Deal of the Year: MCN Telecom and DANYCOM.Mobile team up

MCN Telecom, a mobile virtual network operator for business that operates in five countries, and DANYCOM.Mobile, which is a part of DANYCOM Group of Companies, entered into agreement of intent to combine technologies and subscriber base using cost/benefit sharing business model.

For the first time in the history of mobile communications, two mobile virtual network operators (MVNOs) combine technological and financial resources in order to create a major player in the mobile communications market, as well as to minimize infrastructure costs and increase revenues from communications services and additional products and services.

In accordance with the agreement, the mobile operators take all necessary steps to port DANYCOM.Mobile subscribers to the network of MCN Telecom, that confirms its readiness to provide ported subscribers with mobile communication services. Expenses on infrastructure resources, technical support of subscribers, promotion and sale of services, as well as revenues, are distributed in accordance with the terms of the relevant agreements which are at the final stage of negotiations.

“We see this strategic partnership as a major breakthrough in building a unique digital ecosystem in line with the world's best trends and practices. DANYCOM is an IT company with many years of experience in software development and MCN Telecom is a developer of a telecom platform for the provision of communication services. Our cooperation will significantly expand the presence of united businesses both domestically and in foreign markets, offering our clients the most advanced IT solutions. We have some developments in this direction, but the situation related to COVID did not allow us to implement them. As part of the integration, we transfer to our partner the unique technologies of A2P platform, all user interfaces, our own marketing services for the provision of digital advertising and CPA networks. We plan to carry out seamless porting of DANYCOM.Mobile numbers in early October this year. For subscribers, the transfer from one network to another will be as easy as possible without sacrificing quality of service. The company will keep the brand, its plans will also remain attractive,” Vladislav Deminskii, Development Director at DANYCOM Group of Companies, comments.

“We consider this cooperation as an opportunity to implement a unique model for attracting and serving subscribers of B2B and B2C segments. By combining our own resources of intercity and international network, local GSM connection infrastructure in 65 large regions of Russia and four European countries, and the latest technologies and marketing programs of DANYCOM.Mobile, our partner, we will continue to increase the subscriber base with lower costs in the mass segment. Together with a new project, we plan to continue to offer convergent solutions based on the combination of fixed, mobile and corporate communications, such as "Mobile personnel" (FMC), "Landline/8 800 on mobile phone”, etc. to small, medium and large businesses,” Aleksandr Melnikov, a founder and CEO of MCN Telecom, says.

The financial matter of the agreement has not been disclosed by the parties yet.

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