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Implementing Mobile Virtual Network

Operations in Bangladesh
Md. Whaiduzzaman and Mahfuzul Hoque Bhuiyan

Abstract— Infact, a full MVNO consists of a Home Location Register (HLR), Mobile Switching Centre (MSC), Authentication
Centre (AUC), and Equipment Identity Register (EIR) and associated signaling capabilities. In this Paper we analyzes how the
MVNO market has changed and what opportunities ,network operators and potentials are likely to face.We implement to plan
the model of MVNO in Bangladesh and we are working with the GSM technology like GP, Warid, and Banglalink operator in our
country. We also design the MVNO network coverage and named it NEXT ZEN TELECOM. We setup the decoder based on
array design NEXT-ZEN numbering plan. This project presents different sectors related to implementation of MVNO in
Bangladesh.

Index Terms—MVNO, Grammeenphone, Banglalink, Warid, NEXT-ZEN

——————————  ——————————

1 INTRODUCTION

Ndeed, all over the world presently, mobile communi- 1.3 CALL GENERATION PROCESS OF AN MVNO

I cation market has reached its peak point. Until recently,

each national market has consisted of only few opera-
tors-Mobile network operators (MNOs) providing a mo-
bile network for the purposes of transmitting, distribut-
ing, or providing messages and Mobile service operators
(MSOs) transmitting messages over a mobile network
obtained for use from a mobile network operator.
Though MVNOs provide mobile voice and data services
without owning the access rights to the spectrum they
use. Consequently, MVNOs can be described as a sub-
group of MNOs. The radio capacity used to provide these
services is gained through commercial agreements with
licensed mobile network operators (MNOs). MVNOs are
a new GSM phenomenon.

1.2 What is an MVNO

MVNO stands for mobile virtual network operator. As
mentioned above the MVNO is a new emerging model in
telecommunication sector. Virtual means that such an
operator does not have its own spectrum allocation or
license but instead acquires them from already estab-
lished Mobile Network Operators (host operator). ng of
mobile spectrum to MVNOs is analogous to the leasing of
unbundled local loop copper wire to competitive broad-
band providers in the fixed line market. At minimum,
these radio elements are:

Here we can define it as MVNO “is a mobile operator

that does not own its own spectrum and usually does not
have its own network infrastructure. Instead, MVNO's Figure 1.1: MVNO
have business arrangements with traditional mobile op-
MVNO have its own brand name and number. So MVNO
erators to buy minutes of use (MOU) for sale to their own
has its own subscriber identity module (SIM), which is
customers.”
memory device that store information such as the sub-
scriber’s identification number, the networks and coun-
ties where the subscriber is entitled to service, privacy
keys, and other user-specific information a subscriber.
———————————————— The ID number of the SIM is given by the MNO or GSM
. network from where the MVNO leased the frequency.
 Md. Whaiduzzaman is a Lecturer with the Institue of Information Tech-
nology, Jahangirnagar University, Dhaka The ID number can be different from the MNO’s number.
 M Hoque Bhuiyan is with the Department of Electronics & Telecommuni- With out SIM installed all MVNO mobile are identical
cation Engineering, Daffodil International University, Dhaka. and no operational. It is the SIM card that gives subscrib-
er units their identity.
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2 MVNO OVER GSM NETWORK
This is the process by which we can make a call form a
GSM network. AS we know MVNO doesn’t have its own
network architecture and have to use a GSM network to
subscribe, so the call transition process is as same as the
GSM system.
In Bangladesh, Grameen Phone is a GSM network pro-
vider suppose we have an agreement with Grameen
Phone that we can use there frequency. So the mobile
with the MVNO SIM card will always paging with the
nearest GRAMEEN PHONE BTS. When the MS will make
a call the transceiver will convert the frequency in to
wave and send to the BTS. Now BTS send the signal to
the BSC and BSC send to the MSC. Now the MSC at first
check that the number belong to them or not and the oth-
er information and send the signal to the BTS where the
desire receiver is situated. And the connection estab-
lished.
Figure 2.1: Implementation of a MVNO network with GRMEEN
phone network
This is the process for establishing a call between two
cells of same operator. In this process we don’t need any
gateway for establishing any call between caller and re-
ceiver.
Now we are going to establish our MVNO network for
different operators. Suppose we can hire frequency from
different mobile operator based on there network cover-
age. As we can see in figure 3.5, a MVNO operator hired
its frequency from three different operators for three dif-
ferent districts in Bangladesh (Dhaka, Comilla and pab-
na). Dhaka zone contain Grameen Phone network cover-
age, Comilla zone contain Aktel network coverage and
Pabna zone contain Warid telecom network coverage.
When a subscriber in Dhaka wants to establish a call in
pabna there is a gateway needed to connect the call from
Grameen to Warid telecom. Because of each network op-
erator have its own gateway.
40
Figure3.1: Implementation of a MVNO network with three different
mobile phone operators.
When a MVNO subscriber made a call from its zone at
first the NSS will find zone of the receiver. If there are
same operator gateway will not needed. But if there are
different network it must need a gate way.
3 MVNO IMPLEMENTATION IN BANGLADESH
Bangladesh is one of the most densely populated country
over the world. The density of population in our country
is very high. We all need a mobile communication in our
day to day life. So there are many mobile operator exist in
our country. Grameen Phone, Warid telecom, Banglalink,
Robi telecom, Teletalk, city cell is the most known mobile
operator in our country. There network is nicely arranged
everywhere. It is so expensive and difficult to build a new
telecom operator on our country. So MVNO is the right
process to build a new operator in our country. In this
chapter we will discuss about a total process of building a
MVNO network.
3.1 IMPLEMENTATION PLANNING OF AN MVNO
Suppose we are going to develop a GSM based MVNO
operator in Bangladesh in. We named it Next-Zen TELE-
COM. For implementing a new MVNO we have to devel-
op two sectors.
1. Network Development.
2. Management and Maintenance development.
3.1.1 Network Development
To developing a MVNO operator we have to develop
some steps given below,
1. Agreements and Frequency allocation
2. Equipment setup and
3. Coverage area Selection
4. Numbering plan
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3.1.1.1 AGREEMENT AND FREQUENCY ALLOCATION

