MNI to launch MVNO in autumn

2007-06-08

MNI Telecom, the alternative telecommunications operator owned by the listed company MNI, has signed an agreement on launching an MVNO with PTK Centertel, the operator of Orange mobile network. The mobile telephony services are to be available in autumn 2007 and the virtual operator expects to break even soon after.
MNI does not aim at the mass market: in 2008 it wants to have 70,000 clients, while in 2010 the number of subscriber should reach 250,000-300,000; this figure is to double by 2012. The operator will offer its services to its existing subscribers of fixed-line telephony and to the users of the premium rate mobile services that MNI provides to the other operators. The company is also going to permit other companies to offer mobile services under their own brands on the basis of the MVNO. These could be used, for example, as loyalty programs for customers. MNI Telecom insists that it is holding negotiations on this kind of offer with dozens of companies.
The company emphasises that the majority of investments required to launch an MVNO has already been concluded. The project is to be carried out by firms acquired by MNI in recent years. By the end of 2007 the MVNO is to cost PLN 10m (€2.6m), including adjustment of the infrastructure for PTK Centertel.
MNI declares that the virtual operator is to be profitable from the outset and the investment should return “very fast”. Despite considering the project as a key one, MNI stands by its forecast for 2007-2008. The revenues are to stand at PLN 180m (€47.4m) in 2007 and PLN 225m (€59.2m) in 2008. EBITDA is to amount to PLN 50m (€13.2m) and PLN 65m (€17.1m), respectively.
PTK Centertel insists that MNI Telecom will not be a real competitor for it, but rather complement its offer. The Orange operator has, however, negotiated the pre-emptive right to buy shares of both MNI Telecom and its parent company. PTK Centertel explains that this is to protect the company’s business and that such clauses are also in agreements with the distributors.

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