Axiom eyes MVNO operation
Dubai, May 12, 2009
Axiom Telecom, a leading regional mobile handset retailer, is in talks with GCC operators in an attempt to boost subscribers by becoming a mobile network virtual operator (MVNO).
Faisal Al Bannai, CEO of Axiom Telecom, has said that his company has developed 60 per cent of the setup and proposition required to launch an MVNO operation.
“The balance can be finalised based on the type of deal signed with the operator,” he added.
MVNOs are a novel retail concept in which sizeable global retail brands sell GSM cards in partnership with existing GSM operators.
Industry experts say that brand awareness, number of distribution points, handset capability, and content are the key pillars enabling a retailer to become a MVNO.
GSM operator interest in MVNOs is that they benefit from overnight, exponential expansion in the number of retail outlets at which consumers can purchase mobile subscriptions of various kinds.
“GCC mobile consumers want a few main things from their mobile experience: convenience, simplicity, and style,” said Al Bannai.
“And MVNOs bring enormous convenience and simplicity at no additional cost to customers.”
At present Axiom Telecom is exploring opportunities with GSM operators in the UAE, Saudi Arabia, and Kuwait, while India offers huge potential.
“We are currently exploring business models with different regional operators, and they are quite serious about the concept. Axiom Telecom is fully prepared to move quickly in any of the key markets which have been identified,” added Al Bannai.
Earlier this month Axiom Telecom confirmed that it is to open 135 new retail points in the Middle East and Southwest Asia, predominantly in India and Saudi Arabia, pushing its total number of retail points in the region past the 900 mark. – TradeArabia News Service
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