As we are a MVNO operator we don’t have any fre-
quency allocation so we need to borrow frequency from
other Telco operator like Grameen Phone or may be Wa-
rid Telecom. IN MVNO system we will operate our Next-
Zen Telecom totally based on borrowed frequency. As we
are working with the GSM technology GP, WARID, TE-
LETAK, BANGLALINK is the GSM based operator in our
country. They use GSM 900 and GSM 1800 technology.
GSM 900 has a bandwidth of 25 MHz (uplink from 890
MHz to 915 MHz and downlink from 935 MHz to 960
MHz) and a carrier spacing of 200 KHz. Duplex carrier
separations is 45 MHz. Each carrier contains 8 channels.
This means 8*25000000/200000=1000 channels of simul-
taneous calls per second. And GSM 1800 which’s fre-
quency band 1710 MHz to 1785MHz uplink and 1805
MHz to 1880 MHz carrier spacing 200 KHz carrier contain
8 channels. Where we can see 70% to 80% channels are
using. So we can hire there the free channels from the
operators based on their coverage. In our country cir-
cumstance Grameen phone has the best network coverage
around the Bangladesh.

Say Grameen Phone Charges 10 paisa per Pulse, Bangla-

link charges 7 paisa per Pulse and Warid charged 5 paisa
per Pulse for some specific zone. Based on their coverage
and cost we will make a agreement for their network and
frequency. As we can see that the call cost is much lower
of Warid then Banglalink and GP so we will try to use the
network of warid is most then Banglalink and finally
Figure 3.1.1.2: Next-zen network coverage in Bangladesh
where there are no network coverage of Warid and Bal-
glalink we will use the network of GP. Not only that in
MVNO technique we are paying cost of call by pulse we
We have divided our coverage are based on three priority
will create a backup network of GP. We will not use GP
of the cost per minute from the figure given above. We
until all the networks will busy. GP will use only when
show the coverage area of our Next-Zen TELECOM.
there is no free channel. In this technique we will select
Dhaka, Comilla, Sylhet, and some part of the Rajsahi
frequency and coverage area.
zone are under warid telecom. In those are we will give
Warid as first priority Banglalinik as second priority and
3.1.1.2 COVERAGE AREA
Grameen phone as third priority.
A mobile network coverage area means there area cov-
ered by the network. It contains some zone/cluster and
lots of cells. There are many hexagonal cells in a zone.
The amount of cells depends on the size of the area. Each For Rajshahi and rangpur zone Banglalink is the first
zone has a MSC and VLR, HLR and AUC. And each cell priority and GP and Warid will be the second and third
contains a BTS, BSS and MS. The coverage areas call gen- priority.And in Khulna, Barisal and Chittagong zone GP
eration and termination will depend on a priority base will have first priority and banglalink and warid will be
communication. And the priority will depend on the call the second and third priority. In that way we will create
cost and networcoverage. In MVNO operator the BTS and our coverage all over the country. Now we are ready to
MSC we are using is not our own we hired them from the go for our operation with huge network coverage.
MNO. We also use MNOs network coverage.
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3.1.1.3 EQUIPMENT SETUP
In this part of the planning we will set up our network
equipment like MSCs, BTSs, and Decoder etc. when we
are in an agreement with the operators and they will allo-
cate the frequencies they will set up our information in to
their MSC. So when so whenever we will connect with
them there authentication center can detect us.
We can use a decoder in to their MSC where we will set
up an array by which they can choose the priority base
