Despite a lack of commercial launches, Brazil’s mobile virtual network operator space seems to be cooking. At this point security insurance company Porto Seguro and Virgin Mobile Latin America, are both planning to launch MVNO services using Datora Telecom’s network at some point this year.
“We ended the regulation part at the end of last year. Our intention is go live with the MVNOs, but only our partner companies can reveal the commercial launch date,” Daniel Tibor Fuchs, Datora’s founder and chief innovation officer, told RCR Wireless News.
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Both Porto Seguro and Virgin Mobile did not disclose a specific date for the launch. Porto Seguro has made a deal with TIM, and VMLA is expected to partner with Telefonica, following the agreements the company had in other Latin American countries. VMLA said it expects to become the leading MVNO provider in the region within the next five years. The company has announced that it has obtained licenses to operate in Chile, Colombia, Mexico and Peru.
Fuchs noted that Datora has worked to get the network ready and available for future MVNO contracts. “We are an MVNA [Mobile Virtual Network Aggregator], and we are searching for more partners,” he said. Fuchs added that future companies would be able to go to market faster because Datora is now more mature and has gotten over a learning curve.
Regarding the MVNO market, Fuchs said that companies are evaluating what will happen if the pioneers decide to launch, or not to launch, an MVNO service in the country. “It is positive when firms evaluate opportunities because worldwide, the number of MVNOs that have launched and then closed is huge.”
In addition, Datora’s founder noted the enormous potential of machine-to-machine (M2M) technology. The Internet of things, he stressed, is an underserved market in Brazil, which Datora is focusing on. Fuchs citied Brazilian telecom agency Anatel’s prediction that 1 billion devices will be connected by 2020, demonstrating the potential of the M2M market. “I do not know if we will achieve this number, but we have to keep in mind that all vehicles in Brazil will have to carry a GPRS [General Packet Radio Service] chip,” he said. “In ten years, 100 million vehicles are expected to have this chip. Even if not all of them are working or on, there are lots of opportunities.”
