Why Success is Elusive for MVNO Operators?

 

A wireless MVNO is a great business model, but only if it is executed properly. Only 1 in 10 MVNOs get past the initial stages after their launch, which points to a very challenging situation.

Although MVNO model is designed to facilitate subscribers who cannot afford MNOs pricey services, success for MVNOs remains elusive. In most cases, this can be attributed to a lack of technical knowhow and expertise. Even though MVNOs receive the RAN resources as part of bulk agreements with MNOs, they are not always able to exploit it to the maximum.

Different MVNO Type

MVNO model has many variations. There are different types of MVNOs in the market:

·       Branded reseller

·       Service provider

·       Enhanced service provider

·       Full

As we move from top to bottom in the list, the in-house expertise of MVNOs increase. For example, a branded reseller only deals with basic marketing and selling of services. It does not have its own hardware and core network resources like VLR and HLR.

On the other hand, a full MVNO has all the resources except for Radio Access Network (RAN), which it procures via an MNO.

For MVNOs that do not have a lot of money, the branded reseller MVNO model works the best. Richer MVNOs can opt for Enhanced service provider or Full MVNO model.

It is imperative that the right MVNO type should be selected by the entrepreneurs, in order to ensure maximum success through a business venture.

Billing and Monetization are the Key Aspects

One of the biggest reasons why many MVNOs fail is because of their bad monetization and billing. Not having any technical expertise can be detrimental if the billing software that you are using is not simple and intuitive. Some essential features of a telecom billing system for an MVNO are:

Transparency in billing

A convergent charging platform is needed for ensuring maximum transparency in billing. A real-time OCS is a minimum requirement. As there are many services to sell, you need to have a single-view of the customers, so as to maximize your marketing potential.

Flexibility

A quality billing system allows you to stack up different services as part of exciting packages. It is also possible to offer self-care feature, so that customers can conceptualize their own plans.

A top-class telecom support platform like Telgoo5 suits the requirements of most MVNOs. It lets them perform telecom billing and at the same time manage B/OSS.