Facebook's acquisition of WhatsApp is now complete, but what has that got to do with the creation of new Mobile Virtual Network Operators (MVNOs)? In its recent statement, Ovum shared very interesting highlights on how the developments in the voice-over-IP(VoIP) communications space can significantly alter the mobile operators ecosystem.
According to Ovum, while WhatsApp's acquisition by Facebook was approved in US by the US Federal Trade Commission more than six months ago, the approval in Europe came through only recently, enabling Facebook to finally close the USD19 billion deal. With the acquisition now complete, one of the largest IP-based voice and messaging service becomes part of the social media giant, along with Facebook's own Facebook Messenger platform and Instagram, which was also acquired by Facebook two years ago.
Platforms such as WhatsApp and Facebook Messenger have for the last few years become huge alternatives for native voice and messaging services. As the service quality on these platform matures and provides almost the same experience as the traditional voice does, these services can now be offered directly to mobile customers to replace their voice and messaging services on an MVNO model, with WhatsApp leasing the wireless connections from existing mobile operators and offering WhatsApp SIM which will enable mobile customers to make calls and send messages via WhatsApp. Ovum shared a pioneering case of this model whereby a German operator, e-Plus launched a WhatsApp prepaid SIM card in April this year allowing WhatsApp to become an MVNO on its network.
Ovum also said that other digital services such as payments and mobile commerce may be added soon to WhatsApp and Facebook Messenger to create a complete suite of services for subscribers. If these models work out, the industry can expect a lot of smaller and newer players, in the form of MVNOs sprouting around the globe, offering a wide range of IP-based services and effectively, intensifying the already stiff competition in this market.
