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MVNO issues in Thailand - and how to solve them

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MVNO issues in Thailand highlights some of the regulatory issues in Thailand regarding MVNO.

Without some form of regulatory measures and changes as described in this presentation, Thailand’s telecoms market will remain an unleveled playing field, where competition and innovation of mobile services, and thereby the digital economy, may not evolve as it should - or at all.

The government has provided the platform for private industries to participate and form the final stages of Thailand 4.0 – however the current regulation from NBTC - or lack off, has not been able to follow suit but only concentrated on the existing silos in the market instead of getting all the wheels to spin.

Luckily, most of the issues evolves around issues created by NBTC itself i.e. home made quick fix paragraphs, lack of action, or lack of knowhow by the time MVNO was introduced, which demands less effort to solve.

This presentation is an extended version from the presentation given at the Engineering Thailand 4.0 event on the 17th November 2017

Publicada em: Tecnologia
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MVNO issues in Thailand - and how to solve them

  1. 1. ISSUES IN THAILAND …AND HOW TO SOLVE THEM ยุคของการเปลี่ยนแปลงในธุรกิจโทรคมนาคม งานวิศวกรรมแห่งชาติ 2560 PRESENTATED AT PRESENTATION BY ALLAN RASMUSSEN
  2. 2. THAILAND’S TELECOM MARKET – AN UNLEVEL PLAYING FIELD www.yozzo.com MOBILE OPERATORS PLAYING FIELD MVNO’S PLAYING FIELD Without some form of regulatory measures and changes as described in this presentation, Thailand’s telecoms market will remain an unleveled playing field, where competition and innovation of mobile services, and thereby the digital economy, may not evolve as it should - or at all. The government has provided the platform for private industries to participate and form the final stages of Thailand 4.0 – however the current regulation from NBTC - or lack off, has not been able to follow suit but only concentrated on the existing silos in the market instead of getting all the wheels to spin. Luckily, most of the issues evolves around issues created by NBTC itself i.e. home made quick fix paragraphs, lack of action, or lack of knowhow by the time MVNO was introduced, which demands less effort to solve.
  3. 3. MVNO’S IN THAILAND – WHY IT FAILED In 2009 five MVNO’s where given a license by the telecom regulator NBTC to operate as MVNO’s on the state enterprise telecom operator TOT AS OF NOVEMBER 2017 ONLY 1 MVNO IS LEFT i-Kool 3G (Loxley) UNLEVEL PLAYING FIELD - UNRESOLVED POOR PLANNING AND EXECUTION LEGACY SYSTEMS AND RED-TAPE INSUFFICIENT NETWORK CAPACITY AT LAUNCH INSUFFICIENT MVNO EXPERIENCE AND QUALITY POOR MVNO CONTRACTS AND REGULATION www.yozzo.com MVNO IN THAILAND HAVE FAILED BECAUSE OF THE FOLLOWING REASONS
  4. 4. THAILAND’S “SUPERBOARD” FAULTS THE REGULATOR NBTC FOR MVNO FAILURE www.yozzo.com In 2016, The Inspection and Evaluations Commission (also known as the “Superboard”) of the National Broadcasting and Telecommunications Commission (NBTC), failed the telecom regulator and concluded that: …NBTC should issues regulations for mobile virtual operators to support more of them in the Industry, which should benefit consumers.
