Virtual operators and Russian reality. Virtual cellular operators - long jump Type of mobile virtual network operator

) began working with MVNO "Allo Incognito" (CJSC "CountryCom") in St. Petersburg, the operator "Sky Link" announced its readiness to cooperate with MVNO and at the beginning of 2011 began working with MVNO "Plus One". The Euroset project (in the Volga region) was discontinued after 2 years of trial work in the MVNO market. At the moment, MVNO projects in Russia do not develop their own networks, often limiting themselves to simply reselling traffic under their own brand, although the issued licenses already allow them to supplement or develop their networks.

Summary table of MVNO operators in Russia

Trademark	Cellular standard	Backbone network	Launch date	Note
SberMobile from Sberbank	GSM, UMTS, LTE	Tele2	February 1, 2018	In Moscow, delivery of SIM cards has been organized since February 1, 2018.
DANYCOM	GSM, UMTS, LTE	Tele2	December 1, 2017	The project started on December 1, 2017 in test mode. The end of the test period is June 1, 2018. The operator is available in 62 regions of the Russian Federation. From June 1, 2018, 4 commercial tariffs are available. During the test period, one free tariff is offered to its subscribers.
EASY4	GSM, UMTS, LTE	Tele2, MTS	June 1, 2018	The project started on June 1, 2018 in test mode.
Tinkoff Mobile		Tele2	December 13, 2017	MVNO operator launched on December 13, 2017. The technological partners for the launch were Forward Telecom and Jet Infosystems, the base operator (MNO) is Tele2. As Forward Telecom reported in February 2018, the project became a non-trivial task due to the tight deadlines: the operator was launched in 6 months.
ER-Telecom (Dom.ru)	GSM, UMTS, LTE	Tele2	II quarter 2016	Kirov, launch in other cities will begin in 2018.
Rostelecom	GSM, UMTS, LTE	Tele2	III quarter 2016	Until 2014, Rostelecom provided mobile communication services.
Aiva Mobile, MTT	GSM, UMTS, LTE	MTS, Tele2	May 7, 2014	The first Full MVNO project on the territory of the Russian Federation. Implemented by Interregional Transit Telecom. Currently, MTT is a leader in the MVNE market and provides partners with the opportunity to create Virtual Operators based on its own MVNE platform.
Atlas	4G, LTE	Beeline	November 7, 2016	Available at launch in Moscow and the Moscow region. The free mobile operator Atlas is an experimental project of the Russian Ventures fund. The operator was launched in MVNO format in collaboration with market leaders. The mission of the project is to provide free mobile communications to all residents of Russia and the CIS within 3 years.
JSC "GLONASS"	GSM	MTS, Beeline, Megafon	January 1, 2016
WorkTel	GSM, LTE	Beeline	2015	From June 1, 2017, all subscribers switched to service from the Unlimited company. Moscow and Moscow region, Tver, Smolensk, Kaluga, Ryazan, Krasnodar, St. Petersburg.
Mobilink	GSM	Beeline	2014	It operates in the Saratov region, but you can use communication services throughout Russia. Having our own call center allowed us to surpass the basic operator in such key parameters as price and service. Availability of VIP services for Mobilink clients.
"Svyaznoy Mobile"	GSM	MTS	2013	“Light” MVNO, a joint project of the Svyaznoy company and the telecom operator MTS. Was part of the projects of the Svyaznoy group. Svyaznoy Mobile provided voice communication and data services in GSM, 3G, 4G formats. It was available in all regions of the Russian Federation. Due to complications in relations between the companies, the project is currently stopped.
WhyFly	GSM	Beeline	2013	It operates in the Moscow region, but you can use communication services throughout Russia. The presence of our own billing system and call center allowed us to surpass the basic operator in such key parameters as price and service.
Central Telegraph	CDMA	Sky Link	2013	Moscow and Moscow region.
MTS	LTE	Yota	2012	Only in the city of Kazan.
Megaphone	LTE	Yota	2012
Fly	GSM	SMARTS	April 26, 2012	The project was launched by Tattelecom in the Republic of Tatarstan. In 2013, Tattelecom bought out the company CJSC SMARTS-Kazan, whose facilities were used to organize a virtual operator, thereby starting to provide services as a full-fledged cellular operator under the Letai brand.
Plus one	CDMA	Sky Link	2011	Project of the Rostelecom company. subscribers are transferred
Allyo (LandMarket LLC, a subsidiary of X5 Retail Group)	GSM	MTS	August 4, 2010	The license was received in August 2009. Connection packages began to be sold on August 4, 2010 in Karusel supermarkets. The operator operates in Moscow and the Moscow region. The project is closed.
"Just for communication"	GSM	Megaphone	2009	The project was closed in 2010.
Business Wave (Mango)	GSM	Megaphone	2009
"People's mobile phone"	IMT-MC-450, GSM	Tele2	Planned	The license was received in March 2009, but services are not provided.
"A-Mobile"	GSM	MTS	2008	(Auchan - only sales, service and leaving the tariff are free). Only Moscow, St. Petersburg, Yekaterinburg and Krasnodar.
"Yo"	GSM	SMARTS	2008	Republic of Mordovia, Republic of Bashkortostan, Republic of Tatarstan, Chuvash Republic, Saratov region, Ulyanovsk region and Astrakhan region.
"Unlimited"	GSM	Previously Beeline (“VimpelCom”), in 2013 the company released SIM cards with the name of the network “Unlimited”	2007	Currently, the company has released a line of unlimited tariffs under its own brand and is actively connecting premium class subscribers.
"Euroset"	GSM	SMARTS	2007
"Central Telegraph" (brands "Baza Mobile", "Megatel")	GSM	Megaphone	2006
AviaTel	GSM	Megaphone	2003
Federal Telecom	GSM	Megaphone	2003
Globus Telecom	GSM	Megaphone	2003
Investelectrosvyaz (Corbina)	GSM	Beeline (VimpelCom)	2003	The project was purchased by VimpelCom. Subscribers switched to Beeline.
Comet (Sinterra)	GSM	Megaphone	2003	The project is closed.
ComStar	GSM	Megaphone	2003
MasterTel	GSM	Megaphone	2003
Matrix Telecom	GSM	Megaphone	2003
Company TEL	GSM	Megaphone	2003
Technician Teleport	GSM	Megaphone	2003	The project is closed.
"Gars Telecom"	GSM, CDMA	Beeline, MegaFon	2003
"SunSim"	GSM	Beeline	2003
"Hello Incognito"	GSM, CDMA, MVNO, GPON	MegaFon, Sky Link, Beeline	2001	At the moment, they also provide communication services based on their own networks. One of the oldest virtual operators in the Russian Federation. The operator operates in Moscow, the Moscow region, St. Petersburg and the North-Western region.
Yota	GSM, LTE	Megaphone	2014	GSM based on Megafon and LTE based on its network.
Teletai	GSM, LTE	Beeline (VimpelCom)	2012	Moscow and St. Petersburg. Since 2017, it has been operating in 22 regions of Russia. The supplier of the MVNO solution for Teletai was Forward Telecom.
NetbyNet (Wifire)	GSM, LTE, MVNO	Megaphone	2006	Since June 10, 2011, NETBYNET has been a subsidiary and the main broadband broadband asset of MegaFon.
MCN Telecom	GSM, UMTS, LTE	Tele2	December 2017	Provides services in the cities: Moscow, St. Petersburg, Yekaterinburg, Krasnodar, Novosibirsk, Rostov-on-Don
СomfortWay	GSM, MVNO	TapMobile One	2016	It works through the multi-operator OEM platform TM ONE, which allows you to connect to different basic operators in 190 countries around the world using a roaming-free model.
MGTS		MTS

