Mvno

COMPETITIVE ADVANTAGE FOR MVNOs
A Solutions Framework from Convergys and PwC Consulting
February 2002
COMPETITIVE ADVANTAGE FOR MVNOs A Solutions Framework from Convergys and PwC Consulting
ABSTRACT
Mobile Virtual Network Operators (MVNOs), are facing a challenging environment to establish a
foothold in the mobile marketplace. However, the future appears more promising as they impress
more mobile network operators (MNOs) with their capabilities to create new marketing channels to
reach new customer groups, reduce cost of subscriber acquisition, get closer to the customer and
support MNOs’ growth plans. Since this is an emerging market, the business models and success
factors are still being crystallised; however, we feel that billing and customer relationship management
solutions will be the key to MVNOs’ revenue success in the highly competitive mobile market.
This paper discusses how Convergys’ MVNO solutions’ offering substantially increases an MVNO’s
competitive position in a rapidly expanding marketplace. These solutions can meet MVNOs’ current
needs while providing a roadmap for tomorrow’s opportunities. Convergys is the leading company in
the world offering competitive individual solutions for any MVNO’s billing and customer care needs.
PwC Consulting’s experience in business process re-engineering and technology integration
complements Convergys’ solutions offering. PwC Consulting is one of the world's largest business
transformation solutions providers with a deep global footprint and a broad local reach in an industry
where few have significant presence outside their home market.
Throughout this paper, we will present several examples of how Convergys and PwC Consulting are
currently supporting MVNOs as they establish and grow their unique value proposition.
AUTHOR
Rick Findlay, Convergys, Corporate Director, Wireless Industry Solutions
Chris Merrick, Convergys, EMEA Market Strategy Manager
Mark Gregory, PwC Consulting, Partner
Des Smith, PwC Consulting, Director
PwC CONSULTING CONVERGYS CORPORATION

1 EMBANKMENT PLACE 201 E FOURTH STREET
LONDON WC2N 6RH, UK CINCINNATI, OHIO 45201 USA
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© 2002 CONVERGYS CORP/PwC CONSULTING 1 www.convergys.com www.pwcconsulting.com

TABLE OF CONTENTS
ABSTRACT ........................................................................................... 1
AUTHORS............................................................................................. 1
TABLE OF CONTENTS.......................................................................... 2
INTRODUCTION .................................................................................. 3
CURRENT MARKET CONDITIONS ....................................................... 3
MVNO MARKET PLAYERS ................................................................... 6
MVNO OPERATING MODELS .............................................................. 7
MNO SUPPORT INFRASTRUCTURE FOR MVNOS ............................12
MVNO CHALLENGES .........................................................................13
MVNO SOLUTIONS............................................................................14
HOW CONVERGYS AND PwC CONSULTING SOLVE MVNOS’ CHALLENGES
............................................................................................................17
CONCLUSION ....................................................................................20
CONTACT INFORMATION FOR PwC CONSULTING .........................21
CONTACT INFORMATION FOR CONVERGYS...................................22

INTRODUCTION
Mobile Virtual Network Operators (MVNOs) will play an increasingly important and growing role as
2.5G matures and 3G is introduced, making mobile markets become more data centric. This increased
industry complexity will create opportunities for competitive entry. We believe that the transformation
initiated by mobile data can be leveraged by MVNOs’ core competencies of retail branding to develop
new mobile applications creating new revenue streams.
While no two MVNOs are exactly the same, they can be grouped into different operating models that
reflect their operations and business strategies. First, we expect consumer-focused “brand” MVNO
activity to lead the market, driven by strong brands and existing customer bases. Brand MVNOs will
probably be centered on the following areas: Media & Entertainment, Financial Services, Retail and
Automotive. Second, existing wireline, cable and mobile communications companies will use the
MVNO model to enter markets where they have no license or to add new services to their existing
operations. Third, we also envisage the emergence of Enterprise MVNOs focusing on corporate
applications.
Convergys and PwC Consulting, in this paper, will together explore the major issues and challenges
with respect to MVNOs’ operations. Convergys and PwC Consulting can support the MVNO market
with a combination of world-class products, services and processes designed to ensure the competitive
advantage for MVNOs. Convergys’ modular product-line supports the creation and addition of specific
components to a solution, ranging from a single application module to a full end-to-end solution. PwC
Consulting’s MVNO expertise in supporting product definition and pricing strategies, combined with
rapid implementations leveraging pre-integrated solution, process and design templates, is designed to
help MVNOs speedily obtain a revenue stream.
CURRENT MARKET CONDITIONS

Market Drivers
There are a number of market drivers that have created an environment that supports the growth of
MVNOs.
• Competitive Markets can encourage some MNOs to look for additional alternative and
complementary marketing channels to generate new revenue streams that MVNOs can provide.
This is especially evident with some MNOs with lower market share. Partnering with MVNOs can
offer a new route to cover niche markets where the MVNO has a deeper or better established
customer relationship. In this case, MNOs will not feel threatened by partnering with an MVNO
and can benefit from the innovation and creativity that MVNOs can provide in the market.
• Growing “mobile population” provides opportunities for new players. Non-telecom companies
could see the attractiveness of adding mobility to complement their traditional products and
services to capture a piece of this wireless subscriber growth. Sainsbury, a UK supermarket chain,
created its “One” mobile service in order to expand the breadth of its consumer service offerings.
• Mobile-fixed integration offers traditional operators in wireline, cable and utilities the ability to
exploit their existing infrastructure and customer relationships by adding innovative mobile
services to their current product and service portfolios. These bundled integrated solutions result