  5. 5. WHAT HAS THE REGULATOR NBTC DONE ABOUT IT? www.yozzo.com noth•ingPronoun not anything; no single thing. Adjective having no prospect of progress; of no value
  6. 6. BUT CONTINUES TO SELL MVNO LICENSES 51COMPANIESHAVE OBTAINED A MVNO LICENSE IN THAILAND ONLY 9 HAVE LAUNCHED – 5 ARE STILL ALIVE www.yozzo.com MVNO LICENSES ISSUED IN THAILAND AS OF DECEMBER 2017
  7. 7. MVNOS, ARE AN INTEGRAL PART OF THE GLOBAL MOBILE LANDSCAPE Over the past 18 years, MVNOs have helped stimulate competition in the mobile market, launching innovative tariffs and services and attracting niche consumer segments at a lower cost than mobile network operators (MNOs). In Europe virtually every cable and fixed-line operator has a mobility strategy, largely based on MVNO • 1000+ INDEPENDENT MVNOS WORLDWIDE • MVNOS INCREASED 70% BETWEEN 2010 AND 2015 • 72 COUNTRIES HAVE MVNOS IN OPERATION • MVNOS ACCOUNT FOR 14% OF THE TOTAL EU MARKET • EUROPE IS HOME TO: 595 MVNOS, APAC: 137, US: 111 • 1 OUT OF 10 PEOPLE IN AUSTRALIA IS A MVNO CUSTOMER TODAY, MVNOS HAVE REACHED 214 MILLION USERS WORLDWIDE, AND IS ESTIMATED TO GROW TO 300 MILLION USERS AND A $70 BILLION VALUE IN 2020 Ovum predicts that nearly 24% of all new subscriber connections over the next five years will come from MVNO subscribers. Although the current enterprise market represents less than 10% of these connections now, they expect it triple to 30% By 2020, IDC predicts that 30% of the top 500 companies in Thailand will see the majority of their business depend on the ability to create digitally- enhanced products, services and experiences Overall connection growth for mobile phone service around the world was about 4.5% end of 2015. MVNO connections are growing at about 18% per annum 4 times faster than the average rate for the mobile industry. Source IDC Thailand With a predicted compound annual growth rate (CAGR) of over 10% in the forecast period to year 2020, the Asia Pacific region is home to the world’s fastest growing MVNO sector, even more than the highly competitive MVNO markets of Europe and North America. Grand View Research www.yozzo.com
  8. 8. …AND HAVE DELIVERED THE RATIONALE FOR THE INTRODUCTION OF MVNO, INCLUDE - BUT ARE NOT LIMITED TO:  Stimulate competition,  Efficient utilization of network resources,  Introduce new or better services aligned to lifestyle propositions currently unserved/underserved,  Promote investment opportunities for local and international businesses in the telecom market. Consequently, MVNOs are intended to support innovation, bridge digital divide, and contribute to the growth in the ICT sector to ensure the achievement of the broader industry and DIGITAL ECONOMY OBJECTIVES. THE CLEAR INTERNATIONAL EVIDENCE IS THAT MVNOs HAVE DELIVERED:  More consumer choice  Innovative pricing plans  Innovative products and services  innovation in, and better customer service www.yozzo.com
  9. 9. …meanwhile in Thailand www.yozzo.com
  10. 10. THAILAND’S TELECOM ECOSYSTEM MNO = MOBILE NETWORK OPERATOR MNO Is a Mobile Network Operator who owns its own network infrastructure and has licensed allocated spectrum. In Thailand the MNO’s are: AIS, CAT Telecom, DTAC, TOT and TRUE www.yozzo.com
  11. 11. MOBILE NETWORK OPERATORS OWN THE INFRASTRUCTURE www.yozzo.com
  12. 12. AND LICENSE THE SPECTRUM www.yozzo.com
  13. 13. FROM THE NATIONAL TELECOM REGULATOR (NBTC) NBTC www.yozzo.com
  14. 14. THE 900/1800/2100MHz SPECTRUM LICENSES STATES 10% OF THE CAPACITY MUST GO TO MVNO’S MVNO 10% www.yozzo.com
  15. 15. HOWEVER IN THAILAND ONLY CAT TELECOM AND TOT HOST MVNO’S MVNO STATE ENTERPRISE STATE ENTERPRISE www.yozzo.com