Based on MegaFon

• NetbyNet (WiFire brand) The company has existed since 2006 and was organized by uniting a number of broadband Internet access market operators operating in the capital. At the beginning of 2007, NETBYNET acquired the ORC operator, which allowed the company to occupy its niche in the B2B segment in Moscow. Since its creation, the operator has been actively developing, entering markets in new regions, and increasing its subscriber base. Since June 10, 2011, NETBYNET has been a subsidiary and the main broadband broadband asset of MegaFon.
• Gars Telecom ("Smart Mobile" service)

Since the beginning of 2003, the fixed-line operator for corporate clients, Gars Telecom, has been providing services in the MVNO format under the name Smart Mobile. Gars Telecom has also developed a legal structure that allows issuing a single invoice and has become an industry standard. The Gars Telecom solution involves one support service and an account for fixed and mobile services, providing end-to-end SLA and common short numbering for mobile and fixed subscribers. Smart Mobile is the only solution in Russia related to the B2B MVNO format. Interesting with unlimited tariffs and intelligent communication services. Currently it provides communications based on its own networks. Develops a mono-brand retail network.

• "Just for communication"

It was attractive due to cheap within-network (within-tariff) calls from 5 kopecks, SMS from 45 kopecks. By the end of 2010, it was planned to attract 1 million subscribers; in reality, about 600 thousand subscribers were attracted. This “virtual operator” does not provide for the use of WAP, MMS, and other additional services. There is GPRS: 1 MB. = 10r. - rounded to 100 KB, no GPRS packages.

Based on MTS

• "A-Mobile"

At the end of December 2008, the operator A-Mobile entered the market - a joint project of the Auchan hypermarket and MTS. Connection kits are sold only in Auchan stores. The tariff plan included 15 min. on the day of free calls with owners of the same tariff plans, and otherwise - average prices for the Moscow market. The tariff was archived and the “A-Mobile 2010” tariff was released, with unlimited calls between “A-Mobile” and “A-Mobile 2010” subscribers. Subscribers of the new tariff are provided with the unlimited calling service for a subscription fee; minutes for daily unpaid calls are no longer provided.

• Hello

On August 4, 2010, the virtual operator Allyo was launched - a joint project of X5 Retail Group (store chains Pyaterochka, Perekrestok, Karusel, Ostrov) and MTS. The only available tariff “One, two, three” provides for cheap calls within “Allyo”, to subscribers of other cellular networks and the accumulation of reward points for calls and purchases in the network’s supermarkets. On February 1, 2012, X5 Retail Group closed the Allyo project, and customer service was transferred to MTS while maintaining tariffs.

• Svyaznoy Mobile

In August 2013, a few months before the launch of its own virtual cellular operator, the Svyaznoy group of companies introduced a line of co-branded tariff plans together with MTS. Next, the partners launched a full-fledged “light” MVNO. On November 1, 2013, the first Svyaznoy Mobile subscriber was connected in the Moscow region. At the time of the launch of the virtual operator, connection was made to two tariff plans “FRIENDS” and “BIG”. Starting from November 10, the connection became available in all regions of MTS presence.

Based on Beeline

• "Unlimited"

The operator "Unlimited" (Algena LLC) entered the market in 2007, concluding a partnership agreement to provide a network with Beeline, MTS and Megafon. The company operates in Moscow and the region, St. Petersburg, Dagestan, Mordovia, Stavropol Territory, Belgorod Region, Novosibirsk, Khabarovsk and other regions of Russia. In 2012, a new line of two unlimited tariff plans was launched. Unlimited Russia and Unlimited Moscow and the region (local region) Tariffs are sold in our own office, in a network of sales points and with delivery throughout Moscow and the region. In 2013, the company left a technical service agreement only with the mobile operator Beeline, and also released SIM cards with its own network name. The company also provides its subscribers with a range of communication services, which includes worldwide Internet and city telephony based on its own virtual platform. The operator "Unlimited" provides its own tariffs that differ from the big three due to the presence of its own billing system.

• "Sim-Sim"

The operator Sim-Sim entered the market by concluding a partnership agreement to provide a network with Beeline. The company operates throughout Russia, but has sales points only in Moscow and the region, with dealer support from the MOBILE ELEMENT company. The operator has chosen two models for attracting customers. The first is the provision of cheap calls for visitors from Tajikistan, Uzbekistan, Kazakhstan, Kyrgyzstan, India, Vietnam and other countries. The second is the provision of Internet for online cash registers. The company also provides freemium tariffs.

