Demand for Telecom Regulation Advice Increases in Eastern Europe

Published on: 20th January 2006

Ovum Consulting says that it is intensifying its reach in the ICT sector in Central and Eastern Europe. This move is in response to the increasing demand for consulting services in the region, particularly in the areas of mobile, regulation and Fixed Mobile Convergence and Fixed Mobile Substitution. Ovum estimates that the CEE mobile market surpassed the 250 million subscriber mark in late 2005, providing total revenues of more than US$50 billion.

While some countries have already reached saturation point (seven have a penetration rate above 80%), others, such as Russia and the Ukraine, continue to record impressive growth rates.

"In many markets, operators want to learn from the experience of other markets in winning 3G licences and launching 3G products successfully," says Martin Vensky-Stalling, Director, Ovum Consulting. "In some markets, particularly Poland, Hungary and the Czech Republic, the MVNO opportunity is being evaluated by operators, potential entrants and fixed-only operators interested in FMC. First movers may have an advantage - once the first wholesale deals are struck, more entrants are likely".

MVNOs have to consider how to respond to this threat and opportunity. They must decide for example, whether to proactively develop a wholesale strategy and seek a complementary MVNO to reduce customer acquisition costs, reach new segments and fill capacity. Potential MVNOs have to consider the business case and the regulatory support they might be able to receive, such as mandated access. Branding, marketing and appropriate wholesale negotiations are critical.

"Our focus is on assisting clients to develop robust business cases and roadmaps to enable them to make sound business decisions and implement them successfully," says Roger Steele, Consulting Director. "We have worked with operators, regulators and MVNOs, and our customers truly value our experience when considering and launching MVNOs. We can reduce the complexity and support their senior management."

 

Tags: [ovum]  [mvno]  [ict]  [fixed mobile convergence] 

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