MVNO Industry Summit Latam: MTV, Cemig look to enter Brazilian MVNO business

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Although no mobile virtual network operators (MVNOs) have launched in Brazil yet—due to the  bureaucracy in getting approvals, according to some sources—the country is still very attractive, as many delegates noted at this week’s MVNO Industry Summit Latam (check all stories). Companies that are evaluating the Brazilian market include MTV, which has deployed MVNOs in six European countries, and Cemig, a holding company composed of 58 companies and 10 consortia with assets and businesses in 19 Brazilian states and Chile.

In its first presentation in Brazil, MTV Networks’ product manager Bas de Kuiper noted that the company has been in the mobile business for seven years and has plans to move forward into Latin America and Asia. “MTV has been very active throughout the region, and we are open to doing business here, though we do not have any proposals yet,” he told RCR Wireless News.

The key pillar of MTV’s service, Kuiper pointed out, is content. “Content is king. We put locally relevant content into the market. Virgin [which is also launching operations across Latin America] does not have that.”

According to Kuiper, MTV has followed four rules for running an MVNO business: being true to its audience; making an offer that is aggressive but not the cheapest; providing a sticky service; and distributing well.

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Cemig is also eyeing the MVNO business in Brazil. Aline Carvalho, senior lawyer at Cemig Telecom, said the interest in launching an MVNO followed an Accenture research report that showed energy customers would be willing to pay more for energy if they received additional services. “Energy costumers see utility companies as potential providers of more kinds of services,” Carvalho said.

Carvalho told RCR Wireless News that there is nothing concrete yet. The company has set up an internal group to study the MVNO business with the support of consultants. “We aim to launch but cannot say when,” she said. Cemig has not yet acquired licenses from the Brazilian telecom regulator Anatel.

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