorganize its corporate telephony service. The provider of the holding used an outdated billing system that could not support complex settlement models in relations with mobile and fixed communications providers. Peter-Service offered a solution specifically developed for inter-partner settlement (interconnect). At some point in the course of the project, the customer decided to change the strategy and set new goals, asking to install a set of BSS products that would allow the holding to deploy a full-scale MVNO and set up roaming-free zones for corporate subscribers all across the country. To achieve those goals, a line of specialized products was deployed, and PETER-SER- VICE BSS, a convergent billing solution, was launched, allowing the customer to maintain full control over personal data and guarantee the security of corporate communications. In 2014, a pilot MVNO was deployed in the North West Federal District. After the project got positive feedback, it was expanded to implement such tasks as migrating the fixed-line and broadband subscribers, implementing CRM, providing M2M and DPI functionality, etc. 8
Aiming to expand its market reach, MegaFon, one of the largest communications providers in Russia, had been acquiring regional mobile network operators. As a result, MegaFon built a portfolio consisting of two geographically close companies that were named Center Branch and Capital Branch. The company s management was going to merge those business units in order to optimize the processes and standardize the technological policy. However, it turned out that, according to the relevant legislation, radio frequency licenses could not be transferred to another company; so, a complete merger of the two companies was impossible. Peter-Service suggested a solution to the problem which was based on the MVNO business model; it was accepted, and two independent schemes were implemented in the billing system of Capital Branch, and the billing solution of Center Branch was stopped and removed from service. The subscribers of the central business unit of MegaFon were migrated to a separate billing branch of Capital Branch with the minimum possible system downtime. Once the project was completed, it allowed the company to achieve the following: MegaFon Capital became an MVNO for the subscribers of MegaFon Center MegaFon as a holding kept its radio frequency licenses The operator reduced its operational costs by cutting personnel costs at MegaFon Center WWW.BILLING.RU 9
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www.billing.ru PETER-SERVICE, CJSC 36 Shpalernaya St. St. Petersburg, 191123, Russia tel: +7 (812) 326 12 99 fax: +7 (812) 326 12 98 e-mail: sales@billing.ru Any names and trademarks in this document may constitute intellectual property of the corresponding copyright holders. The document is intended for information purposes only and does not constitute a commercial proposal. Although every effort has been made to ensure accuracy and currency of the information, we cannot guarantee that it does not contain unintentional errors and is fully consistent with the latest software versions due to continuous enhancement of the products and services mentioned in this document. Information about products performance and possible user benefits is based on test results and practical application experience. We cannot guarantee consistency of the results and product adaptability in some instances. Any Information contained in this document may be altered without notice. PETER-SERVICE, 2016. All rights reserved #BR001-03E