Background

Mobile Virtual Network Operators (MVNOs) have been a feature of the mobile communications industry for several years but most of the companies in this segment are already involved in the telecommunications industry. In general these companies have wanted to be able to offer a mobile service product to complement their existing fixed or Internet Service Provider business.

There are reputed to be around 100 MVNOs globally with the majority of these located in Europe. In Asia the Hong Kong regulator OFTA has mandated that network operators should make available up to 30% of the capacity on their 3G networks to MVNOs.

In Australia there are no regulatory restrictions on the operation of MVNOs however their entry to the market is dependent on negotiation of a satisfactory commercial access arrangement with a host network.

Vodafone publicly launched Vodafone Wholesale in November 2002 with the intent of providing MVNOs access to Vodafone's Australian infrastructure on terms that will enable them to create their own mobile proposition.

Grahame Maher, Managing Director of Vodafone Australia said, "Vodafone Wholesale forms an integral part of Vodafone's 50/50/50 strategy. Performance to date demonstrates that we can increase our revenues at marginal cost. Vodafone Wholesale is a perfect complement to our branded business strategies"