The need for evolution: MVNO requirements drive MVNEs forward

The need for evolution: MVNO requirements drive MVNEs forward

Many MVNO companies initially created a disruptive market entry through plain and simple discounting strategies, sometimes combined with targeting specific customer niches and building offers around these (for example, diaspora communities or travelers looking to reduce the cost of expensive international calls or roaming).

However, the first wave of MVNOs ended with considerable market fallout, the peak of which coincided with the start of the European economic downturn. As the market improves, rather than concentrate on survival, which has been the case for the last few years, MVNOs are now looking to rapidly expand their business.

Increasing the sophistication level

In order for MVNOs to retain and grow their customer base, expansion requires more sophisticated approaches beyond simple discounting. This, in turn, challenges both MVNOs and Mobile Virtual Network Enabler (MVNEs) to deliver enhanced infrastructures that can support MVNO growth plans. For those MVNOs providing their own infrastructure, a wave of system renewal is already underway to accommodate new requirements. However, those using an MVNE risk being left behind, unless their MVNE also rolls out new features and functions.

Three essential ingredients

According to Telesperience-Amdocs research, MVNOs have identified three secret ingredients to their future success. These systems-based requirements include agility, control and personalization.
MVNEs therefore need to consider whether their existing infrastructure delivers against these needs. Is it agile enough to accommodate frequent change? Does it provide the billing, charging and control features that MVNOs have identified as essential to differentiate their offerings to their customers? Plus, can MVNEs help their MVNO customers deliver more personalized services, including the ability to support the “selfie” generation who want more control and more ability to self-bundle, self-configure and self-order?

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Good news for MVNEs

There is good news for MVNEs. Sophisticated capabilities are available to support both B2C and B2B MVNO customers. There is no need to reinvent the wheel, and new features can be rapidly deployed to delight existing customers, as well as attract new ones. Additionally, using their scale advantages they can access far more powerful systems than smaller MVNOs could ever hope by going alone. Picking the right system is an essential differentiator between rival MVNEs; more significantly, the right system also differentiates an MVNE offering from such infrastructure sourced directly by the MVNO (for example, home-grown systems and cloud-based systems), which are likely to remain the biggest rivals to MVNE offerings going forward.

To find out more about the MVNO market and how MVNOs can utilize key growth strategies, click here to listen the full 1-hour webinar recording. Learn more, download our complimentary MVNO Market Review 2015-16 white paper.

The need for evolution: MVNO requirements drive MVNEs forward