FRIENDI HOOKS UP 100,000 OMAN SUBSCRIBERS

Having obtained a mobile virtual network operator (MVNO) licence in April, Friendi has already signed more than 100,000 subscribers, spurring regional interest in the technology, analysts said.

MVNO operators generally purchase voice and text packages on wholesale rates from an existing operator and then resell bundled services.



The model is common in saturated markets in North America and Europe, but is only starting to catch on in the Middle East with firms such as Reena, Kalaam Telecom and i2 Mobile starting operations in the past year.

“When a new operator starts, there’s a lot of time used to iron out network problems to reach a certain level of quality. Since we don’t have to worry about that, we can concentrate on focusing on getting a better customer experience, pricing and distribution,” said Mikkel Vinter, the chief executive and founder of Friendi.

Although Mr Vinter declined to comment on profit margins, MVNOs typically yield margins for earnings before interest, taxes, depreciation and amortisation of between 10 to 15 per cent, less than the 30 to 50 per cent range for traditional telecoms.

 

 

Source: http://www.thenational.ae/apps/pbcs.dll/article?AID=/20091102/BUSINESS/7...