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Femto-MVNO

IDEA


Idea is to have additional businesses based on Femto-Cell technology. This technology is coming of Cellular Operators into the market of Home Electronics, by similar way as ADSL modems and Wi-Fi. More technical details see in the article Femto Cell Networks in theTelecom Servicespartition.


However, there is even more important usage, which is not so widely discussing now, that FemtoCell can be used for WEB-portals or Enterprises dedicated traffic. This kind of services can be called as Content Oriented access.



Just several brief ideas of business cases, based on such a kind of access:

· Deploying MVNO network with additional own Radio Coverage in Business Centers and Malls. As such cells connected via cheap LAN or ADSL, then there can be a good opportunity to offer cheap International Calls, for example. Let say – IKEA MVNO can offer very cheap calls to countries where IKEA is, as they anyway should have their VPN networks there. It works when subscriber is in IKEA Mall.

· Deploying additional Radio Coverage for distant resorts, temporary/seasonal sport and tourist activities. Income there can be shared by owner of the resort or activity and mobile operators.

· Specialized content oriented networks of FemtoCells in business centers, hotels, exhibitions, airports and so on. This can be done by such WEB-portals like Facebook, Twitter. Income model can be different – free traffic with additional advertisement or selling subscription (of exact social network) to Remote Access in FemtoCells – something like just 5USD per months.

· Similar business model as above, but for specialized Internet Resources like Skype or G-mail.


PRE-REQUISITES


· First of all there must be decided easy (but secure) access to subscribers’ data in HLR/HSS of mobile operators. Some tool which allows to make such connections similar to LAN configuring. Then any middle level System Administrator can manage this business for such players like hotels, exhibitions and similar. Surely such projects as Facebook, Twitter, Skype and similar, can allow to have more proof specialists.

· Second important issue is that solution must be mass marketed, that any related software and hardware came to negligible cost for players and for the subscribers. Most obvious is that cost of 3G Packet Access chip must be as low as possible.


MARKETING


Good thing for marketing is that there is quite limited necessity in external paid advertisement. So, parity level of cash can be reached with less cost.


In fact, let’s examine mentioned above ideas:

· MVNO operator put just small banners in dedicated Business Centers and Malls. Price of this banners is much less than advertisement in Newspapers or on TV. Even more, in case of IKEA MVNO, for example, they even do not have to pay to 3rd parties, as they have big network of Malls.

· Resort and tourists activities can even do not spend money on design of booklet, as information about fringe benefits for mobile calls and mobile internet can be just added in agenda or activity instruction.

· Any Content Oriented traffic of WEB-portals and Internet Services can be advertises right on the exact WEB-portals and Services. The only cost is to make a banner which can be placed anywhere on the own resource and placed FREE OF CHARGE!


ALTERNATIVE BUSINESSES


Appearing of Femto Cell has brought the opportunity of easy and low cost entrance into the telecom business.

· For example, you know the place where is seasonal increase of visitors and then lack of RF resources. Then you may develop small network of 5-10 Femto Cells, make an agreement with major operators and share profit. This business case become even more attractive if you know several places near you where high visiting seasons are different. Then you can transport your Femto Cell network from one place to another and the only thing you have to care is that there is a possibility to have Internet Access via cheap LAN or ADSL.

·

Another point is you are owner of distant hotel, cruise ship or public transport. Then if there is an opportunity to have cheap access to internet and bad coverage of Mobile Operators, you have excellent opportunity to increase income on telecom services. Even if you have calculated the business case and pure profit is equal to zero, then there is anyway a reason to implement your own Femto Cell network, as you have additional competitive advantage for free!

· Another branch of businesses, which are based on Femto Cell benefits, is to provide assured quality of Mobile Network connection. Idea is that when there is some meeting of hundreds and thousands people on small area, there is always problems with usage of Mobile Network services and there is always a group of people which ready to pay some extra fee and have guaranteed aceess. Just few examples

o VIP zone on sporting event or on concert. Guaranteed connection for double fare.

o Business Conference where almost all participants must have regular access to e-mail or access to news in Internet. Surely there can be combined some group of executive persons, which ready to pay extra fee for guaranteed access.

o Alternative in-building access to Mobile Network for specific sort of secure buildings, where impossible to have normal quality RF signal inside the building. These specific buildings can be Banks, Financial Corporations headquarters, some Military and Government organizations. Business then is to act as alternative operator with low cost solutions, as there are no investments in end-user equipment (regular cellular phones are used).


RESUME


As we can see – there are great number of opportunities for additional telecom related business. Even more – this business can be started right now, as there are all ready for that – wide spreading of cheap LAN and ADSL, over 10 models of FemtoCell equipment on sale already.


What are have to be done – is to make simple technical system for connection of private players to mobile operators and there must be clear formal model on income share. Other necessary pre-requisite, which is low cost of 3G chips, will follow automatically, right after services become popular.


What we have then, is the future of unique access! Now it can be based on 3G chip and the subscriber can use it for regular access to HSPA, to content dedicated networks, to home access (using FemtoCell in home). Then it came to LTE chips with LTE speed of access and then even no limitations are remains in terms of speed of access.


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