What are MVNOs? Benefits, Challenges, Services and Success

What is MVNO and why is it important? 

Mobile Virtual Network Operators (MVNOs) are proliferating in the telecommunications service provider market by utilizing existing wireless network infrastructure. MVNOs, which are companies that provide mobile services but do not own the wireless network infrastructure themselves, buy network capacity from Mobile Network Operators (MNOs). By buying network capacity from Mobile Network Operators (MNOs), MVNOs have been able to swiftly rise in the market through a business model that passes these savings down to the consumer.

However, competition has picked up immensely in the MVNO market, which has created the need for greater differentiation in order to remain competitive.

Benefits of MVNO

From the consumer side, MVNOs can provide more competitive offerings, which means lower costs without compromising on service. Utilizing network capacity without having to own it frees up costs that are then passed down to the consumer.

MVNOs can also offer a more tailored-made service versus MNOs, which tend to offer more of a generic service that suits the masses. Through segmenting the market, offerings can be tailored for different consumer needs, such as offering better international rates for frequent out-of-country callers, for example. This allows MVNOs to take on true unique value propositions to differentiate themselves from competitors.

MVNOs also typically tend to provide a better customer experience since it is focused primarily on providing a service rather than maintaining networks.

Challenges in the MVNO space

While the benefits of MVNOs are clear, the path to a successful launch isn’t always. MVNO startups can see initial success, but managing the complexity of the technology, while remaining competitive and scaling wisely – all while remaining profitable – can sometimes create too many challenges to overcome.

One crucial element in an MVNO being successful is the ability to be agile and adaptable. As the mobile market and opportunities change, so needs the MVNO. Take the MNO market, which has been sluggish in adapting its business model which has had direct impact on MVNOs capitalizing on the market left open by MNOs. Thinking future-forward, MVNOs need to give serious consideration to agility.

Competition also has watered down the ability to sell MVNO service based on price alone. MNOs have responded to MVNO competition by shifting offerings to provide low-cost options, so MVNOs need to shift, as well, from focusing solely on the cost benefits to the consumer, but to also focus on value-added services.

Overcoming MVNO Challenges: Enabling Mobile Virtual Network for Best Success

One of the wisest things MVNOs can do when entering the market is to partner with a Mobile Virtual Network Enablement (MVNE) provider.

MVNOs can partner with MNOs to launch a brand, but the MNO offering is only partial to what an MNVO needs to be successful, lacking flexibility and the agility to bring a MNVO to market quickly.

An MVNE provides MVNO multi-tenancy, scalability, security, transparency, operational efficiency, low operating costs, and carrier capability without lock-in.

MVNO Services:

1. Consumer MVNOs: Consumer MVNOs focus on providing mobile services to individual users. They aim to attract a broad audience by offering competitively priced plans that often include personalized features such as flexible data options, family plans, and no-contract deals. These MVNOs prioritize customer service and affordability, making them a popular choice for budget-conscious consumers seeking reliable mobile connectivity.
2. Business MVNOs: Business MVNOs cater specifically to corporate clients, offering tailored communication solutions designed to meet the unique needs of businesses. These services include bulk mobile plans, enhanced security features, dedicated customer support, and tools for managing corporate communications efficiently. Business MVNOs help companies streamline their mobile operations, reduce costs, and improve productivity through customized enterprise solutions.
3. Community MVNOs: Community MVNOs serve specific groups or communities, providing mobile services that cater to the particular preferences and requirements of these segments. Whether it’s a cultural community, a professional group, or a local area, Community MVNOs design plans and features that resonate with their target audience. This could include language-specific support, special discounts, or community-focused customer service, fostering a sense of belonging and loyalty among users.
4. IoT MVNOs: IoT MVNOs specialize in delivering connectivity solutions for the Internet of Things (IoT). These MVNOs ensure reliable, scalable, and secure connections for a wide array of smart devices and applications, ranging from connected cars and smart homes to industrial sensors and healthcare devices. IoT MVNOs provide the necessary infrastructure and support to facilitate the seamless operation of IoT ecosystems, enabling innovation and efficiency in various industries.
5. Enterprise MVNOs: Enterprise MVNOs offer comprehensive communication services for large organizations. They provide advanced features such as unified communications, secure and high-capacity networks, and robust management tools to support extensive enterprise operations. These MVNOs focus on delivering reliable and scalable solutions that enhance internal and external communications, support business growth, and ensure operational continuity for large-scale enterprises.
6. Reseller MVNOs: Reseller MVNOs operate by purchasing network capacity in bulk from Mobile Network Operators (MNOs) and reselling it to their customers. These MVNOs typically focus on cost-effective solutions, providing basic mobile services with minimal additional features. They appeal to price-sensitive consumers looking for straightforward and affordable mobile plans without the frills of more comprehensive service providers.
7. Specialized MVNOs: Specialized MVNOs target niche markets with specific needs, offering tailored mobile services that cater to particular demographics such as seniors, students, expatriates, or travelers. These MVNOs design unique plans and features, such as emergency assistance for seniors, student discounts, or competitive international calling rates, to address the distinct requirements of their target audiences, providing value through focused and customized offerings.
8. Global MVNOs: Global MVNOs operate across multiple countries, providing international mobile services that ensure seamless connectivity for travelers, expatriates, and multinational businesses. These MVNOs offer competitive roaming rates, global coverage, and the convenience of using a single mobile plan across different regions. Global MVNOs cater to the needs of customers who require reliable and affordable mobile services while frequently moving between countries

MVNO Types:

1. Reseller MVNO: Reseller MVNOs purchase network services wholesale from Mobile Network Operators (MNOs) and resell them to their customers, often focusing on providing cost-effective mobile plans. These MVNOs typically do not add significant extra features or services, making them a budget-friendly option for consumers who seek straightforward mobile connectivity without additional complexities.
2. Service Provider MVNO: Service Provider MVNOs offer a broader range of services compared to Reseller MVNOs. In addition to reselling network capacity, they provide customer support, billing, and potentially some value-added features. This type of MVNO aims to enhance the customer experience by offering more comprehensive service management while maintaining competitive pricing.
3. Enhanced Service Provider MVNO: Enhanced Service Provider MVNOs go beyond basic mobile services by incorporating additional offerings such as custom applications, content services, and enhanced customer experiences. These MVNOs differentiate themselves by providing unique features and innovative solutions that add value to the standard mobile service, attracting customers who seek more than just connectivity.
4. Full MVNO: Full MVNOs manage almost all aspects of the mobile service, including issuing their own SIM cards, handling customer service, billing, and creating their own mobile plans. They rely on MNOs solely for the underlying network infrastructure. This comprehensive approach allows Full MVNOs to maintain greater control over their offerings and customer relationships, enabling them to deliver highly customized and responsive services.

KORE MVNE helps MVNO differentiate

As mentioned before, value-added service, as well as flexibility and agility in an ever-evolving market are what will separate MVNOs as competition becomes saturated. KORE MVNE services offer a wide range of value adds to support the overall customer experience, including SMS content, voicemail, and real-time charging.

Additionally, KORE provides a low-cost opportunity to deliver services built and hosted on our network-independent, multi-tenant MVNE platform. We offer a network that provides stability, scalability, redundancy and control, as well as management and monitoring the entire operation of provided services 24/7.

Want to learn more about what KORE can do as an MVNE? Check out this great information in the practical steps to becoming an MVNO.