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ZerOne Not an MVNO |
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It looks like an MVNO, it acts like an MVNO, but Zer01’s new nationwide virtual mobile operator isn’t quite an MVNO. The key is VoIP, said CEO Ben Piilani: instead of buying wholesale minutes from network operators, Zer01 is using interconnect agreements GSM and UMTS carriers to access their wireless data pipes, over which it is delivering its IP voice service. As a result, Zer01 will be able to launch a nationwide unlimited mobile voice and data service for $70 a month. “The GSM networks we’re using provide the last mile connectivity to the customer, but the data is all ours,” Piilani said. “That’s why we’re not the typical MVNO. We’re more of a hybrid.” Zer01, a subsidiary of Unified Technologies Group, is launching its hybrid operator at CTIA Wireless next week, using a business model Zer01 bets will allow it to escape the fate of other MVNOs in the US. Instead of leasing minutes, Zer01 has revenue-share agreements with Tier I and regional GSM operators (all unnamed) which gives the Zer01 unlimited access to their GPRS, EDGE and W-CDMA data networks. Zer01 runs a session initiation protocol (SIP)-based VoIP service that mingles voice packets with the GSM operators’ data traffic until it is offloaded onto Zer01’s VPN. Piilani said Zer01 is able to support VoIP, not just over 3G connections, but low bandwidth GPRS and EDGE links because of a virtual bandwidth stabilization technology United Technologies developed called veritable mobile convergence. From the operator’s point of view, it’s selling another unlimited data subscription, which Zer01, in turn, manages, Piilani said. Though operators are typically wary of VoIP traffic on their networks, Zer01’s platform is a bit more palatable because of the revenue share agreements in place, preferable to a Skype or other independent provider merely appropriating their capacity, Piilani said. Zer01 isn’t the only virtual operator experimenting with VoIP in the mobile world. At Mobile World Congress, Truphone announced plans to launch a global MVNO, using carrier wholesale agreements worldwide to make every international long distance call not much more expensive than a local one. Unlike Zer01, though, Truphone isn’t using VoIP end-to-end—or at least announced no plans to do so. It uses the circuit-switched network to reroute an international call to a local number, where the conversation is then off-loaded into its international VoIP network. Zer01 is bypassing the circuit-switched network and the operator core entirely. With that kind of architecture, Zer01 hopes to avoid the low-margins that have plagued other MVNOs while keeping its prices low, Piilani said. Zer01 initially will offer unlimited calling and data usage in its national footprint as well as unlimited calls to Canada and Puerto Rico. It’s $69.95 a month plan includes all taxes and fees, imitating the flat $50 unlimited voice plan that Boost Mobile recently launched. The inclusion of unlimited data, though, gives Zer01 an edge, undercutting Sprint’s Simply Everything plan by $30. GlobalVerge sign up. Zer01’s service initially will work only on Windows Mobile smartphones, which will be unsubsidized and carry a rather hefty price tag. But Zer01 plans to expand the service to the BlackBerry and Android and eventually the Apple iPhone. While the service will start out national, Piilani said Zer01 plans to offer a global service soon, leveraging interconnection agreements with international GSM operators. |
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