in the delivery of a full range of telecom services. For CONV ERGY S IN

example, UK operators Colt and Energis have added ACTION
mobile services to their existing service portfolios, and
Deutsche Telekom is considering using the MVNO
model as a way to provide 3G services in markets Styling themselves as the "mobile
where they do not currently hold licenses. operator for machines", Wireless
Maingate leases GSM network capacity
• Emergence of Mobile Enterprise Applications has led from Swedish MNO, Telia, to allow remote
to the creation of Enterprise MVNOs to address more equipment, such as motor vehicles,
specialised needs. An example is in machine-to- vending machines, utility meters, lifts and
machine (M2M) communications where mobile even security systems to exchange M2M
communications can be used in the areas of telemetry or stock-level data with central
monitoring and controlling machines. Although the systems. Maingate's services allow
customers to take advantage of the
customers are corporations, the subscribers in effect
frequent advances in communications
are machines. This, also, provokes a totally different technology without continually
way of looking at penetration and lets an MVNO onto upgrading their own hardware and
a network without being a threat in terms of software.
cannibalising an MNO’s existing customer base.
Maingate’s billing and administration
• Reduction of subscriber acquisition cost has become a software must, therefore, support the
major driver for MNOs. While MNOs may be skilled rapid introduction of new and improved
at network engineering, the industry is experiencing a services. To this end, Wireless Maingate
large volume of churn. MNOs frequently spend selected Convergys’ Geneva™ rating and
between US$100-200 in marketing, advertising and billing module. This approach leaves
Wireless Maingate confident that it can
handset subsidy costs to acquire an average retail
focus on the delivery of innovative new
subscriber. By engaging MVNOs as an alternate retail technology to their customers and bill
distribution channel, MNOs can avoid the frustration them. "One of the main reasons for
of large acquisition costs and churn. In many cases, choosing Geneva was that its event-based
MVNOs can become the marketing and retail arm of philosophy would give us complete
the MNO and can more effectively market to certain flexibility in the future to bill for new
segments due to their better understanding of services in whatever way we wish.”
subscriber needs.
- Joacim Ramvik, Billing Manager,
• The cost to acquire 3G spectrum and associated Wireless Maingate.
network infrastructure has become immense. To
support this, MNOs have assumed high levels of debt that will force them to find more creative
ways to raise cash as soon as possible. One of the ways to increase revenues and return on an
MNO’s 3G investment will be the use of network resale to increase traffic on the MNO’s network.
MVNOs can also assist MNOs in optimising network utilisation by helping them equalise traffic
over peak and non-peak periods and to offset technology migration costs, and provide the means to
pay for provisioning and maintaining 3G customers.
Key Success Factors
• A major factor supporting the long-term success of the MVNO-MNO relationship will be the
degree to which the MVNO’s service offerings will be complementary to the MNO’s. If the
MVNO’s brand is well known and differentiated from the host MNO’s own identity, then the host
may be able to increase its market coverage and share. The MVNO can provide more value to the

host through its core competencies, such as the PwC CONSULTING

experience and success in identifying customer IN ACTION
trends, targeting strategies, PR and marketing
expertise, ready-made retail distribution
networks and online channels to reach new PwC Consulting was selected by an early
customers at lower cost. MVNO to develop a next generation
mobile mediation, billing and payment
management strategy. PwC Consulting
• Strong MVNOs will also develop where their
identified strategic options and made
non-mobile products and services can be recommendations on the target solutions
leveraged with the addition of mobile required. The client also asked PwC
functionality. MVNOs with established non- Consulting to develop a mobile
communications consumer brands may target technology roadmap and map this to
end users in niche demographics and specifically their product roadmap for future M-
tailor their services to fit the “lifestyle” of their Business services in areas such as
targeted users. For example, online financial Advanced Communication, M-Commerce
service companies, supermarket chains and and Infotainment. PwC Consulting has
others can offer widely used products and also been selected to lead the systems
implementation for this leading MVNO's
services along with discounted airtime.
overseas expansion.
• Successful MVNOs can provide a net increase to
the number of mobile subscribers for an MNO, assuming that a constructive, cooperative MVNO-
MNO relationship has been developed. Such relationships can be enhanced with operating
agreements that are commercially negotiated. Virgin and Sainsbury are good examples of where
MVNOs have built win/win relationships with their respective host MNO to the point where there
is an incentive for the host to see that the MVNO succeeds.
• The creation of a competitor is arguably justified where the selling power of the MVNO name can
be used to increase the overall number of customers, total minutes and bytes on the host MNO’s
network by attracting new customers that the MNO would not have been likely to attract or by
churning customers away from the host MNO’s competitors.
• Another core competency of most MVNOs that will contribute to their success will be their high
levels of customer service, personalised attention and individually relevant offerings that can
enhance customer relationships and, hopefully, help lessen the MNO’s churn rates.
• Two final factors that will have a major impact on the MVNO’s operational efficiency and
profitability will be the cost of non-core infrastructure (e.g. handsets, SIM cards, value-added
platforms, databases and management systems) and the cost of airtime over the MNO’s network.
• To succeed in the highly competitive marketplace, MVNOs will require next-generation billing
systems that are built on a new architecture, which can support new network elements, content
services, partner settlements and greater volume and complexity of CDRs.

