MVNOs entry to slash mobile rates
Dubai, May 15, 2008
The cost of making mobile phone calls across the Middle East is expected to drop soon as Mobile Virtual Network Operators (MVNOs) are beginning to enter the region, a report said.
MVNOs want to take advantage of the $5 billion virtual mobile business opportunity in the Middle East as they are having a successful run in Europe, the US and parts of Asia, a Khaleej Times report said.
Jordan was the first country in the region to establish a legal framework for MVNOs while Saudi Arabia's 'i2' recently announced its operations. Dubai-based 'FRiENDi' Mobile is in talks with more than a dozen countries across the Middle East regarding investing in the service, said the report.
'FRiENDi' Mobile has big ambitions and will announce soon its first MVNO service.
MVNOs have no infrastructure but buy bulk time at a discounted rate from licensed mobile network operators and resell this with added services to customers. One of the better known MVNOs is Virgin Mobile, which operates in six countries, among them the UK, the US and South Africa. There are more than 300 MVNOs worldwide, with their number in some countries exceeding that of licensed operators.