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Monday, November 07, 2005

MVNO in Malaysia

Competition is good for business, and new market players tend to stir up even a consolidated market. Thus, I evaluate the emergence of MVNO's with Asia Telecommunications Sdn Bhd (Asia Telecoms) and MCAT Gen Sdn Bhd in Malaysia positively. MVNOs are telecom players that ride on top of existing networks, and or rent lease their required space from existing telecommunication companies.

The most successful MVNOs happen to be Virgin Mobile in the UK, however, a related launch in Singapore failed a couple of years ago.

A successful MVNO is frequently characterised by targeting niche markets with aggressive promotions accompanied by great customer service - something that is missed in Malaysia.

Growth, however, is a major challenge because if they grow, their requirement for bandwidth competes with the requirement for bandwidth from the incumbent. Thus, their roads will cross in the future, similar to what happened in the UK with Virgin Mobile, when they conflicted with their mothership, which, I think, was... can anyone help? I think it was a subsidiary of Deutsche Telekom, but I am currently lost for the name.

(By Asia Business Consulting)