Diagnostico FODA

Mobile telephone operators as service providers play a central role in the availability and integration of mobile telephony services into micro-business processes. A mobile telephone operator is typically any organization that has been licensed to provide mobile telephony services which include voice, SMS, MMS and other data services (see Fig.2.4 above) to the general public. Mobile telephone operators are mainly strategic investors or holdings apart from those that are state-owned. In many countries including Afghanistan and Cameroon, a strategic investor typically bids for a licence, then builds and operates a mobile telephone network for profit. Many strategic investors own networks in many countries, thanks to the liberalization of most telecommunication markets.

A very simple mobile telephone network is made up of hardware and software components. The hardware basically consists of network equipment which includes base stations (BTS), base station controllers (BSC) and mobile switching centres (MSC), and access devices such mobile phone handsets. The software includes application portals and content/data. Network operators generally source these components from a variety of manufacturers and ensure their inter-connectivity and inter-operability within their networks and across other networks. Different operators

7 _{Network externalities in a mobile telephone network, refers to the change in the benefit or surplus which a network} 

48 may work together to provide better and more affordable services to their customers. Typical areas of inter-operator collaboration include call termination, roaming and network resource sharing such as using the same antenna masts. Inter-operator collaboration can have far-reaching effects on the price and quality of services supplied to the public.

Telecommunications is a fast-moving industry, with technology and customer demands changing very rapidly. This suggests that the network operator has to make sense of all emerging technologies, understand customer demands, and offer competitive and innovative services in order to stay in business. In Section 2.1, the rapid evolution of mobile technology from 1G to 3.5G was discussed. Increasingly, operators have had to deal with many varied types of technology suppliers (Fig. 2.4) in order to satisfy increasingly complex customers and changing technology. While the good news for operators is that the changes are mostly fuelled by customer demand which is an indication of a market for the future services, making the right decision on which services to offer and technology upgrade paths to take is daunting. If an operator makes the right upgrade decisions, then services can be offered at lower prices which can stimulate more adoption and integration of services into business processes.

As network technology evolves from 2G to 3G and beyond, so do mobile business models. In 2G business models, operators own and supply all user services (voice and SMS) and, as such, they are the only customer-facing element in the mobile supply chain. In 3G models, many new content providers are directly in contact with user- customers who directly access and pay for services via online payment systems

49 independently of the network operator. The network operator is however paid for ensuring the connection between the provider and the user. In some cases, users access the content and the charges are included in their monthly phone bills or simply deducted from pre-pay mobile accounts, which is indicative of the fact that operators remain the main customer-facing element in the mobile supply chain despite the growing complexity in providing services.

The operator landscape has recently seen the emergence of Mobile Virtual Network Operators (MVNO). An MVNO is a company that does not own a network but resells mobile services under its brand name using the network of a licensed operator. MVNOs are basically commercial entities and are able to set their own tariffs independently from the operator whose network they are using. At the start of 2009, as many as 428 MVNOs were operating across the world, with 22 in the UK. Some

UK MVNOs are Virgin Mobile, Tesco Mobile, ASDA Mobile, BT Mobile and Fresh

Mobile. They use various licensed networks to sell mobile services. There are no MVNOs operating in Afghanistan or Cameroon. Advanced MVNOs each own their

own Home Location Register 8_{(HLR). MVNOs can also upgrade their systems by}

installing additional intelligent network infrastructure which can permit them to offer value-added services and also to have full control over the SIM cards, billing and customer care. The main advantage the host operator enjoys from the relationship is the broadening of their customer base.

8 _{Home Location Register (HLR) is a database of mobile subscriber information such as account information, account status,} 

features subscribed to by the user and user’s location.  It is a vital network equipment which can allow the virtual operator  to obtain capacity from multiple licensed operators, including 3G networks. It can permit the MVNO to support data  backups, fault tolerance, reliability and user authentication. 

50 In the mobile supply chain, the operator also interacts with other telecommunication operators such as the fixed line operators mainly for the purpose of call termination. Call termination agreements are part of a series of interconnection agreements which defines technical and commercial relationships between operators who naturally have to terminate some of their calls on the other’s network.