How did Guinea Mobile begin to operate?

Case of success Telecommunications

How did Guinea Mobile begin to operate?

The telecommunications market in Peru has grown a lot in recent years and has also evolved in various ways that have generally benefited the consumer. Just twenty years ago Peru had a state monopoly on telecommunications which provided a very poor service.When Peru opened its doors to free competition in the telecommunications industry, the products began to improve and there were more options for the consumer.

Guinea Mobile was created with the idea of offering an innovative product to a segment of the population that would be happy to use it. Today, Guinea Mobile is one of the key players in the Peruvian market of virtual mobile operators.

Where did the idea come from?

Our co-founder Victor Dyrnes tells us about his experience starting Guinea Mobile.

“The idea of launching a virtual mobile operator was born during a backpacking trip I made through South America about five years ago. While traveling through various countries in the region, I knew that I needed to buy a SIM card to avoid the high costs of roaming. I bought different SIM cards in a couple of countries, and while using them I realized how inefficient mobile services were in several countries in South America. This way, I identified a relevant problem to which I could potentially offer a solution. I thought about successful cases that had already occurred in European countries involving MVNOs. So I started doing research and developing the idea of starting an MVNO while doing my Masters in London.”

guinea mobile mvno

How were you able to identify your target audience?

The business idea started as the MVNO Cuy Movil. In the beginning, our aim was to focus on a young target audience that lived within the city of Lima. We specifically targeted people between the ages of 18 and 35. For example, students on college campuses. Later, when we started growing, we identified that the majority of users were between 25 and 28 years old. And surprisingly, a significantly higher percentage of the users were men.

Why did you choose to start in Peru?

We decided to start in Peru due to several factors, one of them was a market study that showed an oligopolistic market with Claro and Movistar being the two main operators. Another factor that was very important was that the market had just opened for MVNOs after the government had put in place a law to promote more competition. . Further, we noticed there were still no MVNOs that had entered the market, only Virgin Mobile was close to opening up. This meant we could get the first mover advantage by going to Peru vs. for example Colombia who at that time already had 5 MVNOs. . For this reason, we decided to do an MVNO in Peru and after talking to the four network operators, Claro/Movistar/Entel/Bitel, we decided to rent the network and infrastructure of Claro Perú.

mobile telephony guinea

What were the main challenges while getting started?

When we started Cuy Movil, the biggest challenge was grabbing market share in the competitive telecommunications industry in Peru. With time, we have had to pivot and reinvent ourselves.

During the first years there was a lot of administrative work, among the most important was getting a concession from the Ministry of Transport and Communications of Peru. There was a lot of bureaucracy, but at the same time a great opportunity to start a business compared to other countries.

“Over the years we changed the direction of our business plan, creating Guinea Mobile in order to become a host for companies that want to offer mobile services through a whitelabel using their own established brand and distribution, our first wasWings Mobile, a multinational Spanish hardware company. We offer these companies to launch a mobile offer with their own brand on the SIM cards and mobile apps in just 8-10 weeks. As it is extremely complicated to run an MVNO we take care of establishing all the technology, legal requirements and customer service.” -Victor Dyrnes, co-founder of Guinea Mobile

As we can see, the beginning of Guinea Mobile was very complicated. However, today Guinea Mobile has many business possibilities with various different brands venturing not only in telecommunications but also in IoT.

If you want to create your own Virtual Mobile Operator, at Guinea Mobile, we can help you with different digital solutions. Contact us if you are interested in increasing your customer loyalty, information and revenue through mobile subscriptions.

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