operator.
Figure 3.1.1.3: Decoder based on Array
Another equipment is our server. We must have a server
for gather our information. We can store our user infor-
mation like the amount of time our subscriber user our
frequencies, bills, time of call and other important docu-
ments.
And the most important equipment is our SIM card. SIM
card contain our operator information user id and the
authentication information. This information is given
insider by the manufacturers. There are some other
parts of the SIM card is the memory. A shot memory
is given in the memory for saving contact number and
the SMS.
Figure 3.1.1.4: SIM CARD
3.1.1.4 NUMBERING PLAN
The last and the most important part of the network de-
velopment of an operator is the numbering plan. A opera-
tor must have a personal identity number. Normally there
are 13 decimal numbers for an operator. Like GP number
is +8801712 XXXXXX. Where +880 is the country code of
42
Bangladesh 1712 is the operator’s identity number and
rest six digit is user identity number.
Following this rules we are suggesting our number will
be +880141XXXXXX. Where +880 is our country code. 141
is our Next-Zen operator code and the last six digits is our
subscriber identity code.
Figure 3.1.1.5: NEXT-ZEN numbering plane
In this process we can complete the network planning.
We have an agreement with the MNO. We have our fre-
quencies we have our network coverage, we fixed our
equipment, we have our personal number. So our net-
work is almost ready now we will develop the manage-
ment and maintenance department then our MVNO op-
erator will ready to run.
4.1.2 MANAGEMENT DEVELOPMENT
To develop an MVNO operator we must have a manage-
ment department. Where all the decisions and planning
will take place by the management. The important part of
the management departments are,
1. Tariff plan and
2. Billing system
3. Maintenance
4. Development
4.1.2.1 TARIFF PLAN
Tariff planning is the planning for call costing. For Nex-
Gen operator we hired the free channels from GP, Ban-
glaling and Warid based on per minute use. Suppose GP
will take 15 paisa per Pulse, Warid will take 7 paisa and
Banglalink will take 10 paisa per Pulse. Now we will fix
an average cost for the MNOs. Then we have to take some
charge for our operator service charge and some profit.
Like for Next-Zen operator we fixed the call charge 55
paisa per minute. In this 55 paisa 30 paisa for the MNO
cast 20 for the service charge and 5 paisa for the company
profit. So the total cost per minute will be 55 paisa.
Next-Zen Call rate: 0.55 taka/minute
Here: 0.30 taka for MNO cost+ 0.20 taka for maintenance
cost of Next-Zen+ 0.05 taka profit
If our agreement will be like the MNO will charge differ-
ent for different time slot. Then we can provide our sub-
scriber different offers. Like Day Talker, Night Talker and
Executive.
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DAY TALKER OFFER: 5.1.2.2 BILLING SYSTEM

Service ON Net OFF Net TIME The billing system depends on the subscribers using
Next-Zen. There will be an operator service where all the
information will stored. All the data base and information
Day 35 paisa/min 55 paisa/min 06:00am –
about our subscriber will be there. How many time have
12:00pm
used by the subscriber will be there. Subscribers have to
pay for the call the made. There will be two types of bill-
Night 45 paisa/min 45 paisa/min 12:00pm- ing system Pre-paid and post-paid service.
06:00am
Pre-paid service:
SMS free 1.5 tk *
In pre-paid service our subscriber will pay the call charge
Unlimited 5 GB 1GB 1 month first. He/she have a balance account, which can be re-
charged by the recharge card. For pre-paid service sub-
1100+vat 700+vat 300+vat scriber do not have to pay the line rent.

