Virtually Mobile: Assessing the Opportunity for MVNOs in India

| Point of View

Addressing the attractive market segments in India

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Recent reforms by the Indian telecom regulator are
likely to result in the introduction of MVNOs into this market. Despite
the high level of competition and low tariffs prevalent in the country, an MVNO
can be a relatively low-risk entry option for players. The economic viability
of MVNOs will hinge to a very large extent on the wholesale rates that the
business manages to negotiate. The youth, enterprise, premium services and
heavy data usage segments should be immediate opportunities which the MVNOs can

Capgemini recommends
a thin operating model for MVNOs commencing operations—unless dictated otherwise
by the value proposition—so as to be able to break-even at a lower subscriber
base. MNOs should view the introduction of MVNOs as an opportunity to reach out
to segments they are presently unable to address. Due to a large number of
players in the market, MNOs will need to have comprehensive wholesale
strategies in place to attract MVNOs onto their network. These operators should
provide deep discounts on wholesale rates to remain competitive, and garner
additional revenues through other network resources and in-house MVNEs.