Together with CEE Mobile Capital LLC, funds advised by Delta Partners Capital Limited, and International Financial Corporation (IFC), we are joining forces to support the market expansion of the mobile virtual network operator (MVNO) Virgin Mobile Central and Eastern Europe (VMCEE).
The four partners will equally contribute a total of €40 million of growth capital to develop VMCEE’s operations in Poland and to support the launch of operations in Turkey. The financing will enable a roll-out of mobile broadband products that are unique and affordable. These will target young people and the lower-income population in the region, facilitating the digital inclusion of these underserved market segments.
The MVNO model provides mobile phone services using the existing infrastructure of established mobile network operators instead of building a new network.
Currently, there are more than 600 MVNOs worldwide, of which around 400 are in Europe. VMCEE operations will help to develop the mobile market in central and eastern Europe (CEE). The region has an average MVNO market share of less than 1 per cent, well below the western European average of approximately 15 per cent.
The financing will play an important role in demonstrating how innovative business models can successfully use the spare capacity of existing infrastructure. VMCEE’s business model is also expected to catalyse competition and innovation by expanding affordable access to voice and broadband services, which stimulate economic growth.