MVNO MARKET PLAYERS

The term MVNO has become so widely used that it refers to any company that provides mobile
services under its own brand name even though it does not hold a license. MVNOs can include the
following types of players:
• Pan-European 3G virtual network operator: These are traditional or new network operators that
want to expand in the mobile market. They have chosen not to invest in 3G licenses themselves,
but have become MVNOs. Telia Mobile, based in Sweden, aims to lease mobile network capacity
from 3G operators in Germany, France, UK, Italy and Spain, linking the leased networks together
with its mobile networks in the Nordic countries. For the MNOs who have acquired a 3G license, it
is advantageous to partially lease their networks to MVNOs, as MNOs are focused on filling their
networks with traffic to recoup some of their 3G investments.
• Companies with strong trademark: “Brand” MVNOs are new entrants to the mobile market who
offer customised mobile service to their customers. The most well known example is Virgin
Mobile, which has recently initiated an international expansion into Australia, Singapore and the
US. Similarly, Wireless Car (Sweden) offers tailor-made mobile services for automobiles with the
first service to be launched for owners of Volvos. Banks, supermarkets and department stores,
such as ICA and IKEA (Sweden) are other examples. Using Europolitan’s network, ICA will offer
mobile phone and wireless Internet services to its three million customers who have an ICA
customer card.
• Existing fixed Telco operators without a mobile subsidiary: Fixed operators would take the
opportunity to build new revenue streams and offer convergent services via “mobile-fixed
integration” by capitalising on the existing infrastructure of MNOs. For example, Energis, which
offers a portfolio of fixed and mobile services, data networks, and Internet and e-business services,
uses Orange UK’s network.
• MVNO host or warehouse model or bit pipe provider: They are also known as an MVNE (Mobile
Virtual Network Enabler). MVNEs are expected to emerge as a “carrier’s carrier”, by offering
outsourced services for the companies who wish to become an MVNO without having to run the
network themselves.
• Enterprise MVNOs: Enterprise MVNOs, such as Wireless Maingate discussed earlier, should
grow in popularity through the emergence of Mobile Enterprise Applications.

MVNO OPERATING MODELS
Almost all MVNOs operate a little differently resulting in some diversity in business models. These
different operating models are likely to continue as we move into 2.5G and 3G. MVNOs exist on a
spectrum from one which has its own network infrastructure to an MVNO who only re-sells airtime
under its own brand. For example, some MVNOs:
• May own a switch and other network elements
• May differentiate on services and platforms
• Have a close relationship with an MNO through a joint venture, which will facilitate longer-
term success as the MNO has a vested interest in the MVNO’s business
• May seek to become MVNOs to facilitate their existing business.
No two MVNOs will be alike, but the most common models can be grouped into three different
categories, which Convergys defines as:
• Non-Facility-Based MVNOs
• Hybrid MVNOs
• Facility-Based MVNOs.
Using the Telecommunications Management Network1 (TMN) model, we have presented the various
business, service, network and element management functions that would be applicable to the MVNO
models shown below.
1
Telecommunications Management Network (TMN) is a set of standards, originally presented by the International
Telecommunications Union (ITU) and further developed by the TeleManagement Forum, that provides architectures, protocols
and interfaces for building standardised OSS applications and infrastructure.

Non-Facility-Based (Service Provider, Enhanced Reseller)
Non-Facility-Based MVNO
Business Marketing/Value- Sales & Branding Pricing Packaging

Management Added Services Distribution
Service Customer Care Billing & Provisioning Mediation SIM Cards Roaming &
Management Rating * Interconnect
Network Switching Gateways Web Server Mobile
Management Network
Code (MNC)
Element
Management
Figure 1: Non-Facility-Based Operations

TMN Layer
* Convergys Application
Module
Required Function
MNO Provided
Function
Many MVNOs start out as a non-facility–based MVNO, and they might rely almost totally on the host
MNO’s facilities. Calls to and from its subscribers would be treated as if they were calls to the host’s
own customers. All verification operations would be carried out by the host, most likely by using a
partitioned Home Location Register (HLR), who would have to gear its databases to receive, process
and supply data concerning the MVNO’s customers as well as its own. MVNOs’ retail offering may
scarcely differ from those available from the host. In fact, some MVNOs may only repackage the host’s
services, and all of them will use the host’s SIM cards. Packaging, branding and pricing of the service
and some control of the customer would rest with the MVNO who would make minimal investment,
possibly confining facilities to retailing/distribution, customer service and billing. In some cases, these
MVNOs will sell subscriptions for more than one MNO.
For these MVNOs, a Convergys solution might be its convergent billing and rating module, Geneva.

Hybrid (Enhanced Service Providers)
Hybrid MVNO

Service Customer Care Billing & Provisioning* Mediation* SIM Cards Roaming &
Management Rating* Interconnect
Management Network
Code (MNC)
Element
Management
Figure 2: Hybrid Operations

