T2T Communications – MVNO efforts to "advance services & solutions" :: The Com

31 Oct 2010 by admin in Israel, MVNO / No Comments

Seed Company T2T Communications applied for MVNO license in order to meet the unique needs of consumers and Early Adopters, and below we have an Inteview with Ariel CEO of T2T

“We will not even market the Prepaid Service. I believe that if the MVNO wants to succeed in Israel, its executives should reach the telecom world. Not only the technical side of telecommunications, but also the sides of the marketing and understanding customers’ needs. We believe that 3% -2.5% population are/will be- Early Adopters, who understand the cellular technologies and want high-quality instruments for advanced services, “declares Ariel Holidays,CEO and one of the founding three partners who established Seed Company; T2T Communications, which seeks to break through the cellular world through an MVNO solution.

” The Prepaid Market need a set of real-time solutions/services to give an indication of what state is the customer’s consumption at any given moment/second. This requires matching different types of instruments, most of them quite inferior, when dealing with customer loyalty. We set ourselves a goal for the market segment; currently includes about 25% holders phones in Israel, as those who buy the wireless devices/handsets. Those customers who purchase their handsets overseas import them to Israel, or purchase them from independent suppliers like GoMobile. This growing market, increase every year as the market-wise consumer knows exactly what he/she wants. These customers know the real price of cellular handsets, cellular providers charge’s and know it to be 2.5x higher than the real price, with “an unreasonable profit. ” margin.

The Com held an interview with Ariel holidays, after they filed the company’s request to the Ministry of Communications (Eighth Ministry) for an MVNO license which was approved today. T2T Communications was established by three partners: Hagai Ariel, a technological experienced with knowledge of MVNO Services and Solutions, Shay Ahachshuar, network owner and importer of advanced cellular phones - GoMobile , and Hanan Assayag, financial investor and a former investor and director at Anemone , which was recently purchased by “J. One1. Attorney Avi philosopher represents the company in all its moves.

Question: What is the current state, or the company T2T Communications needs to be/do to be an MVNO?

Hagai Ariel: “Currently we are working on the engineering plan for the company. Our strategy is to deploy a IP switch and use the translation of SS7 to IP and use MVNE suppliers. My experience shows that cost savings can be established, if in doubt about the MVNO model, we will use the MVNE solution. But, using an MVNE solution, one loses the operational flexibility and control operating capabilities. We want the vendors capabilities – i.e. an MVNE solution which will alow us to transport space, layer to layer. We have examined a few switches, which will suit us, at the end of the engineering process/planning we will submit the technical solution to the Ministry of Communications, which should be submitted by mid next year. Simultaneously, we will analyse the target population for market segmentation. In addition, we will talk with people and encourage / recruit industry leaders to join us later on, during our operational phase. We plan to establish a company of 20 to 30 people at the most. “

Question: How did you find this field?

Answer: “I have many years of experience in establishing and operating in the Teleco arena, mainly in the United States and Mexico specialising in VoIP systems, including the establishment and operation of the MVNO. I developed and worked with a communications services in Mexico and the Philippines, the United States, and an MVNO partner which eventually became an MVNE too. In addition, I specialized in selling and operating immigrants SIM SS7 on IP systems. In fact I have been doing it since 1996. I returned to Israel in 2003 – and continued to engage in these areas of operation for the MVNO firms in the U.S. and Mexico. In 2004 I came met Shay Ahachshuar, when I purchased my first cell phone in Israel, and saw that I had a common language with him. In April this year we began formalise, and build our idea and plan to become an MVNO company in Israel. We analyzed the model, and the reasonable investment in infrastructure and systems operations, to be calculated at roughly less than – 5 million US$. “

Question: What distinguishes you from other players in the Israeli MVNO MARKET?

