With the space crowding up fast and big players jumping in, the challenges quickly grow more complex. Virtually any product, device, or service today requires a mobile strategy and a mobile application strategy—and organizations that can provide a service not being offered now will have a first-to-market advantage. As more businesses establish themselves as MVNOs and look to exploit new digital business opportunities, they still will be trying to mimic the core utility provided by a standard network operator.
Many of those newcomers will need to deal with billing and personal information security, develop a degree view of the customer, and have a plan for solving both big business strategy challenges as well as customer-level problems.
Meanwhile, established carriers and legacy MVNOs will have the advantage, having fine-tuned their operations over the years. Operating as an MVNO has business implications as well. Administratively speaking, accounting, finance, tax, and regulatory issues abound for telecommunications and related companies. A new entrant into this space usually assumes most of the same filing, compliance, and regulatory issues that a full-blown standard carrier faces. Tax and regulatory compliance alone can be a daunting undertaking for the uninitiated.
Strategically focusing on backroom operations and approach is just as critical as the market facing initiative. One strategic detail that represents a bit of a question mark, for now, is pricing. MVNOs today can employ a variable-cost model for each additional minute or megabyte of usage. As data and points of data transactions grow, as business models evolve, and as new players get into the MVNO space, many pricing uncertainties remain. The MVNO space stands to see new models for how all players—from device sellers to IoT intermediaries to major carriers—price and bundle their products and services.
New entrants to the MVNO market need to have well-defined and detailed business plans and strategies. With robust wireless networks across much of North America today, connectivity is no longer the differentiator that it used to be. Operating effectively in the MVNO space requires an ability to innovate—to move faster and more skillfully than the competition, bringing forth new technology, new functionality, and new business models.
Making information and feature sets meaningful will be key. All players operating in the space—from traditional MVNOs to consumer goods companies seeking MVNO capabilities—will look to deliver previously hidden value. Many will seek to innovate with data-driven solutions that deliver insights for triggering or driving decision-making. Such solutions can allow an automated system or an individual to act on the information and deliver a benefit seamlessly to the end user.
One example: as mobile devices—smartphones and otherwise—come to replace the wallet, MVNO-enabled mobile payment functionality will present new areas for innovating.
Innovation opportunities also will arise within the various layers of a MVNO-enabled process or transaction. Identity management stands out as one potentially strong area for innovation. One individual might engage with multiple MVNOs as part of his or her job or personal life. A user might rely on one MVNO for smart home security alerts, another for automated home delivery services, another while operating company machinery, and another when using a work-provided smartphone.
As more users use more devices as part of their evolving personal and professional roles, individual and corporate users will require solutions to help manage identity, security, privacy, and sensitive information. Sign up to our weekly Newsletter Subscribe.
ITU is the United Nations' specialized agency for information and communication technology. Any opinions expressed and statistics presented by third parties do not necessarily reflect the views of ITU. Share via. Send this to a friend. Send Cancel. MEC Solution. NB-IoT Solution. Satellite Solution. Company About Us. News Company News. Chinese English. Mobile Signaling. MNO Solution. About Us. Company News. 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. 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.
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