Russia’s MegaFon is entering into Fixed Virtual Network Operator (FVNO) partnerships with domestic ISPs in order to extend the reach of its converged fixed and mobile services.
Under the FVNO business model MegaFon pays the ISPs monthly for each fixed user connection, allowing them to monetise their unused port capacity. The operator meanwhile collects payment from customers while overseeing the sale of routers and set-top boxes, customer services, and advertising.
Branded as Unite, the initiative provides users with mobile services, voice, digital TV and wired internet. MegaFon’s first local partner for the tariff was Real Estate, an ISP in the Astrakhan region. The project will be managed by MegaFon’s fixed subsidiary NetByNet, which also oversees development of converged services within the group.
The unit’s CEO Andrey Batanov said: “The FVNO project gives MegaFon the opportunity to bring the converged product Unite to new regions. The model we offer is absolutely transparent both for the territorial partner and for subscribers who will be able to pay for a set of services on a single personal account. The conclusion of agreements with several broadband operators is already in the final stage, and we are open to new partnerships in the regions.”