• "GARTEL"

Operator "GARTEL" (Gartel LLC) is a completely unlimited communication operator for residents of Russia. The company was founded in 2003. In 2010, it entered into a cooperation agreement with VimpelCom. GARTEL presents the “Ideal Unlimited” tariff.

• "SunSim"

The operator SunSim (CJSC SunSim) entered the market in 2003, concluding a partnership agreement for the provision of a network with Beeline. The company operates in Moscow and the region. In 2013, a new line of three unlimited tariff plans was launched. Tariffs are sold in our own office and with delivery throughout Moscow and the region.

• "Teletay"

Business class operator, develops tariff plans for medium and small businesses. In the mobile communications market since 2010 (tourist mobile communications), it became an independent MVNO based on VimpelCom in 2012. The initial launch of “Teletay” was carried out in Moscow and the region, then in St. Petersburg, since 2016 it has been working in Vladimir, Tula and Yaroslavl, and since 2017 the project began working in another 19 regions of Russia. It sells tariffs both in its own office with delivery throughout Moscow, the Moscow region and St. Petersburg, and through the showrooms of the largest retail chains: Euroset, Svyaznoy, Telefon.ru. The technical partner for the transfer from the reseller of cellular communication services Beeline (VimpelCom) to the status of an MVNO operator was the Forward Telecom company.

• "WhyFly"

The business generation operator WhyFly (Mobilux LLC) entered the market in 2013, concluding a partnership agreement to provide a network with Beeline. The company operates in Moscow and the region.

• "WorkTel"

The operator entered the market in 2014. The partnership agreement with Beeline provides for the promotion of services under its own WorkTel brand (WorkTel LLC). The company operates in Moscow and Moscow Region, Tver region, Smolensk region, Kaluga region, Ryazan region, Krasnodar region, St. Petersburg and Leningrad region.

Based on "SMARTS"

• "Euroset"

The retailer Euroset tried its hand at the virtual cellular operator sector in 2007. The backbone network of the SMARTS company was used. The project worked until 2009 with little commercial success (few connections). After the acquisition of about half of the shares of Euroset by Vympel-Communications, further plans for MVNO were curtailed. Operating since 2008. In 2010, it is present in 7 Russian regions: the Republic of Mordovia, Bashkortostan, Tatarstan, Chuvash Republic, Saratov, Ulyanovsk, Astrakhan regions. Focuses on extremely low prices, especially GPRS. There are also free calls between holders of the same tariff. In fact, it is not a virtual operator, but a tariff grid of the SMARTS operator under the E brand.

• "NMT"

In 2009, the People's Mobile Phone project, created with the participation of the Moscow government, was issued a license from Roskomnadzor to operate as a virtual operator in Moscow, the Moscow region and 15 other regions of Russia. It is planned to use networks of two standards - IMT-MC-450 (“Sky Link”) and GSM (“SMARTS”).

• "Fly"

Worked since April 27, 2012 on the territory of the Republic of Tatarstan. The idea of ​​the project belongs to OJSC Tattelecom; the backbone network of the SMARTS company was used. At the beginning of 2013, about 1000 subscribers were connected. Currently, Tattelecom has bought out the SMARTS subsidiary CJSC SMARTS-Kazan, whose equipment was used to operate the virtual cellular operator and provides services as a full-fledged cellular operator under the same brand.

Based on Tele2

• Rostelecom

Previously, the company included 9 operators acquired during the acquisition of interregional communications companies, as well as a number of companies acquired later. Currently, cellular assets have been transferred to T2-RTK Holding LLC. By the third quarter of 2016, it is planned to restore the provision of mobile communications services using the MVNO model in the Tele2 network. Virgin Connect is a Russian telecom operator with a worldwide reputation

• Tinkoff Mobile

MVNO operator, launched on December 13, 2017. The technological partners for the launch were Forward Telecom and Jet Infosystems, the base operator (MNO) is Tele2. As Forward Telecom reported in February 2018, the launch of the virtual mobile operator Tinkoff Mobile became a non-trivial task due to the tight deadlines: the operator was launched in 6 months.

• SberMobile

Until 09.26.2018 "Let's Talk" - new operator cellular communications from Sberbank. ... Individual recommendations for optimizing costs for mobile connection. SberMobile launched on September 26, 2018 to replace Let's Talk.

• "DANYCOM"

virtual cellular operator (Full MVNO), operating on Tele2 networks (2G/3G/LTE), was launched on December 1, 2017 in a free test mode, which will last until June 1, 2018. The official launch date is scheduled for June 1, 2018. DANYCOM plans to create a cellular operator whose main features are: no roaming in Russia and the lowest prices for communication services, including outside the country.

• "MCN telecom"

MCN Telecom is a fixed and mobile operator (Full MVNO model), a developer of software products. Operating in the Russian telecommunications market since 2000. The company's head office is located in Moscow. Included in the list of ten licensed MgMn operators in Russia.

• "TTK Mobile"
• "Easy4"

The operator "Easy4" (Sonet LLC) entered the market in 2018, Easy4 is the first roaming-free international mobile operator. Easy4 has developed its own intelligent platform for creating virtual operators based on Multi IMSI technology for any business sector. Easy4 is a resident of the Skolkovo innovation center and is part of the international group of companies EASY CALL.

Based on Yota

• "Megaphone"

Before building our own LTE network, we use equipment from Scartel LLC. Billing and other network elements, except for the radio subsystem, are independent of the base operator.

• "MTS"

Before building our own LTE network, we use equipment from Scartel LLC. Billing and other network elements, except for the radio subsystem, are independent of the base operator. The first agreement was concluded for servicing MTS subscribers only in the city of Kazan.

Based on "TapMobile One"

The operator "" (Active Technology LLC) announced the launch on August 25, 2016 and operates through the multi-operator MVNE/OEM platform TapMobile One, which combines the provision of mobile communication services from mobile operators in 190 countries, subscribers and services from partners. ComfortWay provides only Internet access services and provides them in the Remote SIM provisioning standard, which was adopted by the GSMA in 2016. In the Asia-Pacific region - China, Hong Kong, Singapore, Japan, Australia, Malaysia, South Korea, Laos - ComfortWay operates through the leading regional operator China Unicom on a roaming-free model. The company does not report working with operators in other countries, including Russia.