TMN Layer Convergys Application
* Module
Required Function Optional Function
MNO Provided
Function
Today in Europe there appears to be more MVNOs operating CONV ERGY S IN

as a hybrid MVNO. A hybrid will be different from the facility-
based MVNO discussed below only to the extent that they do
ACTION
not own switching infrastructure, and, in some cases, their
own SIM cards. Norway’s Sense Communications, which Robust mediation capabilities enable MVNOs
provides mobile services to customers in Norway and Sweden, to interact in a real-time or near real-time with
is an example of a hybrid MVNO, which uses the switching the MNO to quickly provide service. In
infrastructure of partner operators (Telenor and NetCom in addition, MVNOs with mediation solutions
have flexibility in the development of
Norway, and Telia and Europolitan Vodafone in Sweden), but relationships with host companies, enabling
issues its own SIM cards. unique service combinations to be offered to
the MVNO subscribers.
Despite the likelihood that some of the strongest MVNOs will
emerge from the world of fixed-line telephony and Internet, A major European mobile operator
implemented Convergys’ Mediation Manager
major MVNOs, based on the enhanced service provider and integrating multiple legacy systems and
enhanced reseller models (see above), are also expected to improving time-to-market for converged
emerge from retailing organizations. These MVNOs will have wireless data services.
a strong brand, well-established customer base and
considerable marketing experience. For example, in Germany, Convergys Mediation Manager provides the
ability to interact with multiple MNOs and
the highly competitive nature of the market has spawned applications. Events can be gathered directly
numerous MVNOs that are based on the reseller and from the network or from the MNO's
enhanced reseller models. mediation or billing solution. The flexibility
and control that Mediation Manager offers
For these MVNOs’, Convergys’ solution might include enables the MVNO to provide complex
services while minimizing customer care
Geneva, its convergent billing and rating module, as well as issues.
its provisioning module, Convergys Activation Manager. -
Additionally, if this hybrid MVNO owns and monitors
Based (Components)
physical network elements, they might use a mediation
module, such as Convergys Mediation Manager.

Facility-Based (Components)
Facility-Based MVNO

Management Rating Interconnect
Management Network
Code (MNC)
Element
Management
Figure 3: Facility-Based Operations
TMN Layer
Convergys Application Suite
Required Function
MNO Provided
Function
The term facility-based is used in this model because the MVNO owns and controls many more
elements of the physical and software infrastructure. Figure 3 above illustrates the possible functions
and operations that could be included in the facility-based (components) model.
An example of a facility-based MVNO is Tele2, which operates in Denmark where it has partnered with
Sonofon. It is believed to be one of the few MVNOs that own a switch. Tele2’s normal strategy has been
to launch fixed telephony and then to gradually incorporate new products and services, such as mobile
telephony. Its Nordic operations (Sweden, Norway and Denmark) comprise its largest market area, and
Tele2 appears to be exploring MVNO opportunities in the rest of Europe.
MVNOs that have a switch and other network components can keep secure control over their customer
information so that the MNO cannot identify and market to the MVNO’s customers. It provides
independence since the customer base and associated service profiles reside with the MVNO. They also
have the capability to interconnect with their own or more than one core network, if desired, in order to
benefit from the most advantageously priced backbone or trunking.
These MVNOs, with more complex business models, could enjoy better speed-to-market by taking
advantage of Convergys’ Application Suite. This “suite” approach pre-integrates the core billing
functional modules of activation (provisioning), mediation, and billing and rating.

Facility-Based (Classic)
End-to-End Operator

Management Rating Interconnect
Management Network
Code (MNC)
Element
Management
Figure 4: Facility-Based Operations
TMN Layer Convergys End-to-End

Solution
Required Function
MNO Provided
Function
For both facility-based MVNOs and conventional MNOs, there is a need to not only control most of
the physical and software infrastructure but also have a front-end to the billing operation to enhance
the Customer Service Representative’s (CSR’s) productivity and subscriber self-care. Figure 4 above
illustrates the possible functions and operations that could be included in the facility-based (classic)
model.
An End-to-End solution expands the functional footprint of a suite to accommodate both CSR
productivity tools on the front-end of customer service and value-chain management elements on the
back-end of the system. Customer Care includes the native front-end of Convergys’ award-winning,
end-to-end wireless solution, Atlys®, which enables both the operator’s CSR and the subscriber to
have a single view of their account. The Web Self-care component enables account inquiry on, for
example, pre-paid renewals. This could also include an optional interface to a Siebel CRM system for
enhanced functionality, such as case management, product catalogs, etc. Atlys also includes an
optional SIM Management component that can handle a range of SIM card types, ordering
parameters, order file formats and SIM inventory management. Finally, Convergys also brings two
decades of experience in intercarrier Roaming & Interconnect Settlement, which includes integrated
settlement, billing and mediation for roaming. This could also enable operators to offer integrated
pre- and post-paid services and roaming. Finally, this functionality will support settlement with
content providers for emerging services.

MNO SUPPORT INFRASTRUCTURE FOR MVNOs

As MVNOs proliferate, MNOs need to implement the
necessary billing and OSS infrastructure to host and reap CONV ERGY S IN
the many benefits of hosting MVNOs. ACTION
MNOs will require a comprehensive, end-to-end billing
and customer care solution to support both their retail MNOs, who elect a network resale strategy
and wholesale (MVNO) requirements. In addition, a through MVNOs, will require a flexible,
hierarchical billing solution to accommodate
robust architecture is required to provide the scalability to both their own retail operations as well as
handle rapidly expanding subscriber bases. supporting MVNOs.
In addition, MNOs, for example, need to ensure: Non-Facility-Based

MVNO
• Sufficient spectrum and bandwidth to support an

MVNO’s current and future growth needs
• Network quality that meets stringent Service Mobile

Level Agreements (SLAs) Network
Operator
• Accurate usage information provided to MVNOs

Hybrid Facility-Based
to reconcile billing errors MVNO MVNO
• Secure access by MVNOs to their OSS for billing, Convergys’ award winning Atlys end-to-end
provisioning and mediation. wireless billing and customer care solution
provides the operator the capability to capture
MNOs will benefit from an end-to-end solution which and segregate usage to support retail and
wholesale operations, through its Billing-on-
allows them to provide comprehensive billing and Behalf-of feature. Atlys allows operators to
customer care for their retail subscribers, as previously serve multiple MVNOs that enhance the
described. operators’ market coverage and competitive
position.
In addition, they will need to develop a wholesale
business model to accommodate new distribution
channels, such as MVNOs. Key to this are the technical
functionalities, such as hierarchical billing, event repudiation
and convergent pre-paid event monitoring with post-paid
settlement between partners.

