Manx Telecom has announced a major new MVNO '''Mobile Virtual Network Operator” partnership with O2 UK which aims to target the international traveller market. The multi-million pound agreement will provide services for international customers travelling into the UK, enabling them to purchase pre-paid SIM cards which offer competitive in-country rates. In addition, Manx Telecom will also act as a “Mobile Virtual Network Aggregator” giving smaller niche MVNO companies access to the O2 network. Both O2 in the UK and Manx Telecom were part of the Telefonica group until June 2010, when it was announced that Manx Telecom had been acquired by CPS Partners, a specialist international telecommunications management company and HgCapital, a leading European private equity investor which invests mainly in the telecoms, media, technology, and services sectors. At the time of the announcement, both O2 UK and Manx Telecom said that they would seek opportunities to work together on new projects, and the MVNO deal is the first of such initiatives. Announcing the new initiative, Chris Hall, Manx Telecom Managing Director, said, “O2 is one of the largest telecoms operators in the UK, with 21.4 million mobile customers. It’s also one of the most innovative in the world, and this new deal is the first fruit of the strategic relationship we established with them when we changed ownership. The fact that we have been chosen by O2 to work with them on such a major initiative is a huge endorsement of Manx Telecom’s ability to compete in the global arena, working in this instance with one of the major players.” The MVNO deal reflects wider changes in the telecoms industry. MVNO's provide a mobile service to their customers without themselves owning a mobile spectrum licence, or necessarily any mobile network infrastructure. Many well know mobile phone brands, such as Tesco Mobile and Virgin Mobile, are MVNOs. Manx Telecom’s Head of Business Development, Tom Meageen, said: “Over recent years, we’ve developed an excellent portfolio of mobile products which we market to international travellers. In 2009, we launched a very successful MVNO in the USA, and this new partnership with O2 will enable us to further strengthen our market position by adding one of the leading networks in the UK to our portfolio.” The market is a fast moving one. While larger companies and brands can establish their own MVNOs, many smaller companies whose business would normally be of insufficient size to purchase services from an established mobile network operator are now grouping together in “Mobile Virtual Network Aggregator” partnerships in order to get access to a large network. MVNA deals deliver economies of scale, effectively allowing the launch of smaller MVNO’s quickly, and at little cost. The popularity of MVNOs and MVNAs reflect the increasing maturity of the mobile telecommunication market in developed economies, as mobile network operators seek to generate new wholesale revenues and gain a slice of the lucrative and growing consumer market for mobile, telephone, and data products and services. “Manx Telecom,” says Chris Hall, “is recognised throughout the global telecoms industry for our track record of innovation, our culture of partnership, and our ability to deliver on promises. Looking to the future, our priorities are to firstly continually to improve the range and value of the services we deliver for our on-Island customers, and secondly to expand and grow our off-Island business. Both objectives are complementary; a strong Manx Telecom using its skills and expertise in the global marketplace means that, on-Island, we can continue to offer leading edge products and services, provide jobs, and help keep the Island at the forefront of the eBusiness revolution. This deal – and others like it which will follow in the future – is the best possible news for both Manx Telecom and the Island’s economy.” O2 Business Sales Director, Ben Dowd, said: “We were always looking forward to continuing our relationship with Manx Telecom, and this deal opens up new opportunities for us. In the last 12 months alone, we’ve worked hard to make sure we have exactly the right mix of partners to grow our share and more importantly our revenue in the MVNO market. O2 is home to two of the largest players, and the MVNA capability with Manx Telecom now gives us the opportunity to offer smaller companies access to the O2 network.” Ends