Story

The first virtual operator in Russia was Corbina Telecom, which has been providing cellular communications since 1999 based on the DAMPS network of the Vimpel Communications company. Subsequently, the new owner bought the DAMPS division entirely.

At the beginning of 2003, the fixed-line operator Gars Telecom, operating in the corporate market, launched the Smart Mobile solution, which became the first MVNO in Russia based on GSM technology. In 2007, the “3G office” solution was launched with the host operator Sky Link.

On December 29, 2008, by Order No. 116 of December 29, 2008, Order No. 116 of December 29, 2008 “On approval of requirements for the provision of mobile radiotelephone communications services when using the business model of virtual networks of mobile radiotelephone communications” was approved by the Ministry of Communications and Mass Communications of the Russian Federation requirements for the provision of mobile radiotelephone services when using the business model of virtual mobile radiotelephone networks. The order was registered with the Ministry of Justice of the Russian Federation on March 13, 2009, and in the same year future MVNO operators begin to receive communication licenses. The first MVNO licenses were entered into the register in May 2009 (No. 67491 for Mobile Medical Technologies LLC and No. 67501 for People's Mobile Telephone LLC).

Virtual operators from other countries

There are very large virtual operators in the USA and Europe: Virgin Mobile, British Telecom and Blyk in the UK, Disney in the USA. In Europe, they represent significant competition to other operators (13 million subscribers in 2005): for example, in Finland, 10% of the long-distance connection market belongs to the operator Cubio.

", From 2015 to 2017, the number of MVNO subscribers more than doubled: from 2.5 million to 5.8 million customers and amounted to just over 2% of the total subscriber base. And according to forecasts, by the end of 2018, MVNOs will have 7 million connections.

According to experts, this growth is primarily due to the fact that MVNO operators are focusing on overcoming consumer dissatisfaction. This is often the focus of mid-sized and small companies that have the flexibility to provide targeted and relevant offerings to address specific customer needs. This can be not only a competitive price and simplicity of the offer, but also comprehensive customer service for all necessary services.

Thus, MVNOs work with narrow customer niches that are not very interesting to basic mobile operators due to the high cost of acquisition.

In addition, experts note projects when an MVNO is initially created to support a specific business or financial endeavor, be it the banking sector, such as Let's Talk (operator of Sberbank) and Tinkoff Mobile. In this case, MVNO becomes another way to strengthen loyalty and at the same time an additional factor in monetizing the customer base.

Analysts point to ensuring convergence of services as another factor expanding MVNO growth reserves, as the boundaries between fixed-line, broadband and mobile communications become increasingly blurred.

As we see it, the success of a virtual operator in Russia occurs in at least three cases. The first is when, in the process of developing a business strategy, high hopes are placed on MVNO brand awareness. In Russia, this category includes Sberbank Telecom (the Let's Talk brand) and Tinkoff Mobile. The second is a niche virtual operator aimed at a specific segment, for example, ethnic. And finally, virtual operators relying on VAS services. I’m almost sure that our success as an MVNO is due to the availability of additional services, that is, the creation of actual added value for the subscriber. The combination of fixed, mobile and corporate communications based on the Virtual PBX was implemented as a response to the consumer request of subscribers. For our clients, such synergy translates into convenience and budget savings on telecommunications.

Market drivers

According to experts, the potential of the MVNO market is high. According to forecasts, by 2022 the share of MVNOs in Russia will increase 7 times – to 14–15%. Despite this, many companies still show restraint in developing this direction, carefully analyzing both the positive experience and unsuccessful experiments of other operators. In addition, factors that can affect the state of the market are studied.

If we talk about the drivers of the MVNO market, then they include social, political, economic and legal factors. Any changes in legislation in the telecom industry can either “explode” the virtual operator market or lead to its fall. In fact, the existing accelerator of the emergence of virtual mobile operators in our country and the expected market growth with it is the decision of Tele 2 to become an MVNO Factory. The representative of the Big Four leases its own radio network to more than 15 Russian telecom operators to provide mobile communication services.

2017: The Ministry of Telecom and Mass Communications optimizes the work of virtual telecom operators

In particular, when connecting virtual communication networks to the communication networks of other operators, the draft order allows the use of elements of communication networks that form connection points of mobile operators. Previously, virtual operators had to build such interconnection points. According to the document, virtual networks can also be organized on professional digital radio networks of the TETRA standard.

According to the department, as of August 2017, Roskomnadzor issued 85 licenses for the provision of communication services under the MVNO model.

The draft order also assumes that orders of the Ministry of Telecom and Mass Communications dated December 29, 2008 No. 116 “On approval of the Requirements for the provision of mobile radiotelephone communication services when using the business model of virtual networks of mobile radiotelephone communications” and dated August 30, 2011 No. 215 “On measures for further implementation business models of virtual networks of mobile radiotelephone communications, in terms of the use of numbering resources,” will be declared invalid.

2015

Despite the rather long period of legalization of the Russian virtual operator market (MVNO), since 2009 it has been characterized by a very weak level of development compared to developed countries, low growth rates and instability, which intensifies during periods of economic instability. Based on the results of an analysis of more than 50 projects (more than 20 operating and in a high degree of readiness for launch), the following trends can be identified:

• the largest and most dynamic projects are developed within one group of companies, which includes a host operator (Yota - MegaFon, MGTS - MTS, etc.);
• a significant part of the MVNO market in terms of subscriber base is accounted for by Yota, this is the fastest growing virtual operator project based on the results of 2015;
• there are a large number of resellers on the market operating under an agency scheme - they do not require a license or numbering capacity;
• from 2013 to January 2016, there was a reduction in the number of MVNO licensees.

The main prospects for the development of the MVNO market in Russia are associated with the development of projects in the field of B2B and B2G, as well as with such areas as M2M and the Internet of Things (IoT). In particular, there is a trend of increasing activity on the part of telecom operators subordinate to large holdings (Gazprom, Transneft) towards launching their own full-cycle MVNOs with the prospect of servicing company employees and members of their families, as well as for use in industry technological processes within the framework of the concept M2M/IoT (data from J'son & Partners Consulting).

