Portugal Outlines Plans for MVNOs

Portugal's telecoms regulator has decided to detail the regulatory framework for the activity of mobile virtual network operators (MVNO) in order to guarantee that the entry of MVNOs into the market. As the assessment of the market for call access and origination in public mobile telephone networks has not been yet concluded, and thus operators with significant market power in this market have not been yet identified at present mobile operators are not under any regulatory obligation to provide third parties with wholesale access to their networks.

Nevertheless, the regulatory framework in force covers in an appropriate manner the activity of MVNOs that arise following a desirable freedom to deal between entities who wish to pursue this activity and mobile operators who support their services over their own radio networks.

These are the basic MVNO models, and network operators and interested entities are free to establish the model that best adapts to their specific interests and business strategy.

All entities who wish to pursue an activity which could come under the concept of MVNO, must notify the regulatory authority of the commencement of such activity. For this purpose, it is not necessary for it to have established an agreement with a network operator holding rights of use for radio frequencies, allowing for the provision of retail mobile telephone services.

In their notification to the regulatory authority, MVNOs (whether the activity they pursue is deemed as a provision of a network and services or merely as a provision of services) must include a short description of the network or service they wish to provide and to notify an estimated date for starting the activity. Upon receipt of notification, ANACOM shall issue a declaration describing the rights in matters of access and interconnection and, where appropriate, of instalment of resources. This is the so-called general authorization scheme.

According to the need demonstrated, MVNOs may be granted rights of use for numbers.

Such numbers include mobile network identification numbers, subject to the following criteria: existence of a network requiring the identification of own mobile terminals or others (roaming); existence of a network or equipment that use protocols established in the scope of GSM/UMTS standards to render compatible and ensure the interoperability of services to the end-user.

MVNO are not subject to the payment of spectrum fees

Regardless of their type, MVNOs do not hold rights of use for frequencies for the provision of mobile telephone services; accordingly, they are not subject to the payment of fees for spectrum use. These fees must be paid by the mobile network operator, taking into account, in the current model, the element concerning base stations and the one concerning all mobile stations (terminal stations) supported on its network. In case the MNO hosts one or several MVNOs, and even if the latter are network operators, it shall calculate not only the terminal equipment engaged in its own network, but also the remaining terminal equipment involved in MVNO operations and which are supported on its network.

MVNOs may invoke the obligation to negotiate interconnection, and remaining mobile and fixed operators must ensure service interoperability under the law."

Posted to the site on 26th February 2007