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Brazilian MVNO | Church To Market Chips

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Source: TELETIME News

Brazilian telecoms Anatel published in the Official Diary today, an authorization allowing Alô Serviços to operate as a mobile virtual  network operator (MVNO), using the Vivo network.

The operator holds an authorized license, which means it will operate as a reseller of chips, but may add some value with non-telecom services, according to Anatel competition superintendent, Carlos Baigorri.

The new virtual operator is born with great potential for success, given that  Alô Serviços is connected to the evangelical Assembly of God, which counts 18 million adherents. The business model was signed by Ricardo Knoepfelmacher, former chief executive of Brasil Telecom.

Convergência Digital fills in some of the details.

Brazilian telecoms Anatel published in the Official Diary today, an authorization allowing Alô Serviços to operate as a mobile virtual network operator (MVNO), using the Vivo network.

The MVNO market of virtual operators, which got off to a slower start than expected, may be taking a turn for the better. On January 30, Anatel published in the Official Diary an authorization for Alô Serviços to function as a mobile virtual network using the Vivo network. This is the first license of its kind conceded to a Brazilian church.

Currently, four companies hold an MVNO license: Porto Seguro and Datora Telecom, incorporate in Brazil by Vodafone and operating on the TIM network, and Vivo and Terapar, who operator on the CTBC network.

The British company Virgin also holds a MVNO license in Brazil, and announced last year that it would enter the market early this year, but has yet to discuss its Brazilian infrastructure. The federal postal service are authorized to engage in MVNO operations, but the plans have not progressed as expected and for the time being have not gotten off the drawing board.

Authorized MVNOs have more obligations because they use the networks of incumbents but operate in complete different ways, including a unique number for its services. This is not true of Alô Serviços. This company promises to move the market. With ties to the Assembleia de Deus, it has the potential to reach 18 million of the faithful.

The idea, according to the daily Valor Econômico, is to sell chips for between eight and ten reais. In its first year in operation, it plans to attract 1.2 million subscribers. The operational strategy was designed by Ricardo Knoepfelmacher, ex-CEO of Brasil Telecom.