NIGHT TALKER OFFER: Post-paid service:

In post-paid service subscriber will pay his/her charge

monthly. He/she have to pay line rent with the call
Service ON Net OFF Net TIME charge. There will be a call limit depends on his package.
Post-paid user will have some better facility then the pre-
Day 55 paisa/min 65 paisa/min 06:00am – paid users.
12:00pm Another important service is the MNOs charges. Our
server will have the in formations about the minutes used
by the subscriber. We will pay them based on our agree-
ment.
Night 35 paisa/min 45 paisa/min 12:00pm-
06:00am
5.1.2.3 MAINTENANCE DEPARTMENT
SMS free 1.5 tk * In this part there will be a server operator who will gather
all the in formations and some customers care. All the
Internet Unlimited 5 GB 1GB 1 month user information will store in this server. And the cus-
tomer care will be always for the help of the subscriber. A
1100+vat 700+vat 300+vat subscriber can get information and suggestions from the
customer care. Subscribers can also complain about there
problems in this customer care.

Another department will always connect with the MNOs.

EXECUTIVE OFFER: This department will have all the technical information
about the MNOs. They will provide Next-Zen’s informa-
Service ON Net OFF Net TIME tion to the MNOs and MNOs will provide there informa-
tion to this department. Maintenance department will
Day 40 paisa/min 55 paisa/min 06:00am – observe and the technical terms.
12:00pm
All the technical departments, customer care, servicing
Night 40aisa/min 55 paisa/min 12:00pm- center will be under maintenance department
06:00am

SMS free 1.5 tk *

Internet Unlimited 5 GB 1GB 1 month

1100+vat 700+vat 300+vat

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5.1.2.4 DEVELOPMENT DEPARTMENT References

This is the RND department of NEXT-Zen. In this de- [1] htpp://www.mobiliein.com/what_is_a_mvno.htm

partment the managers will take the development plan- [2] O Hersent, J Petit and D Gurle, ``Beyond VOIP Protocols`` Wi-
ning for the new users, new planning, tariff planning, ley publications, 2005.
marketing planning and other plan for the company. [3] htpp://about.virginmobile.com/about/us/background
In this department we will take plane how to enlarge our [4] htpp://en.eikioedia.org./wiki/history_of_mobile_phone
company. How we can have more profit from our Next- [5] www.mortricity.com/pdf/mvno/motricity_MVNO_withepap
Zen. What other facilities we can provide to the subscrib- er_nov2005.pdf
ers. Facilities like 3G, video conferencing and other latest [6] htpp://www.answers.com/topic/mobile-virtual-network-operator
technology. [7] htpp://wwwtakashimobile.com/MVNO.html
[8] htpp://www.ofcom.org.uk/consult/condocs/sfr/sfr2/sfr.pdf
This department will deal for the new technologies and [9] htpp://www.itu.int/osg/spu/ni/3G/workshop/presentations/lewi
development planning for our Next-Zen operator. In one n_1.pdf
word this department will research and develop our
[10] Economic validityof 3G mobile virtual network operators Varu-
company.
tas,D. Katsianis, Th Sphicopouslos (University of Athens)
6 SERVICES NEXT-ZEN OFFERS:
• Internet service
• 3G
• EDGE
• MMS/SMS/ISMS Md. Whaiduzzaman Completed his BSc in Electronics & Computer
• PUSH PULL Science from Jahangirnagar University, Dhaka and MSc in Tele-
communication and Compter Networking Engineering from London,
• FnF UK.He is a member of IEEE and British Computer Society.
• Voice mail service
• International rooming
Mahfuzul Hoque Bhuiyan has completed his BSc in Electronics &
Telecommunication Engineering from Daffodil Inernational University,
Dhaka
CONCLUSION

Without a licensed spectrum and having a network infra-

structurer Mobile Virtual Network Operator (MVNO) can
give a super virtual new mobile facility to the customers.
In this paper we have studied about MVNO, its types,
concepts, network architectures, how it use GSM net-
works, feature, strategies, business models, effect in mar-
ket and we give an idea and model about implementation
of MVNO in Bangladesh named as (NEX-ZEN).We have
a great opportunity for designing and giving business
model and technical details of implementating a MVNO
network in Bangladesh.