16th APDC Congress – Vodafone believes that MVNOs will not have more than 6 to 7% of the market (updated)

COLLAB distinguished with the APDC / Siemens Innovation Award

Considering that the entry of MVNOs is a disruptive factor for the mobile communications market, António Carrapatoso advanced today at the APDC Congress that these virtual mobile operators will not have more than 6 to 7 percent of the market in four years. However, the chairman of Vodafone argues that the introduction of MVNOs in the Portuguese market should happen through commercial agreements and not by regulatory imposition.

Clarifying that Vodafone is favorable to the entry of virtual mobile operators, António Carrapatoso explains that his company is already finalizing a commercial agreement that should be concluded in the first quarter of 2007.

The president of Vodafone briefly outlined the experience of introducing MVNOs in various markets, stressing once again that the entry of MVNOs does not immediately imply a drop in prices and that this fact depends on the percentage of prepaid at the date of entry and on the existence operations low cost.

His forecast is that opening the market to MVNOs does not allow these companies to gain more than 6 to 7 percent of the market in four years, which in terms of revenue is expected to be around 3 to 4 percent.

António Carrapatoso argues, however, that rules for entering the market should be established for virtual operators, which should not go through an access imposed by the regulator, which may lead to the creation of an artificial number of players.

Writing Note:[18:21}[18:21} The news has been updated with more information.

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