Why MVNOs must embrace innovation to stay ahead of the curve

Why MVNOs must embrace innovation to stay ahead of the curve

One of the most effective ways to grow their business is for Mobile Virtual Network Operators (MVNOs) to offer a wider range of products. Telesperience research into the MVNO market has shown that many MVNOs are moving beyond simple telecoms products and discounting strategies to increase their revenues and differentiate from competitors. In fact, the research shows that just over half of MVNOs (54%) have identified offering additional products as a key growth strategy.

A focused product offering

MVNOs intend to differentiate and stand out among the competition by offering a breadth of products and by developing unique products – products that customers cannot source elsewhere. Since European new customer growth has become stagnant, upselling and cross-selling a variety of products to current customers is a valid growth strategy. However, for it to be effective, MVNOs must ensure that their strategy is within the context of customer experience and customers’ requirements. In other words, the products and solutions they offer need to be laser focused on meeting the needs of their target demographics and aimed at concentrating the spending of these customers.
Any product-focused differentiation strategy is predicated on the ability of the MVNO to rollout new products reliably, cost-effectively and quickly. To do this they need to ensure that the systems they use to support product rollout – whether their own or those provided by an MVNE or MNO – are flexible and agile enough to support their strategy.

Third-party products hold the key to a unique product offering

Going forward, the need to accommodate a far more dynamic, collaborative and combinational approach to products in order to compete with rivals will become essential. As competitors begin to assess and access products from third parties (for example, content, games, applications and so on) in order to broaden their product range and create more novel or sophisticated solutions, MVNOs that seek to use products as a differentiator will need to consider how they too will take advantage of third-party products.
In the future, product-centric innovation will not just come from the MVNO or the MNO supporting it, but from partners and even customers themselves, who may want to mashup or blend products into unique solutions or bundles. This type of self-bundling provides customer stickiness and ensures that customer needs are more precisely met. But to be successful, this strategy requires a high level of automation, as well as accuracy and flexibility in ordering, fulfillment and billing systems.

ALWAYS BE IN THE KNOW

* required fields

What the future holds for MVNOs

The research revealed that MVNOs intend to concentrate on adding specific key types of products in the next five years. The two most popular products they intend to rollout are new technologies – typically 4G or Wi-Fi, as well as new applications.

One-third of the MVNOs we talked to said that innovating faster than their rivals was essential for future business success. The key to success with a product-based differentiation strategy wilvl be having an infrastructure that can support rapid product innovation and rollout, rather than one that will hamstring their plans.
To find out more about the MVNO market and how MVNOs can utilize key growth strategies, listen to our recorded webinar.

Why MVNOs must embrace innovation to stay ahead of the curve