  16. 16. HOW MVNO’S CONNECT: MVNO’S CAN CONNECT TO MNO’S DIRECTLY MNO MVNO MVNO A MVNO does not own spectrum, instead it enters into an agreement with either a MNO or MVNA to obtain access to airtime at wholesale rates, and then sets its own retail price and service. An MVNO may invest in its own operational components or employ the services of a Mobile Virtual Network Enabler (MVNE) MVNO = MOBILE VIRTUAL NETWORK OPERATOR www.yozzo.com
  17. 17. MVNO’S CAN CONNECT TO MNO’S THROUGH A MVNA MNO MVNA MVNO MVNO A MVNA is an entity, who buys mobile airtime in bulk from the MNO, and then wholesale the airtime to MVNOs. The MVNOs retails the airtime to its end-users MVNA = MOBILE VIRTUAL NETWORK AGGREGATOR www.yozzo.com
  18. 18. MVNO’S CAN CONNECT TO MNO’S THROUGH A MVNE MNO MVNE MVNO MVNO Provides infrastructure and services to both the MNO and MVNOs, which enables MVNOs to offer their services on the MNOs network, while leaving the “telecom” enablement to the MVNE. The MVNE provides services, such as billing, business workflow, product setup, service delivery, customer care, fraud management, reporting, sale platforms, device management, etc. MVNE = MOBILE VIRTUAL NETWORK ENABLER www.yozzo.com
  19. 19. MVNO’S CAN CONNECT TO MNO’S THROUGH A MVNE/MVNA MNO MVNA/MVNE MVNO MVNO The MVNA/MVNE purchases airtime in bulk from the MNO, adds the operational telecom components on top, and then wholesales the airtime and service as a full turnkey solution to MVNOs. The MVNA/MVNE also offers additional value add to the MNVOs in terms of guidance during setup, launch and operation. MVNA + MVNE = MOBILE VIRTUAL NETWORK AGGREGATOR + ENABLER www.yozzo.com
  20. 20. PROBLEM #1 IN THAILAND THE MNO TRIANGLE www.yozzo.com
  21. 21. MYSTERIOUS CIRCUMSTANCES - THE BERMUDA TRIANGLE Florida Bermuda Puerto Rico North Atlantic Ocean THE NORTH ATLANTIC OCEAN HAS ITS BERMUDA TRIANGLE Where ships and airplanes has mysteriously gone missing www.yozzo.com
  22. 22. MYSTERIOUS CIRCUMSTANCES - THE MNO TRIANGLE IN THAILAND LIKEWISE IN THAILAND WE HAVE THE MNO TRIANGLE Where MVNOs for mysteriously reasons haven’t been able to launch for 5 years www.yozzo.com
  23. 23. DESPITE THE MVNO CRITERIA AND CAPACITY ON THE 2100MHz LICENSES Prior to Thailand’s 2100MHz 3G auction in 2012, the NBTC released the following Criteria and Procedure for the Spectrum. 16.5.1 The Licensee shall provide telecommunications network service with the minimum capacity of 10 percent of its networks to the MVNO who is not the Connected Person in the Shareholding Structure with any licensee when receiving such service request AIS 90% DTAC 90% TRUE 90% NBTC Notification | http://www.parliament.go.th/ewtcommittee/ewt/tele/ewt_dl_link.php?nid=144&filename=index www.yozzo.com
  24. 24. DESPITE THE MVNO CRITERIA AND CAPACITY ON THE 900MHz & 1800MHz LICENSES As with the 2100MHz spectrum, the NBTC has also added a MVNO clause in the terms for the 900MHz and 1800MHz licenses (2015/2016) (1) The Licensee shall comply with the Commission’s Notification Regarding Mobile Virtual Network Operator Service 2013. (2) The Licensee shall provide telecommunications network service at least 10 percent of its network’s capacity to MVNO(s) that is/are not the connected person(s) with any licensee under this Notification, upon receiving such service request. AIS 90% True 90% True 90% AWN (AIS) 90% 900MHz 900MHz 1800MHz 1800MHz PDF | NBTC 900MHz Criteria (English) | http://auction.nbtc.go.th/getattachment/HOME/900MHz_Criteria_Eng.pdf.aspx PDF | NBTC 1800MHz Criteria (English)| http://auction.nbtc.go.th/getattachment/HOME/1800MHz_Criteria_Eng.pdf.aspx www.yozzo.com
  25. 25. No MVNO’s have been able to launch on AIS, DTAC or TRUE despite the license terms saying the operators of 900, 1800 and 2100MHz have to provide at least 10% capacity to MVNO’s www.yozzo.com