According to J"son & Partners Consulting, by the end of 2015 there were about 2.2 million MVNO subscribers in Russia, which is no more than 1% of the number of active mobile SIM cards. This figure approximately corresponds to the level of developing countries in Latin America and Eastern Europe and indicates that the MVNO market in Russia is still in the very early stages of its development. According to J'son & Partners Consulting forecasts (base scenario), the share of MVNOs will be about 2% (5 million) by 2020.

The main limiting factors for the development of the MVNO market are associated with the disinterest of large cellular operators (the Big Three) in increasing competition in the virtual absence of regulatory pressure. As a result, it is difficult and most often simply impossible for potential independent MVNOs in Russia to come to an agreement with cellular operators on the provision of cellular infrastructure for rent. Another obstacle is the unpreparedness of the regulatory framework. In particular, the legislation does not define the conditions for the activities of MVNAs - aggregators that could act as intermediaries for small virtual operators in commercial agreements with mobile operators in order to obtain more favorable conditions due to economies of scale. For large Full MVNOs, development is constrained by the need for high capital costs and the complexity of implementing an infrastructure sharing model.

An analysis of existing MVNO projects in Russia at different stages of implementation, planned, closed and “frozen” projects showed that the most “viable” MVNOs are projects launched by telecommunications companies within groups of companies (MTS, MegaFon).

The largest MVNO in Russia is Yota with a subscriber base of about 1.7 million at the end of 2015 and a market share of 78% in terms of the number of subscribers. Other major projects include Allo Incognito, MGTS, SIM-SIM, Matrix Mobile and Aiva Mobile:

A characteristic feature of the Russian MVNO market from the point of view of the target audience is the absence of discount operators (the niche is occupied by Tele2) and niche MVNOs targeted at various social and age groups (the niche is occupied by cellular operators).

2014

Mikhail Bykovsky, Deputy Director of the Department for Regulation of Radio Frequencies and Communication Networks of the Ministry of Telecom and Mass Communications, explained in May 2014 that virtual operators, depending on the scale and class of tasks assigned, implement different business models on the market. If a company itself organizes marketing and sales, carries out billing and tariffication, direct service and support for subscribers, independently provides them with services, is responsible for inter-operator interaction and traffic management, but does not have its own cellular network (base stations and corresponding frequency resource), then this company is a full-fledged virtual operator, and its business model is called Full MVNO. If traffic management and inter-operator interaction are excluded from the listed set of functions, then this is already a lightweight virtual operator business model, or Light MVNO. Two other models, where the operator functionality is even less, are called Second Brand and Branded Reseller.

2013

“Even taking into account MVNOs affiliated with host operators and sub-brands of mobile operators, the subscriber base of virtual operators in Russia does not exceed 1% of the number of active SIM cards. The MVNO market in Russia is still in the very early stages of its development,” said Evgeniy Vasiliev, CEO of the company “

Because of their smaller size, MVNOs are quicker to adapt to actual customer requirements than their larger telecom infrastructure partners. Virtual operators fill gaps in all market segments, sometimes providing unique services.

In the highly competitive telecom market (there are more than 500 operators in Europe alone), it is not easy to stand out, so there are MVNOs all over the world that are trying to win over customers with unusual promotions. Today we will talk about the most original offers from operators.

Sub-brands

Red Bull Mobile logo

In one of the most unusual technology partnerships, Red Bull has teamed up with Vodafone to launch its own virtual mobile operator. Yes, this is the Red Bull that makes the energy drink of the same name.

Red Bull MOBILE is fully integrated into the parent company's marketing strategy, including the following services: Red Bull branded phones, competitive rates, unlimited access to Red Bull TV and World Red Bull video content, as well as exclusive offers and discounts at all Red Bull events.

Other well-known brands also have experience of similar cooperation. For example, Virgin Group is an international conglomerate of companies founded by billionaire Richard Branson. The Virgin Group is best known for its activities in the field of recording and air travel. At the same time, Virgin Mobile became the world's first virtual mobile cellular operator, which began operating in 1999. It uses the cellular networks of existing operators around the world: in the UK - T-Mobile, in the USA - the CDMA network of Sprint, in Australia it works on the networks of Optus, in Canada - Bell Mobility, in France - Orange, in South Africa - Cell C.

In the US, Virgin Mobile made the unusual decision to become an MVNO aimed only at iPhone users. Virgin has just one plan for this: you get unlimited talk, text and mobile data for $50 a month. However, Virgin is "optimizing" streaming media to make better use of the channel: video resolution is limited to 480p, and any games are limited to 2Mbps.

Free communication

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When using Karma or Zero Mobile, you still need to make at least one payment to purchase a hotspot. However, there is an operator in the world that actually offers a completely free service - FreedomPop.

FreedomPop gives you 500MB of data, 200 minutes of talk time, and 500 text messages (via Wi-Fi) for free every month. The Overdrive Pro access point supports up to eight devices simultaneously and has an LCD display that provides real-time traffic information. The battery lasts for four hours of operation without a network.

The company provides Internet access at speeds of up to 6 Mbit/s (4G). Data plans above the free limit depend on whether you use one of the FreedomPop phones or connect your own GSM device.

Seamless networks

Google Project Fi logo

Many Wi-Fi hotspot manufacturers promise seamless switching between hotspots, but few can provide a smooth transition between Wi-Fi and GSM. Google's Project Fi virtual carrier combines the connectivity of Wi-Fi networks and the infrastructure of large carriers without dropping your connection as you move from one network to another, even during a call. But that's not the only thing that makes it unique.

At Google Fi, each plan starts at $20 and includes unlimited minutes and text messages. For an additional fee, you will have access to 4G and/or Wi-Fi networks in more than 135 countries around the world. Project Fi also offers group plans that allow you to add other users to your subscription for an additional $15 per month.

But Project Fi has a significant drawback: you can only connect to the carrier with certain phone models - Google Pixel 2, Pixel 2 XL, Moto X4, Google Pixel, Pixel XL, Nexus 5X, Nexus 6P and Nexus 6.