MVNO CHALLENGES
Of all the components of an operational support system, billing is probably considered the most crucial
for an MVNO and, therefore, most MVNOs choose to have it under their control. A billing system
provides the MVNO better control over its revenue and subscriber information, allowing it to compete
with innovative charging schemes for its unique mix of goods and services, which a traditional mobile
operator will find hard to match.
Several billing and other challenges are shown below,

such as: CONV ERGY S IN
ACTION
Business Challenges
• Business model Genie Mobile, launched in November 2000, is

the first exclusively online mobile Internet
• Lack of systems integration resources phone service provider in the UK; a subsidiary
of mmO2, it uses the BTCellnet/O2 network.
• Limited wireless and billing experience Genie Mobile offers customers the capability
to purchase and manage their mobile phones
• Understanding customers, competition and
online, register for personalized news, share
processes sports updates and receive information about
selected stocks and favourite home football
team, direct to their mobile phone.
Operations Challenges
Genie's VP of IT Emily Benwell states, "We were
attracted to Geneva because of its ease of
• IT staffing shortage implementation and its ability to handle the
complex issues arising from billing the various
• Operating efficiencies service providers and customers involved in
delivering and receiving WAP services."
• Cost efficiencies
Convergys' rating and billing product, Geneva,
is being used for all rating and billing of end
customers, with charges for purchases
Billing Challenges appearing on customers' phone bills.
• Unique MVNO requirements

• Time-to-market with next-generation services
• Partner management and revenue sharing
• Innovative pricing models
• Convergent pre-paid services
• World-class customer care
• Scalability

M V N O S O LU T I O N S
Convergys Solution Offering
To help MVNOs maximise the enormous potential of today’s evolving networks and services,
Convergys offers a component-based product line utilizing our breakthrough next-generation
framework that enhances the deployment of modular and fully convergent billing and customer care
products, with flexible delivery options and comprehensive professional services, combined to provide
total solutions for MVNOs. Convergys has invested nearly $100 million over the past three years to
develop its innovative next-generation framework to support the creation of its highly flexible and
modular product line.
Figure 5: Convergys’ Product-line

Convergys’ modular product-line supports the creation and addition of specific components to a
solution, ranging from a single module to a full end-to-end solution. The next-generation framework
provides the building blocks enabling plug and play flexibility and investment protection for MVNOs’
needs for all Convergys’ billing products:
• First truly convergent plug and play architecture
• Flexible Migration Path for MVNOs to expand their B&CC capabilities without loss of their
initial investment
• Robust technical capabilities to support next-generation requirements well into the future
• Well-defined product development roadmap that ensures Convergys’ solutions stay ahead of
market requirements on a global basis.

Convergys’ 3-tiered product portfolio consists of:
• Application Modules are stand alone, best-of-breed products, such as Geneva, Convergys
Mediation Manager and Convergys Activation Manager. Convergys’ application modules support
distinct business functions with robust performance and well-documented APIs, and are designed
to be easily integrated into an MVNO’s existing OSS environment.
• Application Suites are off-the-shelf, pre-integrated solutions, such as a “settlement suite”, which
could be further configured to meet an individual MVNO’s needs. The application suites contain
industry-specific business rules that enable easier configuration, faster implementation and thus
quicker time-to-market with new products and services.
• End-To-End Products address the broad range of convergent billing and customer care
functionality for entire vertical market segments, such as wireless. Our proven, end-to-end
products, such as the Atlys wireless billing and customer care solution, are full-featured systems,
with built-in business logic and business rules that enable quick and easy configuration to the
needs of a particular target market.
The 3-tiered product portfolio is supported by:
• Flexible Delivery Options that enable MVNOs to get to market more quickly, increase their
revenue opportunities and support their customers with quality billing and customer care.
Convergys is unique in its ability to deliver solutions in three delivery models – licensed software,
Build-Operate-Transfer (BOT) and Outsourced Billing Operations (OBO).
• Comprehensive Professional Services, which provide MVNOs a variety of professional services,

including billing-related consulting services, data modeling and analytics, solution architecture
and design, implementation, integration and customisation.

P w C C O N S U LT I N G S O L U T I O N O F F E R I N G
PwC Consulting can work with an MVNO to segment

the market, define the product set and develop a PwC CONSULTING
strategic vision, which can be implemented. PwC IN ACTION
Consulting’s integrated business model allows
identification of the key implementation challenges at an
PwC Consulting worked with a leading
early stage, drawing on, amongst other things, strong in-
European mobile network operator to define
house mobile data applications experience. This ensures their approach to MVNOs, both as a partner of
the strategy will be implementable. potential MVNOs and as a possible MVNO
themselves in countries where they did not
PwC Consulting converts the strategy into a business own a licence. Our support included an
analysis of the likely impact of a deal on
plan using in-house business planning software and revenue and subscriber growth and the
MVNO benchmark data. This plan will allow on-going impact on the network operators’ brand
management of the business going forward, will allow positioning. We worked with the operator to
operators to understand the Key Performance Indicators refine their offer to potential MVNOs,
(KPIs) and will provide a tool for strategic pricing particularly in terms of the prices for network
access, and to understand the economics of
decisions and new product analysis. being an MVNO.
Moving towards implementation, PwC Consulting’s