  26. 26. THE MNO TRIANGLE SOLUTION www.yozzo.com
  27. 27. THE MNO TRIANGLE SOLUTION 1. The NBTC should publish a clear policy statement requiring the telecom network operators to provision MVNOs on their network. 2. The NBTC should exercise its regulatory mandate to monitor the market and the negotiations to ensure that mobile network operators conduct negotiations fairly and in good faith - and that the policy objectives of the mobile market are fulfilled. 3. The detailed terms and conditions of MVNO provisioning should first be left to the parties to negotiate on a purely commercial basis 4. It would be in the public interest for the NBTC to intervene, and assist the parties - or if necessary, settle and resolve in case a mobile network operator is acting in bad faith, engaging in any form of anticompetitive conduct, or if, after a reasonable period (1 months) of in-good-faith negotiations, a commercial agreement cannot be reached between the parties. 5. The NBTC should follow up on a monthly basis to see if there is a progress in on-boarding MVNOs, and take measures if not. In addition, and as a last resort only, if no progress is made - a regulatory mechanism allowing the NBTC to intervene, to:  Ensure fair and reasonable terms for access  Safeguard fair and non-discriminatory competitive behavior  Bring parties to the negotiating table at the earliest opportunity  Introduce and safeguard the principle of in-good-faith commercial negotiations. i.e., the mobile network operator shall enter into a wholesale agreement with the MVNO, within a period of 1 months from the date of issuing a Letter of Intent (LoI) or Memorandum of Understanding (MoU) and submit a copy of the same to the NBTC (licensor). NBTC would have the power to intervene in the agreement if deemed necessary by one of the parties. The Regulations/Directives/Orders of NBTC in this regard would be binding on the telecom network operators and the MVNO. www.yozzo.com
  28. 28. NO MVNO – NO LICENSE NBTC is planning an auction for one 850Mhz and three 1800MHz spectrum licenses in 2018. It would suit the regulator well to live up to its reason to exist, by facing the issue of un-used MVNO capacity among the three existing spectrum license holders. One suggestion would be to add to the auction terms and conditions, that in order to participate in the upcoming spectrum auction, an existing license holder, who has not yet lived up to the terms and conditions in its previous spectrum license regarding MVNO capacity, would have to launch at least one MVNO, on their networks in order to participate in the spectrum auctions. The mobile network operators should be given a maximum period of 60 days to present an MVNO proposal. www.yozzo.com The NBTC has been very active in making sure that terms and conditions, such as minimum roll out coverage, license payments, maximum retail pricing, etc. has been followed by the 900/1800/2100MHz auction winners, while zero attention - nor consequences has been given regarding the MVNO capacity.
  29. 29. PROBLEM #2 IN THAILAND NO FULL MVNO www.yozzo.com
  30. 30. NO FULL MVNO IN THAILAND = NO CONTROL OF THEIR OWN BUSINESS www.yozzo.com
  31. 31. TYPES OF MVNO’S AND OPERATING MODELS NETWORK APP. & SERVICES CUSTOMER ACTIVATION CUSTOMER BILLING CUSTOMER SERVICE MARKETING SIM & VOUCHER MANAGEMENT SALES & DISTRIBUTION HANDSET MANAGEMENT BRANDED RESELLER SERVICE PROVIDER ENHANCED MVNO FULL MVNO Functions carried out by MVNOMVNOFunctions Carried out by MNO MVNOMVNO MVNO MVNO MVNO MVNO MVNO MVNO MVNO MVNO MVNO MVNO MVNOMVNO MNO MNO MNO MNO MNO MNO MNO MNO MNO MVNO MNO MNO MVNO MVNO MNO MNO MVNOMVNO MVNO MVNO MVNO MNO = Mobile Network Operator MNO MNO MVNE MVNE MVNEMVNEMVNEMVNEMNO MVNEMVNE MVNE Functions carried out by MVNEMVNE MVNO = Mobile Virtual Network Operator MVNE = Mobile Virtual Network Enabler MNO MVNO types, e.g. branded reseller, thin, medium, or full MVNO’s, are defined by which of the operational components the MVNO manages, and which one the network operator – or MVNE manages. www.yozzo.com
