How MVNO can curb monopoly?

The Sun (Financial Daily, page 2) - December 21, 2005. According to Datuk Seri Dr. Lim Kheng Aik (Minister of Energy, communication and water Malaysia):

"APPLICANTS vying for 3G licences will have to adhere to a new condition involving the promotion of mobile virtual network operators (MVNO), in order to avoid monopoly by licence holders"

MVNO (Mobile Virtual Network Operator)
Previously, I did blog about Redtone's venture into the MVNO; where it is supposed to be a dynamic setup concept for the next generation telecommunication infrastructure.

But I am just curious how can it benefit open-policy ?

Referring to the official guidelines by MCMC that:

Mobile operators are faced with a situation where even before recouping the investments in the current infrastructure, they are forced to invest in new generation networks, which makes investment in mobile infrastructure recurrent.

As a result of this phenomenon, service based competition is increasingly gaining prominence in the mobile sector compared to facilities based competition as service based competition is a way in which mobile operators can recoup their investment.

In order to facilitate and promote service based competition, regulators around the world are increasingly placing more emphasis on issues such as infrastructure sharing and domestic roaming.

In line with the requirements in the AIP, licensees who submitted bids for 3Gspectrum had outlined various options on infrastructure sharing.

It seems like TMB(Telekom Malaysia Berhad) is obligated to participate in this project since it is the one with the vastmost facilities in terms of telecommunication.

The caveat is that by doing so, TMB will not be seen as a monopoly player in the field. Something which is parallel with MCMC's open policy for non-monopoly. This eventually will quench the politically issue associated with TMB's monopoly.

Thus, just like what Dato Seri Dr. Lim Kheng Aik mentioned that the purpose of the MVNO concept is to curb monopoly is quite true in the aspect of TMB. Otherwise, it is more accurate to view it as a solution for cost-efficiency and convergence of technologies.

Comments

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Yes, I think so. But we really need the government to push it, knowing how snobbish our existing telcos are. That's why it become one of the components for the new 3G applications, see if Digi is more willing to share this time...
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