Modelling the competition of an HNO versus an MVNO in the mobile telecommunications industry

This paper analyses the relationship between a Mobile Virtual Network Operator (MVNO) and its Hosting Network Operator (HNO) in the mobile telecommunications industry. A model is defined to analyse the competition and strategic interactions between the two players and their economic consequences. Two different scenarios are envisaged to observe the effects when varying the interconnection charges and structural characteristics of the operators. The analysis of the results obtained from the model focuses on retail price strategies and on market shares and profits in an attempt to provide recommendations which may be utilised in the decision-making process