MVNOs, or Mobile Virtual Network Operators, are becoming more and more common throughout the telecoms market. The model of working has become popular due to the fact it doesn’t need an existing wireless network infrastructure to provide services for its customers. Instead, it relies on purchasing bulk access to an existing network structure and setting a retail price independently. MNOs can also use their existing infrastructure to create and launch MVNOs to target different subscribers, going beyond connectivity to deliver differentiation through innovative mobile propositions.
With the pressures on the telecom market in 2022, including external economic, political and security uncertainty, it might seem too risky a time to launch a new network. There are however benefits, which far outweigh these perceived risks.
Specific Targeting
One of the key benefits MVNOs have is the flexibility to target very specific demographics and offer them a service tailored to their highlighted needs. While this ability has advantages for new networks, it has proven invaluable to existing MNOs. MNOs are able to launch sub-brands via MVNOs that can reach a whole new set of customers under a new name and service proposition. This allows MNOs to capture a whole new set of consumers, without risking those already attached to the network. As customers demand more and more flexibility it will be no surprise to see larger MNOs launch a wider range of MVNOs and reap the benefits of being able to capture new and diverse audiences.
Incorporating New Technologies
Throughout 2022 and beyond there will be a range of new technological advantages hitting the market. These latest developments will help shape and expand the offering from MVNOs. eSIM technology is predicted to have substantial growth in the coming years. This piece of technology replaces the physical sim card within a device with one already integrated into the technology. As a result, it offers consumers an easy way of switching out network providers without the need to install a new physical sim card. For MVNO this will be extremely beneficial as consumers will be able to switch networks with ease, or even host two different providers on the same phone, allowing them to choose a network more suited to their needs within a certain time frame or location. For example, an MVNO could position itself as the go-to for travellers through a certain country, using e-SIM to quickly and easily onboard them onto the foreign network, and grow a healthy revenue stream from this audience, but not needing to charge as much as traditional roaming charges.
Another evolving technology poised to be extremely beneficial for MVNOs in the coming months is AI and automation. These technologies will be deployed more rapidly and across a greater section of businesses throughout the coming months and years. These technologies will allow businesses to gather and process more and more data, even quicker. The technology can also be paired with a number of other applications within a business, such as chatbots or invoice processing. The benefits of this for an MVNO will be priceless. It allows them to manage a vast number of subscribers with a relatively small team of employees. They can also use the data processed from customers to offer them the best deals and incentives, at just the right time, to ensure they stay happy and contracted to the network.
With 2022 being a critical year for the acceleration of 5G, it can come as no surprise that MVNOs now stand poised to build on the success of the deployment. With the ever-growing access to 5G networks, MVNOs will be able to capitalise by adopting network slicing which will allow them to monetise 5G access. The technology will allow MVNOs to offer differing slices of a network to different subscribers at differing price points. These slices can even be limited by times or locations. This creates an opportunity for MVNOs, who can offer a range of new products and services, built on the differing network slice offerings, without needing to operate on a different physical network. Some examples of the new services MVNO could offer include the streaming of content, business to business packages or uploading speeds. The MVNOs currently operating, in this year or next, will be perfectly placed to position themselves as 5G focused and as such, perfectly placed to capitalise on network slicing.
Market Expansion
Smartphones and devices may be commonplace for you and I, there are however many places around the world in which these devices are less common. The amount of smart devices on the market is only increasing and as a result, more and more territories will see a greater spread of smart technology throughout the population. As a result, there is an opportunity for MVNOs to expand into these areas, offering low-cost networks to suit the needs of the local populations. The expansion of networks within these areas has the potential not only to be profitable for MVNOs but beneficial to those who live there. As we know integrations of smart technologies have the potential to create and increase access to healthcare, education and the opportunity to join certain industries.
Beneficial to society
The flexibility of MVNOs will also be a benefit for both brands and consumers in 2022. The pandemic has brought on more hardship for many, coupled with the predicted increases in inflation and household bills around the world, many people will be looking for more affordable phones and flexible contracts. Within this space MVNOs have a real chance to help families, start-ups and smaller companies by offering more affordable, tailored packages to alleviate their customer’s financial pressures. By helping start-ups and smaller businesses they are also able to help them move ahead in their fields and contribute to local economies. MVNOs can also funnel funds to charity or ecological causes. One example is the MVNO Ecotalk mobile, which channels funds to buy land and give it back to nature. A flexible BSS and real-time charging are essential to create and leverage these strategies.
Lifecycle has worked with a range of partners to help develop innovative new MVNOs from conception right through to launch. We also work with established brands and their existing customers to seamlessly integrate them with their membership schemes. We also help existing brands update their technology and migrate existing customers with minimal impact to the end-user.
Our range of flexible and agile solutions support a multitude of costing options and products enabling the delivery of unique propositions in record time. If you are ready to reap the benefits of launching an MVNO and would like to see how Lifecycle can help develop or expand an existing MVNO please get in touch.
You can also download our “5 Steps to Launching an MVNO” here.