Answer: “We already know our target population. These people, for example, purchase advanced cellular handsets from abroad, and they are looking to get full bouquet of services, for fair prices and without being handcuffed to the cellular provider. Some at least +/- 100 thousand consumers, import personal devices every year. These people are the most sophisticated customers in the market. In addition, there are several hundreds of thousands who buy imported hardware solutions via local stores. These people need services that fit into their needs and are primarily consuming Data Messaging services (SMS/MMS). Cellular Operators in Israel, are unable to persuade them with colorful advertisements. Our target is this population, and we calculate this to be roughly 250 thousand people or more.

We will offer this population, besides freedom of choice and fair and transparent prices , the ability to select the services they need. These are not people who need to browse WAP sites, as imposed on customers’ browsing paths via Cell Providers in the market today. They do not want to wander in the walled garden scenarios by the MNO provider. Customers have nothing to do in these walled gardens.Transparency, fairness and locking customers are the most important thing to them, and that’s where we see a potential for us to offer a USP. We will offer packages that are linear, low pricing, from the start of marketing POS. Customers can see clearly what the final price will be, and how to build their own account, through a personal portal, add or download capabilities and Bolt On services at will, at any time without limitation. “

Question: What ability, and the interconnect fees have as an effect on the profitable of the company?

Answer: “If we analyze the operating expenditure, OPEX, of an existing mobile operator, the Gross Margins indicates that its interconnection fees gave them the ability to play with prices within the network. When, if the cellular provider has at least 40% internal traffic, you can set different prices for different populations, with mutual subsidies without risk of losing them. high connectivity fees are an incentive for inefficiency and ‘games’ by the cellular providers.

We estimate that if the interconnect fees will be about 90-10 units per minute, will be in ‘ambiguity’ about the economic viability of the MVNO. From our perspective, we believe, as we turn customers into paying hundreds of Shekels per month for each mobile device they use, we can be profitable even with relatively few customers.

We will not sell appliances, just to support those who come to us. Client’s can reach us with any device, whether purchased through GoMobile, or anywhere. We will provide a suitable SIM which can be supported by all. Acquisition devices for customers will be expensive. We will service both markets, SIM Only, and also to the population that likes to buy the wireless handsets/devices, and determine what they will run on their device. These are the people who hate being forced to surfing walled gardens, through the mobile provider’s WAP Service. Give them value added services, Now, which we are in development, with positioning quality of our service level will be the game changers”

Question: How important is Data to your customers?

Answer: “The market prices of the cellular service is in a frenzy over Data and has not yet stabilized. Currently, there is no reference to the monetary requirements to provide MVNO Data Solutions [Note: Reference - the proposed component Arrangements in the Communications Law over Data, has not been clarifies. It will be, as suggested by law, an interconnection price , for each MB. For example: if the price of interconnection will be 0.10NIS per minute, the price of the Data will be 0.10NIS per Mega -: Unlimited Price- Unlimited, will give a significant advantage to mobile operators with their MVNO companies, each paying per MB. So there are no shortcuts to the size, in leading the surfing package with upto and over 1 GB. Cost s could be much more per month in question to the MVNO companies, which will 'kill' all the business model's for MVNO Based Data Providers].

It is unclear whether Data acquisition will be open to negotiations between the MVNO providers and the cellular operators. Currently, Data is the ‘stepchild’ of the Ministry of Communications, who could not produce reasonable pricing in this area. Hearing interconnection fees prices have only reference to call rates per minutes and SMS, but Data was excluded. Our Target customers, are fundamentally built of a reasonable price for Data as the most important primary consideration in making there decision. “

Question: What is your future development directions?

Hagai Ariel: “We would rather have our own communications equipment to be located at sites of various cellular providers. It’s the most logical and efficient solution. But, probably they will bar or not allows us to operate this way in Israel. In the U.S. and many other countries, it is quite acceptable. The MVNO provider rents space on the cellular provider hosting solution. In Israel, this area is still unclear at the moment and it seems hopeless. Taking this into consideration, we will aim to provide quality services to a service level above the accepted level of current Israeli cellular providers. This is not an easy task in Israel. I believe that it will take at least a year before we see MVNO’s solutions taking an effect. “

Translation Tools – Google, re-edit by the Editor of PrepaidMVNO

Written by the Com, see original POST (in Hebrew)

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