proprietary mobile new product development process
provides the framework for the core processes involved in establishing an MVNO. This
process facilitates the development of products that are in line with the defined strategy and
also incorporates clear links to the definition and development of the IT infrastructure.
Using rapid implementation methodology and pre-integrated solution, process and design templates,
PwC Consulting can enable MVNOs to swiftly implement mission critical systems, supported by best-
practice processes. These templates can be tailored to meet an MVNO’s exact needs, which is a key
advantage when integrating with legacy systems.
PwC Consulting’s vast experience of programme management can help ensure timely, cost-effective
delivery of systems and processes that meet an MVNO’s business needs.
As an MVNO’s business grows, PwC Consulting’s pre-built KPIs and business intelligence
framework gives early warning of potential danger areas and assists MVNOs to spot
opportunities ahead of competitors.

HOW CONVERGYS AND PwC CONSULTING SOLVE MVNOs’ CHALLENGES
MVNO Challenges PwC – Convergys Solution Potential Benefits
Business
Business model • PwC Consulting’s portfolio of proven organisation, Faster time-to-market

process & technology templates are tried, tested & fully
integrated
Lack of systems integration • PwC Consulting/Convergys’ worldwide pool of over Teams can be rapidly deployed, bringing the
resources 10,000 telecommunications specialists right skills to the right place at the right time
Limited wireless and billing • Between us, we have delivered over 400 successful Our breadth & depth of experience, & scale of
experience billing & CRM solutions our resources, enables you to choose a
proven, flexible approach to working with you
• Industry expertise as evidenced by three dozen patents to help you deliver
(pending/approved) in billing software development,
conversion processes & customer care
• Convergys spends US$100 million on research &

development for its billing & customer software every
year
Understanding customers, • Pre-integrated analytical tools give you valuable insight Build an intelligent business with an
competition and processes into your information & processes, from the environment that in a timely manner collects,
relationships you maintain with your customers to how aggregates, manages, distributes & analyses
you measure up against competitors critical information across the entire value
chain
• Integrated CRM & Data Warehouse interface Acquire new customers & increase their
lifetime value
Operations
IT staffing shortage • Large pool of Project Management & software • Ready-to-use expertise in people &
professionals with years of wireless billing experience processes to enable rapid market entry
Operating efficiencies • Core competence in building, deploying & managing • Rapid implementation of the MVNO’s OSS
billing data centers
• Current facilities & monitoring processes in place • Faster revenue realisation

including Value Chain components
Cost efficiencies • Outsource the process of: • Stagger capital investments & focus on
• Design & Project Management core competencies
• Build & Test
• Implement • Attain business goals of revenues, margins
• Operate
& growth

MVNO Challenges PwC – Convergys Solution Potential Benefits
Billing
Unique MVNO requirements • Comprehensive solutions of component-based Solutions tailored to suit each MVNO’s specific
application modules, suites & end-to-end solutions needs
based on next-generation framework
• Our solution contains MVNO specific functionality in Help to differentiate service offering in a
the areas of branding, product support & MNO crowded marketplace
integration
Time-to-market with next- • PwC Consulting’s product definition support & cross- Quickly define revenue-enhancing products &
industry expertise to advise MVNOs on product and services
generation services
pricing strategy
• Client configuration of network elements in Add, provision & manage new service offerings
Convergys Activation Manager which gives MVNOs more control
• Convergys’ billing products, such as Geneva, can Mediate, rate & bill on new parameters, such as
configure, test & launch new services within minutes QoS, data volume & events in a single solution
• Rapid implementation methodologies, multiple Revenue acceleration & competitive

delivery models & wireless market expertise advantage
Partner management & revenue • Convergys’ Geneva enables rating & billing for all Revenue can be shared on a variety of bases
communications, content & commerce services ranging from simple percentage sharing to full
sharing
without customisation re-rate of the event for each individual partner
based on their particular value parameters
• PwC Consulting’s media industry expertise can Enables the MVNO to provide complex services
facilitate relationships with content providers & while minimising customer care issues
support SLA definitions
• Convergys Mediation Manager provides the ability to

interact with multiple hosts & applications directly
from the network or from the host's mediation or
billing solution
Innovative pricing models • Flexible support for any pricing plan to support Competitive advantage can be increased
next-generation business models
• Integrated Pre- & Post-paid solution on a single Drives usage volumes up & facilitates adoption
platform of new services
• Real-time, cross-product discounting Support for unique marketing propositions
Convergent Pre-paid services • Integrated Pre- & Post-paid solutions on a single Support all products & services for both
platform prepaid & postpaid subscribers
Extend Next-Generation services to the entire

customer base
World-class customer care Comprehensive subscriber management, integrated CRM & Increased customer satisfaction & reduced
Web Self-care churn
Scalability Convergys’ solutions scale to support some of the largest Support aggressive subscriber growth plans
mobile network operators in the world
Figure 6: How Convergys & PwC Consulting Solve MVNOs’ Challenges