  32. 32. FULL MVNO = CONTROL OF OWN BUSINESS AND FLEXIBILITY TO PROVIDE INNOVATIVE SERVICES A Full MVNO has complete control over its operation, data, SIMs, customers and services due to certain core network elements such as: • GMSC (Gateway Mobile Switching Centre) • HLR (Home Location Register) • SMSC (Short Message Service Centre), • MMSC (Multimedia Messaging Service) • GGSN (Gateway GPRS Support Node) Full MVNO’s can also have their own roaming and interconnect agreements with other MNOs. HLR/HSS SMSC GMSC VOICEMAIL MMSC GGSN www.yozzo.com
  33. 33. MVNO POSITIONING LOW HIGHPRICING SERVICEOFFERING ”No frills” MVNO’s MVNO’s based on convinience Traditional Mobile Operators MVNO’s based on value addition INNOVATIVE IoT/M2M MVNO’s As a FULL MVNO the MVNO can have control over services they can offer in the market, and thereby the flexibility to innovate and compete on new service offerings in the market www.yozzo.com
  34. 34. AS WELL AS TACKLING DIVERSE, URGENT AND SIMULTANEOUS DEMANDS ON A HOURLY BASIS  Travel & Leisure MVNO needs to urgently resolve customer billing disputes before start of Songkran holiday season tomorrow  Ethnic MVNO wants to launch mothers day promotions before competitor launches its promotions  OTT MVNO wants to launch zero rating service on videos from its own portfolio to compete in the market against HBO, Netflix  Bank MVNO wants to utilize bulk of sales-force tomorrow to visit its premium customers to make a one-day only offer for rate plan upgrades 1 2 4 6  Retail MVNO wants to provide extra bonus points in loyalty program to drive sales this weekend  Retail MVNO wants to access its user usage data) to better address the needs and wants of its own customers 35 MVNO MVNO MVNO MVNO MVNO MVNO www.yozzo.com
  35. 35. THAILAND vs. SINGAPORE 4 - 0 Let’s say Thailand wins 4-0 over Singapore in football, and the whole country is celebrating the victory on social media. The MVNOs also wants to join the celebrations by providing the customers with a 20% discount on all voice calls EXAMPLE www.yozzo.com
  36. 36. IN THAILAND TODAY WEEK 1 WEEK 3 MONTH ? MONTH ? Fax your request to the MNO Present your case at a meeting with the MNO Internal meeting at the MNO to approve or not Wait for result This is how it ”works” today in Thailand if MVNO’s want to introduce new promotions, service - or tackle issues www.yozzo.com
  37. 37. …Meanwhile Thailand will have lost to another country in both football and innovation www.yozzo.comEXAMPLE
  38. 38. NOT ALLOWING FULL MVNO KILLS INNOVATION AND CREATES AN UNLEVEL PLAYING FIELD LOW HIGHPRICING SERVICEOFFERING Traditional Mobile Operators INNOVATIVE www.yozzo.com The MVNOs will not be able to compete on neither services, pricing - or introducing new innovations to the market, thereby giving the traditional mobile network operators an unfair advantage, severely limiting innovation and competition in the market
  39. 39. THE SOLUTION www.yozzo.com • Allow Full MVNO’s (like in other markets), to level the playing field, foster innovation and competition for the benefit of the consumers
  40. 40. PROBLEM #3 IN THAILAND DOUBLE / TRIPLE LICENSE FEE www.yozzo.com
