FACEY RETAIL Solutions, the Miami-based subsidiary of distributive conglomerate, Facey Commodity, is set to expand its telecommunications business in the European market with the launch of a mobile virtual network operator (MVNO) in Germany which will be available in the Wal-Mart stores in that country."It (Facey Retail Solutions) is a subsidiary company of Facey," the chairman of Facey Commodity, Desmond Blades, told Sunday Business. The company distributes handsets and also provides telecommunications solution throughout the Caribbean and South America, particularly with MVNOs.
MOBILE VIRTUAL
NETWORK OPERATOR
An MVNO is essentially a company which has a contract to use the existing network of other mobile service providers. It then bundles and resells minutes to customers under their own brand. With little or no physical infrastructure, the company does not own a licensed frequency spectrum. The plan is extremely popular in Europe, particularly with Virgin Mobile.
Mr. Blades admitted that this latest venture conformed with Facey's expansion strategy, even as it strengthened its traditional lines of business. "We're expanding ... the merchandise division, the pharmaceuticals division [and] the traditional lines but these are new opportunities. Fifty years ago there was no such thing," he reflected.
In recent times, Facey has moved to aggressively diversify its operations. The company is the largest retailer of Digicel phone cards and last year acquired the Xerox franchise in Curaçao and Aruba which has allowed it to spread its wings in Guatemala, Nicaragua and the Dominican Republic.
Commenting on the relationship with Wal-Mart, Mr. Blades said: "Well the partnership with Wal-Mart is a marketing decision. They already have the substantial presence and we are, so to speak, tagging along on their coat-tails.
A.W.M.
