Saying No to MVNO

The hype might dictate that a mobile offering is de rigueur for every telco but one prominent fixed line provider says it’s not interested in doing a Mobile Virtual Network Operator (MVNO) deal.WorldxChange director Paul Clarkin says the current offers by Vodafone and Telecom (the latter will open its XT Network to MVNO operators this year) are thinly disguised reseller deals which provide the illusion of competition in the mobile market.“We’re not interested in that. All it is is a virtual reseller. It gives the illusion that the larger telcos have got competition,” Clarkin says.He's says the current MVNO arrangements are a wholesale arrangement in which "you're just paying the service provider to get your brand on their stuff."

“I’ve got no interest in being a virtual network operator. I’m happy just to buy airtime off them and control the services. I’m not interested in simply reselling someone else’s product.”Clarkin doesn’t believe a mobile offering would stop fixed line customers from churning. WorldxChange has over 100,000 subscribers and is one of the few tier two providers not to offer a mobile service to its residential and corporate customers. Most of its competitors have opted for MVNO agreements with Vodafone.Compass and CallPlus/Slingshot are now MVNO operators on Vodafone’s network. TelstraClear announced last year it would be switching its MVNO arrangements from Telecom to Vodafone. Orcon has yet to activate its MVNO agreement with Vodafone but has indicated it intends to launch services soon, surveying its customers late last year on a potential mobile offering.