  41. 41. UNFAIR DOUBLE LICENSE FEE HURTING THE MVNO AND CONSUMERS OPERATOR MVNO License Fee Total 1.5% 1.50% License Fee 3.50% USO Fee Total 5% New Voice Call Cost THB 105 New Voice Call Cost THB 106,57 Voice Call Cost THB 100 The operator pays NBTC 1.50% of revenue in license fee + 3.50% of annual revenue in USO fee - Total 5% Example: The operator sells THB 100 worth of voice calling to the MVNO which is THB 100 + 5% fee = THB 105 The MVNO pays NBTC 1.5% of annual revenue in license fee. Example: The MVNO sells the now THB 105 worth of voice calling to customers. THB 105 + 1.5% fee = THB 106,57 ❶ ❷ TOTAL = 6.50% 2 x 1.5% License Fees (MNO+MVNO = 3% 1 x 3.5% USO Fee (MNO) = 3.5% REGULATOR Un-level playing field as the operator can sell directly to customers for just THB 105 vs. the MVNOs THB 106,57 MVNO As the host operator and MVNO each have to pay the license fees of annual revenue, the same mobile signal (voice/sms/data) ends up having double the tax, when it ends up at the MVNO and its customers. ❸ www.yozzo.com In 2009 the NBTC introduced Mobile Virtual Network Operator (MNVO) license along with a license fee scheme up to 1.5% of yearly revenue. However, the setup of the license fees causes the burden to be pushed to the MVNOs and consumers, as the NBTC is charging double fees on one ”signal”. + += =
  42. 42. UNFAIR TRIPLE LICENSE FEE HURTING THE MVNO AND MVNA OPERATOR MVNA MVNO MVNA License Fee Total 1.5% MVNO License Fee Total 1.5% 1.5% License Fee 3.5% USO Fee Total 5% New Voice Call Cost THB 105 New Voice Call Cost THB 106,57 New Voice Call Cost THB 108,17 Voice Call Cost THB 100 As the MNO, MVNA and MVNO each have to pay the license fee, the same mobile signal (voice/sms/data) ends up having triple tax, when it arrives at the MVNOs and the consumers The operator pays NBTC 1.5% of revenue in license fee + 3.5% of annual revenue in USO fee - Total 5% Example: The operator sells THB 100 worth of voice calling to the MVNA i.e. THB 100 + 5% fee = THB 105 The MVNA pays NBTC 1.5% of annual revenue in license fee Example: The MVNA resells the now THB 105 worth of voice calling to the MVNO. I.e. THB 1,05 + 1.5% fee = THB 106,57 The MVNO pays NBTC 1.5% of annual revenue in license fee Example: The MVNO sells the now THB 106,57 worth of voice calling to customers. I.e. THB 106,57 + 1.5% fee = THB 108,17 ❶ ❷ ❸ TOTAL = 8% 3 x 1.5% License Fees (MNO, MVNA, MVNO) = 4.5% 1 x 3.5% USO Fee (MNO) = 3.5% The operator can sell directly to customers for just THB 105 vs. the MVNOs THB 108,17 ❹ www.yozzo.com In 2009 the NBTC introduced Mobile Virtual Network Operator (MNVO) license along with a license fee scheme up to 1.5% of yearly revenue. However, the setup of the license fees causes the burden to be pushed to the MVNA, the MVNO and consumers, as the NBTC is charging triple fees on one ”signal”. + + += = = REGULATOR
  43. 43. MVNO’S MAKES ITS BUSINESS ON MARGINS MVNO VS. www.yozzo.com MVNO’s makes its business on the small margins between costs and sale price. They operate a lean and flexible setup where every satang counts. The unfair double, and triple taxation changes the timeline significantly for the MVNO to reach financial breakeven – if ever - given that the current fee structure setup not only adds costs, but also provides the mobile operators with an unfair pricing advantage
  44. 44. THE SOLUTION www.yozzo.com Let the MNO and MVNO (MVNA) split the 1.5% license fee like we do with VAT i.e. MNO 0.75% and MVNO 0.75% = 1.5%
  45. 45. PROBLEM #4 IN THAILAND BUREAU-CRACY KILLING INNOVATION www.yozzo.com
  46. 46. MVNO LICENSE APPLICATION IS IN-CORRECT AND NOT UP-TO-DATE TERMS AND APPLICATION FOR MVNO IN THAILAND IS ABOUT 15-YEARS TO OLD www.yozzo.com The application seems to be a copy and paste from old applications and various countries in early 2000’s In mid-2017 the NBTC added a MVNA license to the market without request for consulting or public hearing, ending up using the MVNO application for MVNA license as well.
