“It’s not just a numbers game,” explains Bernt Fanghol, VP global sales at MCP. “The numbers are impressive, but what drives us is delivering quality of service to our customers – a reliable network, good prices and long-lasting, profitable partnerships. We have never lost a customer to a competitor and I think that speaks for itself.”
In contrast, plenty of MCP’s competitors in the global maritime wireless communications sector have lost customers to them. Some of the headline contract wins for the Telenor-owned, but independently operated, company over the course of the last year include names of the order of Norwegian Cruise Line, Costa Crociere, Corsica Ferries, Ibero Cruceros and Scandlines. In the case of Norwegian Cruise Line and Costa, both were serviced by major operators in their home countries (the US and Italy respectively) and both switched their service provider to MCP.
This succession of wins, allied to ever-increasing mobile usage, is fuelling phenomenal development for MCP. Last year’s near 25 per cent business growth rate should, according to Fanghol, be emulated or surpassed this year, with 142 vessels now contracted to the firm’s fully-owned network, CellAtSea. This is enabled through over 300 global roaming agreements, giving unbeatable coverage for those wishing to stay connected to land while at sea.
MCP’s network enjoyed a record 9.3 million users in 2011, while Fanghol predicts closer to 12 million users in 2012. Data traffic, thanks to the popularity of smartphones, increased by a staggering 180 per cent over the last 12 months.
So, how does Fanghol explain this growth, which comes against a backdrop of falling call prices, market uncertainty and maritime mobile operators sinking without trace? “It is because this is our only focus,” he says. “Mobile communications at sea is all we do, and we do it well.”
Of course, it’s not quite that simple. MCP has the backing of Telenor Group, one of the world’s major mobile operators. Telenor can boast some 146 million mobile subscriptions and mobile operations in 11 markets, with a footprint in an additional 19 markets through the 35.66 per cent ownership of VimpelCom Ltd. This gives the business expertise, a solid operational reputation and all-important “financial muscle”, as Fanghol puts it. However, as he is keen to stress, MCP, in business since 2002, operates with entire independence from its parent, leaving it free to focus on niche success, albeit a global niche.
“We are tailor-made as an international mobile operator for ship owners. Recognised by International Telecommunication Union (ITU) as a super-national mobile operator with our own number series, we own our own switching equipment and all the roaming agreements, which are negotiated in-house by our own dedicated team. None of our competitors can offer this. In the case of our biggest competitors, they are owned by major telecoms firms too, but they are not independent, operating on the back of their parents. Therefore, if your parent owns the network and negotiates the roaming agreements, where do you think their focus will be? On land of course, where 99.9 per cent of their business is. That means the sea-based services sit at the bottom of the food chain – not getting the attention, technical service and focus they deserve.”
MCP’s focus pays dividends, both for the company and its customers. As the market matures, needs are changing and there is more emphasis on service quality, rather than just offering a service in the first place.
“People expect to be able to use their phones, laptops and tablet devices,” says Fanghol. “Such devices are an important part of their lives and they don’t want to be forced to change the behavioural patterns they have on land just because they go to sea. They therefore demand service coverage and quality, something that our operationally excellent network, boasting near 100 per cent uptime, consistently delivers.”
If the users are happy, the benefits for the ship owners are manifold – impacting positively on the brand and heavily on onboard ship revenues. “Our business models deliver huge benefits for our customers,” Fanghol explains, “and we work hard to maximise them through marketing onboard – driving awareness of available services and prices. Passengers have a tendency to adopt a ‘worst-case scenario’ when they think of costs for using mobile services onboard ships, so, by educating them about the true price levels, we can drive up awareness, call volume and revenue for our partners.”
He calls this a ‘win, win, win’ situation – “for us, for the ship owners and for the passengers that have a demand for a quality communications environment.”
MCP markets itself as being ‘here to stay’ for its customers. On the face of it, this conveys the stability of a business that has secured a solid, leading position in a sector characterised by failing businesses, consolidation and widespread uncertainty. But beyond that it also says something about the firm’s vision for the future. MCP has invested in its own network and is currently investing in next generation technology to secure its future integrity and performance. 3G appears to be the way forward, says Fanghol.
“We’ve just started a 3G pilot trial onboard a vessel in Norway. We’ve tested the technology in the lab and its now in the hands of passengers, with a view to rolling it out across our customers’ vessels from Q4 this year. Data traffic has exploded and experts predict that it will increase by as much as 30 times over the next four to five years. 3G connectivity will allow us to cater for that traffic, giving users the performance they desire to make the most of, for example, social media platforms on their smart phones and laptops.”
He adds: “When rolling out 3G, our systems will be 4G ready and this is something we’ll consider for the future. We’ll do what it takes to provide the best service in the market.”
With this level of commitment, Fanghol and his colleagues envisage a continuation of the company’s stellar growth over the coming years as MCP continues in its mission to connect ship owners with a quality service that drives onboard revenues and gets people talking.