MVNO Monday: a guide to the week’s virtual operator developments

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7 Dec 2020

Swedish telecoms group Tele2 has agreed to sell its German business to the Tele2 Germany management team for an enterprise value of up to EUR22.8 million (USD27.7 million), dependent upon the financial performance of the business until the end of 2024. After what it describes as ‘a thorough M&A process’, with a large number of potential buyers, Tele2 concluded that selling Tele2 Germany to the local management is the most value accretive alternative. The transaction is expected to close in December 2020. Kjell Johnsen, President and CEO of Tele2, commented: ‘The German management has done an impressive job during the years by creating significant value despite having a portfolio of products in structural decline. They are clearly best suited to manage the German business going forward, while Tele2 can continue its focus on core markets and products.’ At the end of September 2020 Tele2 Germany reported an MVNO subscriber base of 103,825, down from a peak of 244,000 in June 2015.

Tele2 Russia has confirmed that Eagle Mobile – the new MVNO launched by undefeated UFC lightweight champion Khabib Nurmagomedov – began providing services on 1 December. Connectivity is initially limited to Moscow and the Moscow Region. The MVNO says it will donate part of its proceeds to a charitable foundation that helps families and children experiencing difficult life situations. Mr Nurmagomedov commented: ‘Many people asked what I would do after the UFC. Eagle Mobile is one of the most interesting projects with my direct participation. My partners and I approached the task responsibly and prepared a very strong and promising product. We were able to build an operator according to my life principles and priorities.’

Sticking with Russia, on 25 November 2020 regulator Roskomnadzor confirmed the cancellation of the three operating licences held by DANYCOM. The concessions in question allowed the MVNO to provide mobile radiotelephone communication services, data transmission and telematics. As previously reported by MVNO Monday, the ill-fated virtual operator filed for bankruptcy on 29 October after a series of defaulted bond payments.

Finally, over in Brazil, Sao Paulo-based football club Sociedade Esportiva Palmeiras has launched its Alo Verdao MVNO in association with Dry Company do Brasil. The MVNE has previously helped to launch around a dozen football club-affiliated MVNOs, including the likes of Chip do Vascao (CR Vasco da Gama), Cruzeiro Celular (Cruzeiro Esporte Clube), Esquadrao Celular (Esporte Clube Bahia), Sao Paulo Celular (Sao Paulo FC) and Sport Cel (Sport Club do Recife). All Dry-affiliated MVNOs utilise the TIM Brasil network.

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Brazil, Germany, Russia, Alo Verdao (Palmeiras), DANYCOM, Dry Company do Brasil (MVNE), Khabib Telecom (Eagle Mobile), Tele2, Tele2 Germany