Orange a fifth mobile operator in SA?
Orange Horizons, a unit of French-based mobile operator Orange, says that if it had access to spectrum, it would become mobile network operator (MNO) “tomorrow”.
In an interview with BusinessTech, Orange Horizons CEO, Sébastien Crozier said that given the frequency, “we could enter the market as a real player,” possibly through an agreement with an existing player to be on its network.
Previously Orange has spoken about its intention to become a Mobile Virtual Network Operator (MVNO), but has been critical of a lack of legislation covering that sector of the industry.
In January, Orange launched Orange Horizons as a subsidiary dedicated to seeking out new business opportunities in countries where the group is not already present as a mass-market telecommunications provider.
The group already sells products in SA through its website, and has a business unit serving high profile companies in the mining, and petroleum industry.
“If you have frequency, you are an MNO,” Crozier said.
He said that the company would launch “tomorrow” as an operator if it was awarded frequency. “If there is available frequency, then why not?”
Frequency is the equivalent of a licence, Crozier said.
“We are always interested in becoming an MNO in a country where there is opportunity. We think that South Africa is a very interesting market.”
He said that if the regulations were ready, and the prospect of becoming an MVNO was attractive, “we will be”.
He said that Orange has asked to regulators to draw up new regulations for MVNOs. “It’s very easy for South Africa to write up new regulations for MVNOs.”
On the failures and success of Virgin Mobile as the country’s only MVNO, Crozier said: “Virgin is not a full MVNO. It’s a kind of brand licence; maybe it’s a bit more complex than that. It means, though, that they do not own the heart of their network.”
Price
“Orange is not a low-cost brand, so we are not going to fight a war on price. We think that it’s very important to bring to the consumer, more for the same price,” Crozier said.
He suggested that the company would offer innovative pricing models, rather than bringing down prices.
He said that there were niche segments where the price was too high, the company would look at that, including SMS and roaming.
“Globally, we don’t think that there is a need for a price war to serve the needs of the market.”
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