  47. 47. LICENSE APPLICATION BUREAU-CRAZY NBTC OFFICER HAS TO UNDERSTAND & APPROVEFILL-OUT & HAND-IN THE APPLICATION NBTC has added their own little notice to the act regarding license approval. The NBTC officer can decline the application if he/she doesn't understand, either due to language, the service, network etc. www.yozzo.com
  48. 48. LICENSE APPLICATION BUREAU-CRAZY ONCE APPROVED, THE OFFICER HANDS THE APPLICATION TO NBTC’S SECRETARY-GENERAL TO SIGN BECAUSE THE OFFICER IS RESPONSIBLE www.yozzo.com
  49. 49. LICENSE APPLICATION BUREAU-CRAZY THE MVNO LICENSE IS GIVEN BASED ON THE APPROVED INFORMATION I.e. The information given and approved is part of the license – License valid for 5-years www.yozzo.com
  50. 50. LICENSE APPLICATION BUREAU-CRAZY HOWEVER… ? The NBTC officer will not uderstand new innovative service from the MVNO and decline it because he/she is responsible, and it does not fit the boxes. Therfore all MVNOs are the same in Thailand - even MVNAs have to use the MVNO application form which makes no sense www.yozzo.com
  51. 51. BUREAU-CRACY KILLS INNOVATION AND OPENS FOR CORRUPTION The officer becomes a single gatekeeper, which opens for corruption The setup opens a ”backdoor virus” for further corruption. Because… The MVNO license is valid for 5- years and consist of the information provided in the application. That information is however outdated because it has to fit the old standard and knowhow from the officer. Once the MVNO launch in the real world with technology and interfaces according to updated standards the regulator can come back at anytime and say the MVNO is not operating accoding to the license (information provided in the license) and demand they stop operation – or solve it with a brown envelope. www.yozzo.com
  52. 52. GETTING A LICENSE WITHOUT AN AGREEMENT Thailand is among few, if not the only country in the world, where you can get a MVNO license without some sort of agreement (MoU) with a mobile operator (or MVNA/MVNE) www.yozzo.com
  53. 53. GETTING A LICENSE WITHOUT AN AGREEMENT – HOW? MVNO LICENSE IS GIVEN BASED ON THE APPLICATION INFORMATION FILL-OUT & HAND-IN THE APPLICATION HOW? www.yozzo.com
  54. 54. GETTING A LICENSE WITHOUT AN AGREEMENT – HOW? Question: How does a MVNO without a host operator agreement fill out 9,10, 11, 12? Answer: They fill in ALL operators as example and use a network diagram from the 90’s Who would buy equipment BEFORE having an MNO agreement AND a license? www.yozzo.com
  55. 55. THE SOLUTION www.yozzo.com • Update the license application to the present and amend it from time to time. • Drop the added clause that the officer has to understand, approve and be responsible. • There is no reason to provide a license prior to an agreement with a MNO/MVNA/MVNE. • Introduce a real MVNA license application = do not use the MVNO application it’s not the same. BUT BETTER YET… • Drop the need for MVNA/MVNO application/license altogether in-line with other countries who no longer issues MVNO licenses. Doing so would make sense, as most of the issues releated to MVNO in Thailand, as discussed in this presentation would need an update or be removed. We are aware that NBTC is very keen on licenses in order to collect fees, and we therefor suggest a solution, where NBTC could maintain a very simple MVNO and MVNA license scheme, purely for the sake of collecting its license fees.
  56. 56. Presentation by Yozzo Co.,Ltd.  www.yozzo.com  March 2016 DISCLAIMER Some statements made in this material are forward-looking statements with the relevant assumptions, which are subject to various risks and uncertainties. These include statements with respect to corporate plans, strategies and beliefs and other statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “anticipate”, “intend”, “estimate”, “continue” “plan” or other similar words. The statements are based on our assumptions and beliefs in light of the information currently available to us. These assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Please note that the company and executives/staff do not control and cannot guarantee the relevance, timeliness, or accuracy of these statements. Copyright © 2017 Yozzo Co.,Ltd. All Rights Reserved.

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