Niche product

With the help of MVNO, any companies and communities have the opportunity to create niche products for a narrow segment of the audience. For example, the Brazilian evangelical church Igreja Sara Nossa Terra created a virtual cellular operator, Mais Parceiros de Deus, for its 1.3 million parishioners. You can connect immediately in the temple.

In Brazil, this is the second operator created by an official religious organization. In 2015, the Worldwide Fellowship of the Assemblies of God launched the operator Mais AD. President Mais AD said that thanks to religious adherence, the operator's customer base has higher average revenue per user and lower churn than the market average.

Rapid Mobil application interface

Satisfying the needs of a narrow market segment is the strategy of many MVNOs. Moreover, the audience can be anyone. Mobile operator Ventocom in Austria has made a joint project with the Rapid football club. As a result, a virtual operator was created, focused on serving 900 thousand fans. Ventocom offered new customers discounts on season tickets, tickets to matches of their favorite team, as well as roaming packages for away matches.

High competition requires new approaches from business. Eighty percent of ambitious startups in the MVNO market in Europe fail due to a number of factors: insufficient understanding of telecom economics, insufficient number of subscribers, unstable partnerships, lack of planning and management. However, twenty percent of companies are truly leveraging the full potential of this highly adaptable telecommunications model. The most successful MVNO business models combine a well-thought-out management approach, a strategic plan for partnerships with other operators, and precise targeting of the chosen audience.

A virtual cellular operator is deprived of its own network completely or partially. Engaged in the sale of other people's facilities using a specially created brand. Empty equipment generates income for the owner. Some are taken over by the virtual cellular operator, lining their pockets.

Classification

Foreign legislation provides a rich classification. It is not surprising, for example, Yota, being part of Megafon, simultaneously buys up some of the resources. The rest he builds on his own. According to the share of other people's capacities, it is customary to distinguish thin and thick operators. Western slang does not translate well - the terms are dissonant. The classification is based on:

1. Access to infrastructure: base stations, transceivers, switching centers.
2. Tariffing, payment systems, services.
3. Services visible to clients: marketing policies, sales, contracts.

Western legislation divides operators according to the set of licenses granted. The type of enterprise shows the “thickness” of the technological base.

Brand resellers

Sometimes called superficial. The company's only assets are concluded contracts and a customer base.

This is interesting! The West labels pretty girls with a similar epithet.

Service Providers

Sometimes called lungs. They provide support services, manage marketing, sell services, and set tariffs themselves.

Advanced service provider

Full-fledged virtual cellular operator

Has a full range of equipment minus mobile networks. He actually rents towers, the rest is available.

Story

The 2G generation of cellular communications has reached a true boom. There was a shortage of providers. Line builders physically did not have time to sell the resource. It was difficult for new operators to find a place in the sun. One day (1997) the Norwegian Sense Communications decided to expand its presence in Scandinavia. The owners entered into an agreement with the Finnish Sonera. Meanwhile, the project to develop Sweden, Denmark, and Norway failed. The appeal submitted to the European Council was rejected (November 1999). We managed to buy the right for Telia/Telenor Mobile to use GSM networks. Sens began to serve the already recruited clients of the partner company.

The legislative framework

After witnessing the fatal collapse of a start-up company, a Danish legislator saw considerable opportunity for a new form of transactions. The fresh model provided a route for newcomers to conquer the market, starting in May 2000. Telecommunications whales were selling the resource to the green chicks of the industry. In hot August, SONOFON presented Europe with its first virtual brand – tele2. The Scandinavian segment, supported by legislation, gradually grabbed 10% of the total pie.

The UK has obliged cellular companies to sell part of their resources to new companies. Russia willingly accepted resellers (X5 Retail Group) Auchan, Allyo, A-Mobile. Yota, bought by Megafon, is considered the first successful project in the industry. MTS gave birth to MGTS, VimpelCom - Sim Sim. The Big Three are reluctant to allocate resources to third-party projects - they are too lazy to lose subscribers.

Celebrating Independence Day 2008, US citizens had 40 operators to choose from, breaking the channel record set by Roger Waters. 7% of the population preferred resellers, a number that grew steadily in the first decade of the millennium. There are curious cases caused by a well-thought-out strategy:

1. The Danish company TDC sold traffic to Telmore.
2. The reseller accurately guessed the price, making a profitable offer to the population. At the same time I made a profit.
3. The seller was forced to acquire its own subsidiary, paying DKK 400 million.

As of June 2014, the following were registered:

1. 943 virtual operators.
2. 255 spin-off provider brands.

There was a slight increase compared to the level of 2012. According to GSMA research, the five-year plan 2010-1015 showed an increase in the industry by 70%. The leaders in virtual service provision are:

• Germany – 129 units (some sources put the figure at over 300).
• USA – 108 units.
• Great Britain - 76 units.
• Netherlands - 56 units.
• France - 49 units.
• Australia, Denmark - 43 units.
• Spain – 35 units.
• Poland – 27 units.
• Belgium – 26 units.

Russian realities

Japan is catching up. India opened the competition in 2016, issuing a unified license to the first winner in May 2017. In parallel, the Russian Tele 2 decided to buy capacity. The provider's messengers visited Sberbank, Rostelecom, Tinkoff Bank, Transtelecom. Tinkov immediately expressed a “universal” opinion:

• Tired of the monopoly of the troika, poor quality service, unsuitable tariffs, deception. Tinkoff intends to win by launching a new mobile communications provider.

Bank managers strive to increase client loyalty. They remember about SMS services (client-bank), advertising mailings. The VimpelCom expert wisely proclaims the mutual independence of the loyalties of the bank and the operator, questioning the fact of the immediate transfer of deposit holders obedient to the will of the board of the financial structure. Sometimes the purpose of the venture is the subsequent sale of the formed structure to parent companies. Anatoly Smorgoninsky prophesies:

• The only chance for an infrastructure owner to make a profit is to give away a clearly unprofitable segment. The increased cost of attracting clientele would be an obvious example.

