Friday, February 15, 2008

What can we learn from the Telenor Q4 report

Defining and executing on a good wholesales strategy can have a significant impact on mobile operator’s results. Telenor released their Q4 and 2007 result this week, and apparently the loss of the wholesales deal with Tele2 has contributed to the drag from the domestic operation. If we turn this around, striking a good wholesales deal with a couple of good MVNOs, can boost the result of a mobile operator. Telenor was apparently in a relatively week position to negotiate the continuation of the agreement with Tele2 as the MVNO has its subscribers in on its own Home Location Register (HLR), which makes a change of host network easier. Otherwise they would have to issue new SIM-card to all users.

Back in Brazil wholesales is not widespread, though small cases exist. Most of the market seems to think that wholesales is not permitted in Brazil. That might be true for the MVNO model, but in the last few years the Branded Reseller business has emerged, mainly in Europe, and that model seem to be applicable in Brazil already from today. The issue is probably that no one wants to be the first mover, but as the market is getting closer to saturation, my bet is that things will move within a year.

For more information check out
Telenor Q4 report
Telenor: Q4 results show a maturing business

1 comment:

Luciana said...
This comment has been removed by a blog administrator.