CONCLUSION
Bu sin ess cas e s uppo rt 3-tiered component-based

product-line
Produ ct definitio n & pricin g Industry
expertise – Flex ible delivery o ptions incl uding
strategies com prehensive o utsou rcing,
over 400
Rapi d implementation appro ach solutions Bu ild-Operate-Transfer and
successfully profess ional services for licen sed
Pre-integrated so lution , pro cess delivered installatio ns
& design templates
Over 18 y ears o f wireless billing &
Pre-built KPI & business custo mer care experience
intelligence framework
Best-in-class mobile billing
so lutions
Figure 7: PwC Consulting-Convergys Solutions Summary
As the mobile market has evolved from 1G to the

current implementation of 2.5G, mobile operators have PwC CONSULTING/
been challenged to differentiate themselves in a market CONV ERGYS
that has become commoditised. In many ways, the
MVNO value proposition reflects the evolution and
IN ACTION
development of the industry from a network-based to a
service/product-based environment. MVNOs will PwC Consulting, working in conjunction with
attempt to create innovative services with strong and Convergys, recently delivered a solution to
well-established brands for new niche specialisations one of Europe's largest enhanced service
providers, enabling the support of multiple
that, at the same time, build an “intimacy” with these network providers whilst enhancing customer
new customers. care and profitability. This encompassed the
following functional areas:
We can expect to see further interest in the MVNO • Marketing
opportunity as data services become more significant • Sales and Order Entry
which should attract and enhance more consumer, • Order Management / Provisioning
corporate and telecom-focused MVNO players. • Billing / Credit Management
However, regardless of their focus, all MVNOs must be • Customer Care and Retention
shrewd negotiators to establish “win-win” relationships PwC Consulting managed and delivered the
with MNOs. analysis, design and implementation, and also
worked with the client to refine and enhance
To succeed in the marketplace, it will be critical for their business processes to ensure successful
MVNOs to partner with world-class global providers, achievement of the business objectives. For
this client, Convergys and PwC Consulting
such as PwC Consulting and Convergys who are able to worked closely to integrate the Geneva billing
work with a potential MVNO operator from concept to and rating module.
implementation. Convergys, with its component-based
product line, can enhance an MVNO’s ability to rapidly
deploy best-in-class billing and customer care solutions that can meet their current needs while
providing a roadmap for tomorrow’s opportunities.

PwC Consulting’s MVNO expertise in supporting product definition and pricing strategies, combined
with rapid implementations leveraging pre-integrated solution, process and design templates, can help
MVNOs to speedily obtain a revenue stream.
Convergys and PwC Consulting are solid partners in the MVNO marketplace, and have shown success
in supporting the MVNO market with a combination of world-class products, services and processes to
ensure the competitive advantage for MVNOs.

CONTACT INFORMATION FOR PwC CONSULTING

To discuss how PwC Consulting can help you transform your business, contact:
EMEA US SALES AND

MARKETING
Warwick Hill Mike Reuschel Louise Sheaman

warwick.hill@uk.pwcglobal.com mike.reuschel@us.pwcglobal.com louise.sheaman@uk.pwcglobal.com
+44 207 804 5543 +1 212 575 5755 +44 207 212 3115
www.pwcconsulting.com
PwC Consulting is one of the world's largest business transformation solutions providers. PwC Consulting has
a deep global footprint with broad local reach in an industry where few have significant presence outside their
home market.
Globally PwC Consulting does significant work for 42% of the Fortune 500. In the U.S., PwC Consulting
works for 56 of the Fortune 100 U.S. companies. In Europe, PwC Consulting works for 78% of the Financial
Times 50 European companies; in Asia-Pacific, for 22% of the Financial Times 50 Asia-Pacific companies.
Worldwide, PwC Consulting has people operating in more than 60 countries. It is part of the
PricewaterhouseCoopers organisation, which, as the biggest name in professional services, has 150,000 people and
a service offering that spans accounting, tax consulting, corporate finance, business recovery, risk management
and legal services. But size is only important if it’s put to good use. PwC Consulting’s global knowledge
management capability is second to none. And PwC Consulting’s global scale provides an extraordinary vantage
point from which to identify new technology trends and market developments, wherever they emerge.
PwC Consulting is uniquely placed in the newly defined global market for business transformation services.
Among the universe of business transformation consultancies, PwC Consulting is a leader in its ability to
implement high-quality, complex, end-to-end solutions for clients on a globally consistent basis. With core
strengths in strategic change, performance improvement, and technology, PwC Consulting helps clients achieve
competitive advantage in the wired and wireless global economy by leading with strategy, applying process and
change management, and implementing technology solutions. The business value offered by PwC Consulting is
as broad as it is deep: scale, industry focus, global delivery capability, competency in technology solutions, and
the broad range of services to execute business transformation and operate it.
PwC Consulting transforms the businesses of clients that want to be leaders in their industry. PwC Consulting
does that by having a point of view about where they can get to — a point of view based on its deep industry
knowledge. PwC Consulting defines how to bring the changes about by integrating strategy, processes and
technology. PwC Consulting creates and implements those changes in practice with its clients to speed their
journey through the complex business landscape. Through all of this, PwC Consulting is consistently open and
embraces new ideas and works well with others.
There aren’t many people who can do all of that. There are even fewer who can do that worldwide. There are
even fewer who do it well. PwC Consulting does.