The former director of Yota emphasizes the incredible financial stability of Sberbank, hinting at the latter’s ability to pull the blanket. Adding, however, a thought that concerns obtaining possible “interesting” results from mutual cooperation.

Last news

In the fall of 2017, MTS lost 0.7% of subscribers, while simultaneously increasing profits by 3.2%. Unscheduled introduction of new tariffs? The vice president is pleased with the lack of losses. “Everything is fine,” added Dubovskov. The line of package tariffs became the second source of income for the company. Nikolaev believes that the remaining customers willingly buy more expensive offers, explaining the situation by a decrease in the level of competition among retailers. Is it time to master the segment?

Legal regulation

The European Commission issued guidelines in 2003 to help operators check the competitiveness of the services they provide. The measures allowed the governments of Ireland and France to modify legislation. Countries in the Arab world accepted the first virtual operators in 2010. As of September 2014, the Brazilian share is 0.04% of the market.

Operating principle

1. A virtual provider has the right to sell services cheaper than the host network, luring away some of the clients.
2. Individual characteristics of the average citizen. If I offended you, I’ll leave. A striking example: the relationship between the store chains Pokupochka, Pyaterochka... If you're tired of one, choose another. The owner of the establishment remains the same.
3. A well-thought-out marketing strategy sometimes decides the client’s choice. A talented virtual operator is able to receive money where the owner of the network despairs of making a profit.
4. Sometimes a well-thought-out market strategy allows a competitor to be eliminated by acquisition. Some brands are getting new names.

The essence of the policy of “divide and conquer” is complemented by the reality of life “if you don’t know how to do it yourself, give it to others.” Two short theses completely reveal the hidden essence of the issue.

Partial list of Russian companies

Russian companies rarely undertake international projects. Physical transatlantic cable is being snapped up by providers. Any global operator can be called virtual, selling rented property. Here it is important to apply the right measure when giving epithets to the event. MTS acts as a virtual operator, buying up Yota's Kazan capacities. Sky Link, which provides the property, is itself a subsidiary of Tele2 Russia, proud of its domestic roots.

Svyaznoy Mobile

Project of two companies:

1. Messenger.

The service has now been stopped. As of November 2014, it was considered the largest Russian example of a company selling other people's resources, having acquired 700 thousand clients.

Corbina Telecom

Moscow telecommunications company, now owned by VimpelCom (owner of the Beeline trademark). Home Internet is openly referred to as a “bee line.” Separate ownership was buried in 2008: the partner company Golden Telecom, which previously owned a controlling stake, was absorbed by VimpelCom. Since the official website is openly decorated with the Beeline logo, it is difficult to call the provider virtual in relation to cellular communications. Corbina Telecom SIM cards are not available for sale.

Localization

• Capital.
• Moscow region.
• Regions:

1. Volgograd.
2. Volzhsky.
3. Voronezh.
4. Kostroma.
5. Orenburg.
6. Rostov-on-Don.
7. Ryazan.
8. Saratov.
9. Tomsk
10. Tula.
11. Ulyanovsk
12. Yaroslavl.

Channels are rented from companies that are unable to sell resources, or from physical line providers, like Rostelecom, TransTelecom. Beeline bought the property of Golden Telecom, creating its own metropolitan Wi-Fi network.

Services

1. Mobile connection.
2. Internet VPN.
3. A television.
4. Hosting, including email accounts.
5. High-speed access for legal entities at speeds up to 100 Mbit/s. The house is connected with optical fiber, and a copper cable is installed inside the building. The regions offer radio relay line services, or xDSL.
6. Point-to-point information transfer via Ethernet.
7. Digital telephony.
8. IP telephony.
9. Tracker.

Network structure

Over 100 districts of the capital are covered. The vessels of the two 20 Gbps rings are controlled by Cisco routers, forming the core network. Branches (1 Gbit/s) carry information flows around the area switched by Cisco Catalyst. Regional nodes are connected by 1-3 optical cables. Some remote areas operate radio channels with a capacity of 2-100 Mbit/s. The width of the building’s individual channel is 1 Gbit/s; twisted pair cables of category 5E go to the apartments. Remote cities in the Moscow region have acquired their own digital communications distribution points.

1. CountryCom (Hallo Incognito).
2. Central Telegraph...

Avia Mobile

A completely virtual provider covering the Russian side. Provides partners with a chance to start their own business using similar conditions. The operator serves the Leningrad and Moscow regions, providing a unique service “SIM card with two numbers”. Helps avoid roaming fees for people who constantly change their registration.

Yota

Buys Megafon's GSM capacity, a merger of companies is completed. 4G network (first Russian, October 9, 2012, Moscow) own. Initially, the Scartel structure acted, increasing resources. April 2014 stunned the capital with the news: the appearance of a new operator was coming. Initially, the Yota brand was a joint venture between Megafon and Scartel.

In late summer, representatives of the newly created brand began issuing SIM cards to people who had previously expressed a desire to try Novosibirsk quality. The operator added a piece of plastic with support for electronic signature, NFC.

Rostelecom

Previously, the company, the receiver of the property of the USSR, the fruit of the activities of Sovtelecom, provided mobile communication services using its own resources. Later (February 2014) lines in Russia were bought by Tele 2: merger of assets, including licenses from constituent entities of the Russian Federation. Today Rostelecom continues to sell, in parallel with Tele 2.

How to choose

The Virtual Mobile Network concept caught on. The average user does not care about the owner of the infrastructure. An endless list of names will not help much. The leading role is assumed by:

• Marketing Policy.
• Technical support service.
• Tariff plans.

Purely subjectively, the population is irritated by the imposition of services. Some offices openly rob people who apply. Short-term profit turns into long-term aversion and reluctance to use the phone. The policy of draining the finances of distressed individuals is causing popular speculation. Operators add fuel by blocking numbers with a positive balance that have been inactive for 3 months, or by forcibly changing the tariff plan. Individuals and company representatives responsible for providing communications complain. The situation is aggravated by the intention to cancel roaming: deliberately predatory conditions appear for home regions.

The current situation brings little joy to socially vulnerable segments of the population. Grandmothers refuse to understand some subtle marketing ploys.

