AKEP promises study to evaluate the possibility of entering the market of virtual mobile operators

2024-06-04 07:43:00, Aktualitet CNA

AKEP promises study to evaluate the possibility of entering the market of

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Albania is one of the few countries in Europe that does not yet have mobile virtual network operators (MVNOs).

This issue has become even more sensitive with the reduction in the number of mobile operators to just two, starting in 2023. The market has returned after 15 years to a duopoly structure, and the reduction in the number of operators has created competition-related concerns and with consumer interest.

In the report for 2023, the Electronic and Postal Communications Authority (AKEP) states that, in full compliance with legislation and regulatory acts, it will undertake a detailed study on the assessment of the opportunities and impact of MVNOs entering the market of mobile communications services.

Ensuring a favorable regulatory framework for the entry of MVNOs is one of the recommendations of the Competition Authority for AKEP in 2022, in the decision to allow the concentration between the operators ONE and Albtelecom

In the 2022 annual report, AKEP stated that the law "On electronic communications" and the existing regulations do not present any obstacle for MVNO operators to provide services using the network of a mobile operator, services which include mobile phones, internet, broadcasting data, etc.

AKEP has received two requests for authorizations as MVNO operators already in 2018, but since then this process has not progressed, because AKEP had requested time to analyze whether the existing legal and regulatory framework created spaces for the authorization of these operators.

AKEP has come to the conclusion that legally there are no obstacles for licensing MVNO operators, but still there are no new developments in a possible licensing process for operators of this type. In 2018, the two operators interested in offering virtual mobile phone services were Neofone and Digicom.

Virtual operators do not have their own network infrastructure, but use the network of existing mobile network operators (MNOs) by agreement.

MVNO operators are present in most telecommunications markets in Europe and in some cases their operator market share reaches up to 15%. The business model of MVNO operators has quite a wide spectrum.

Some of them function more or less as resellers of mobile network operator (MNO) services, marketing these services under their own brand and following specific marketing strategies.

But there are also MVNO operators who own a supporting technical infrastructure, which enables them to add value to the services offered through the MNO network.

As the market has already reached a stage of maturity, it is very unlikely at this moment that there will be interest from new investors to set up true network operators (MNOs), because this would require a very large investment, meanwhile that the size of the market is small.

Under these conditions, MVNO operators are seen as the only real opportunity to increase the number of operators and competition in the retail mobile services market./ Monitor Magazine