CONTACT INFORMATION FOR CONVERGYS

To discuss how Convergys is managing the billing challenges of MVNOs, contact:
INDUSTRY ANALYSTS TRADE MEDIA SALES AND

MARKETING
Joe Feldkamp Jeff Hazel

Industry@convergys.com communications@convergys.com europe@convergys.com
+1.513.723.3777 +1.513.723.7153 +44 (0)1223 705000
+1.513.458.1300
+44.191.555.7800
www.convergys.com
Convergys provides billing and customer care products and services, bringing together world-class resources and
expertise to help clients transform customer relationships into a competitive advantage. Convergys Corporation
(NYSE:CVG), a member of the S&P 500 and the Forbes Platinum 400, is the global leader in integrated
billing and customer care services provided through outsourcing, licensing or Convergys’ unique build-operate-
transfer (BOT) delivery model. Convergys serves top companies in telecommunications, Internet, cable and
broadband services, technology, financial services and other industries in more than 40 countries.
Convergys brings together world-class resources, software and expertise to help create valuable relationships
between our clients and their customers. This commitment is validated by the more than 1.3 million individual
bills our software produces each day to support more than 110 million subscribers, and by the more than 1.2
million separate customer contacts we manage each day, both live and via electronic interaction.
Convergys’ world headquarters is located in Cincinnati, Ohio, U.S.A., with customer contact centers and
other offices in North America, South America, Europe and Asia. Convergys is on the Internet at
www.convergys.com.
©2002 C O N V E R G Y S C O R P O R A T I O N ALL RIGHTS RESERVED
Convergys and the Convergys logo are service marks of Convergys, Atlys is a registered trademark of Convergys and Geneva is a trademark of
Convergys. Convergys refers to Convergys Corporation or any of its wholly owned subsidiaries. All other trademarks are the property of their respective
owners. Every effort has been made to ensure that the information obtained in this document is true and correct at the time of publication. However,
because the information contained herein was obtained from various sources, Convergys does not warrant that this document is a complete or error
free and expressly disclaims all warranties, including but not limited to warranties of merchantability or fitness for a particular purpose. Convergys
cannot accept liability for any loss or damage of any nature whatsoever arising or resulting from the use of or reliance on information contained herein.
AM-150202-0054

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COMPETITIVE ADVANTAGE FOR MVNOs

A Solutions Framework from Convergys and PwC Consulting

Chris Merrick, Convergys, EMEA Market Strategy Manager

Mark Gregory, PwC Consulting, Partner

Des Smith, PwC Consulting, Director

PwC CONSULTING CONVERGYS CORPORATION

© 2002 CONVERGYS CORP/PwC CONSULTING 1 www.convergys.com www.pwcconsulting.com

© 2002 CONVERGYS CORP/PwC CONSULTING 2 www.convergys.com www.pwcconsulting.com

CURRENT MARKET CONDITIONS

© 2002 CONVERGYS CORP/PwC CONSULTING 3 www.convergys.com www.pwcconsulting.com

in the delivery of a full range of telecom services. For CONV ERGY S IN

Key Success Factors

© 2002 CONVERGYS CORP/PwC CONSULTING 4 www.convergys.com www.pwcconsulting.com

host through its core competencies, such as the PwC CONSULTING

© 2002 CONVERGYS CORP/PwC CONSULTING 5 www.convergys.com www.pwcconsulting.com

MVNO MARKET PLAYERS

© 2002 CONVERGYS CORP/PwC CONSULTING 6 www.convergys.com www.pwcconsulting.com

MVNO OPERATING MODELS

• May own a switch and other network elements

• May differentiate on services and platforms

• May seek to become MVNOs to facilitate their existing business.

© 2002 CONVERGYS CORP/PwC CONSULTING 7 www.convergys.com www.pwcconsulting.com

Non-Facility-Based (Service Provider, Enhanced Reseller)

Business Marketing/Value- Sales & Branding Pricing Packaging

Figure 1: Non-Facility-Based Operations

© 2002 CONVERGYS CORP/PwC CONSULTING 8 www.convergys.com www.pwcconsulting.com

Hybrid (Enhanced Service Providers)

Business Marketing/Value- Sales & Branding Pricing Packaging

Figure 2: Hybrid Operations

Required Function Optional Function

Today in Europe there appears to be more MVNOs operating CONV ERGY S IN

© 2002 CONVERGYS CORP/PwC CONSULTING 9 www.convergys.com www.pwcconsulting.com

Business Marketing/Value- Sales & Branding Pricing Packaging

Figure 3: Facility-Based Operations

© 2002 CONVERGYS CORP/PwC CONSULTING 10 www.convergys.com www.pwcconsulting.com

Business Marketing/Value- Sales & Branding Pricing Packaging

Figure 4: Facility-Based Operations

TMN Layer Convergys End-to-End

© 2002 CONVERGYS CORP/PwC CONSULTING 11 www.convergys.com www.pwcconsulting.com

MNO SUPPORT INFRASTRUCTURE FOR MVNOs

In addition, MNOs, for example, need to ensure: Non-Facility-Based

• Sufficient spectrum and bandwidth to support an

• Network quality that meets stringent Service Mobile

• Accurate usage information provided to MVNOs

© 2002 CONVERGYS CORP/PwC CONSULTING 12 www.convergys.com www.pwcconsulting.com

Several billing and other challenges are shown below,

• Business model Genie Mobile, launched in November 2000, is

• Unique MVNO requirements

© 2002 CONVERGYS CORP/PwC CONSULTING 13 www.convergys.com www.pwcconsulting.com

Convergys Solution Offering

Figure 5: Convergys’ Product-line

• First truly convergent plug and play architecture

© 2002 CONVERGYS CORP/PwC CONSULTING 14 www.convergys.com www.pwcconsulting.com

Convergys’ 3-tiered product portfolio consists of:

The 3-tiered product portfolio is supported by:

• Comprehensive Professional Services, which provide MVNOs a variety of professional services,

© 2002 CONVERGYS CORP/PwC CONSULTING 15 www.convergys.com www.pwcconsulting.com

PwC Consulting can work with an MVNO to segment