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In Search of the MVNO Magic Formula

In Search of the MVNO Magic Formula

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Mid-2016 mobile broadband advisory group 5G Americas spoke of a wave of activity occurring in the MVNO space in Latin America, led by Mexico. It is admittedly a relatively minor wave, since there is little to report from Brazil and Argentina - countries that passed MVNO-specific legislation several years ago and were expected to lead the charge. Nevertheless, in both countries the few licensed MVNOs that are operating do feature in the sector authorities' regular updates, ensuring that no-one loses sight of the model's potential. There are also unexpected developments, like Vodafone targeting Chile and Virgin launching in Ecuador, that could serve to rekindle interest in the model in countries that have yet to dive in with both feet. This report highlights the different evolutionary paths the concept has taken in the Latin American markets where MVNOs have taken hold, and considers whether some of those twists could arise elsewhere in the region.

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