MVNOs emerge as big business opportunity for IT services firms

Nanda Kasabe
Posted: Wednesday, May 07, 2008 at 2338 hrs IST
Updated: Wednesday, May 07, 2008 at 2338 hrs IST

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Pune, May 6: Mobile Virtual Network Operators (MVNOs) are emerging as a big business opportunity for software services companies such as Tech Mahindra. The company has entered into a partnership with FRiENDi Mobile, a Dubai-based company that is setting up a ‘virtual mobile network’ across the Middle East.

"This is the first time that Tech Mahindra is entering the Middle East market. FRiENDi Mobile is the first MVNO in the Middle East region. It will be rolling out a network across 14 locations in the MENA region in the next two years and Tech Mahindra will help the company in setting up business systems for this network," Krishna Gopal, vice-president - MEA- SAARC (sales) & Global Alliances, Tech Mahindra Limited, said.

"Under this arrangement, Tech Mahindra will design and develop all components of telecom software for executing business strategy across the region. This will include ERP business process automation systems, reporting and web self care systems using low cost technology," Krishna Gopal said.

"FRieENDi Mobile is hoping to accomplish in the Middle East what companies such as Virgin Mobile have done in Europe. Typically, MVNOs differ from traditional telecom operators. They do not have their own infrastructure. Instead virtual operators purchase time wholesale on the networks of established telcos and sell the minutes packaged with additional services, back to the customers. The additional services usually cater to niche segments that are ignored by major operators," he explained.

Tech Mahindra has done four projects in the MVNO segment in North America. "The company is now looking at Europe, America and the Cross Atlantic for growth in this space," Rajesh Chandiramani, GM, sales & marketing, Tech Mahindra, said.

In the testing domain, Tech Mahindra has won an engagement with a North American MVNO to set up a unit for testing billing and OSS systems. This will enable the client to speed up the market roll out of their products by providing automation, integration and validation testing.

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