New opportunities

Organizing a Russian business is not easy for a beginner. More often, protégés are eliminated. Please note: the Yota mobile operator was organized by an employee of a consulting company. Simply put, the likelihood of a profitable franchise business being offered is unlikely. The logic is simple: why sell a profitable offer? Take out a loan, borrow, carry out your business plan, make a profit. They sell proposals that require a significant investment of time, nerves, and human resources.

Instability scares off Western investors. In the summer of 2017, Tinkoff, Sberbank, TTK expressed a desire to grab a piece of the pie. The statistics are inexorable: 6 million subscribers preferred virtual operators.

Virtual operators (Mobile Virtual Network Operators) are actively developing despite the fact that they do not have their own infrastructure. They buy network minutes and gigabytes of traffic from real (core) mobile network operators (MNOs) and resell them to customers - both residential and corporate. What is this - a promising direction, or banal mediation? Let's figure it out together.

Based on the level of development of their own services, they distinguish between a lightweight (Light MVNO) and a full virtualization model (Full MVNO). The former rent, among other things, traffic routing services, while the latter physically control everything except base stations. There are also intermediate forms of subsidiaries in the form of service providers and resellers. For greater clarity, we presented these differences in the table.

WhyMNOCan’t they themselves sell services to clients directly?

They can and do sell, but MNO always has a reserve of numbering capacity and throughput. Most of the time it remains unclaimed, and when everyone starts congratulating each other at the same time (for example, Happy New Year), the reserve is still not enough. It only helps out in situations where there is a small and short-term increase in user activity. The larger the operator, the greater the reserve he has, and it would be nice to transfer this ballast to at least self-sufficiency. Large MNOs (like T-Mobile and Verizon) have been doing this for a long time. They enter into contracts with virtual operators and dynamically offload unused capacity to them at minimum “wholesale” prices.

How can a virtual operator keep tariffs lower than those of a real one?

The virtual operator does not have capital costs for installing base stations, and bureaucratic costs are kept to a minimum. It can use the towers of several operators at once, expanding the coverage area and reducing the cost of forwarding. In addition, it provides subscribers with a favorable offer by simply playing on the difference in tariffs. A virtual operator always buys the services of real ones at several times cheaper than they go to end consumers. MVNOs mainly promote roaming-free tariff plans and the Multi-IMSI function (multiple numbers on one SIM card). Thanks to it, while traveling you can use the Internet and make calls at the rates of your home region.

Aren't base operators afraid of competition?

Abroad, competition is encouraged by the antimonopoly service, as it improves the market. If a backbone provider leases its capacity to virtual operators, then there will be much fewer claims against it from regulatory authorities. At the same time, the emergence of MVNOs in Russia was held back for a long time precisely because of concerns about domestic competition. It can really arise if a virtual operator guessed right with some specific market niche and began to actually take away potential profit from the base one. In such cases, the infrastructure owner may change his mind about reselling traffic and spin off a subsidiary company with similar functions from his structure. However, a subsidiary requires investment. It independently manages the part of the infrastructure and assets allocated to it, issues licenses for the provision of telematics services, radio frequency broadcasting and other permitting documents. Therefore, it is often more profitable to leave everything as is and simply buy an emerging competitor while it is young.

For example, the VEON holding has established several subsidiaries, including Vympel-Communications, which promotes communication services under the Beeline brand. In turn, Beeline provided its capacity to the virtual operator Sim Telecom, which since 2014 has been known under the Sim Sim brand. It has gained popularity among migrant workers thanks to its extensive sales network (about 4,000 points near train stations, markets and other crowded places), low rates for calls to CIS countries and support from call center operators in different languages ​​(including Uzbek and Tajik). Previously, Beeline underestimated this segment, but in 2016 it saw its scale and bought a controlling stake in Sim Telecom. This is exactly the case when a virtual operator helped a real operator master a new market niche.

How common are virtual operators?

In November 2017, Virgin Mobile launched an MVNO service in Russia. Now the brainchild of Richard Branson is represented in 67 regions, but so far Virgin mobile services are available only to those subscribers who have already connected their home Internet and digital television. The company's main focus is on business clients, including Sberbank, Alfa-Bank and M.Video.

On June 1, a new virtual operator began operating in Russia - Easy4. This is the brand of the international company EasyCall, in which private investment funds have invested about one billion rubles. The interests of EasyCall in Russia will be represented by Sonet LLC, which already has agreements with MTS and Tele2. The company is also focused primarily on corporate clients. It also has special tariffs for travelers and servicing IoT devices (for example, trackers, mobile terminals and cash registers).

All virtual operators in Russia have difficulties implementing the provisions of the laws from the Yarovaya package. In terms of data storage, it came into force on July 1, 2018. Now operators are required to store recordings of voice calls, text messages and Internet traffic of all users for six months. To fulfill these requirements, backbone providers purchased expensive and specific equipment at their own expense. Does renting infrastructure imply access to it for virtual operators? If so, these are huge security risks. If not, you will have to incur capital costs and lose the benefits of a virtual operator. Should the virtual operator independently provide law enforcement agencies with access to the accumulated data, or can he forward the request to the real operator? So far there are no clear answers to these questions.

conclusions

Virtual operators are gradually increasing their share throughout the world. They are of interest primarily to those subscribers whose needs are very different from the needs of the majority. For example, you often make calls to neighboring countries, use mobile sales equipment, or want to organize your corporate communications. In the USA and Europe, this is a long-tested system for providing communication services. In Russia it also finds its fans, but in general it develops more slowly. This is due to the peculiarities of local laws and the reluctance of the Big Three (now the Four) to re-divide the market.

There are a number of trends that could potentially increase demand for MVNOs. This is the development of IoT, corporate networks and mobile payment systems. They generate not so much a lot of traffic (the lion's share of it always comes from video content), but a large number of small transactions. Sensor polling via the Internet and remote commands, checking file versions with shared access, regular and push notifications, GPS tracking logs, SMS with confirmation codes - all this is more profitable to transmit under a specific tariff plan through a virtual network that combines the strengths of different backbone providers.