Vodafone CR Gives MVNO LTE for Next Generation Communications Services

Mobile Virtual Network Operators (MVNOs) don't have their own infrastructure, so they have to buy wholesale minutes from major operators and sell it under their own brand. If the major operators don't allow MVNOs to user their infrastructure, they will not be able to provide services. In many countries around the world, MVNOs are an essential part of the telecom industry, providing revenue for operators and giving customers more options. In the Czech Republic (CR), the MVNO market is in its infancy, with only a select number of companies getting access to the major operators in the country. Vodafone CR, one of the three major operators, is opening its LTE (News - Alert) network to a single MVNO called SAZKAmobil, which is allowing it to introduce 4G to all its data tariffs, without extra charges and start offering next generation communications services.

The Czech Republic is a small country, with a population of just 10.5 million. For major global operators, it doesn't have the numbers of France, Germany, the UK or other countries around the world. T-Mobile (News - Alert), O2 and Vodafone control 37.80, 31.30 and 24 percent of the market respectively with a subscription-base that is 134 percent of the population. But only 54 percent of the subscribers have wireless broadband access and the next generation communications services 4G LTE is capable of providing.

By making its LTE network available for SAZKAmobil, Vodafone (News - Alert) will increase its customer base for wireless broadband. Currently SAZKAmobil only has a little more than 215,000 subscribers, but all of its customers only have 4G SIM cards, which means they don't have to transition from 3G. This gives Vodafone access to customer that already have the phone and SIM with 4G LTE capability so they can receive next generation communications services.

The MVNO market in the Czech Republic was just opened in late 2012, and to date there are 71 virtual operators offering a range of mobile communications services. These MVNOs and their parent operators are now competing with the growth of fixed-line broadband market in the country, which is seeing rapid adoption and has some of the highest penetration rates in the EU.

The availability of the fixed broadband infrastructure is responsible for many online services. With a customer base that is already used to broadband, the transition to wireless broadband through 4G LTE is going to give SAZKAmobil to customers that will eventually migrate to mobile because of the convenience and availability it offers from virtually anywhere.