So you’re all set to blaze your way through the saturated mobile market. MVNOs do sound risky. Right? Well, you’ll just discover what you should take care of before you set up an effective MVNO. That is, without spending a bomb!

Everybody wants to establish themselves as the next path-breaking MVNO. You probably feel that your business model is razor sharp. And that it will pierce its way through. And if you’re like most, we are sure you’ve already come up with a strategy to target that untapped market, and win the lion’s share.

But.

Wait.

As an expert on setting up MVNO’s, we have encountered several key problems. Problems that companies and even consultants don’t pay adequate heed to, when setting up their MVNO.

These Are Exactly the Problem Areas That May Lead You to:

  1. Shutting down your MVNO, packing up, and going home!
  2. Or laughing your way to your bank as a profitable niche player

Give us a minute to give you a better picture!

You do have the terrific potential to make it as a great MVNO. Believe us. And even if you don’t, all you’ve got to do is focus on these key problem areas, to stay right on track.

5 Things to Consider When Taking up Your MVNO Challenge:

As a word of caution, we advise you to stay realistic and grounded. Regardless of how perfect and predictable your business plan may seem.

MVNO

  1. Branding – Your brand and your business model come first. Nail it head-on before you proceed!
  2. Start with identifying a profitable niche – Think through and think far. Based on available evidence. Try to choose a segment where the competition isn’t one where the winner takes it all.
  3. Pricing is key – Offer value-added services to offset low entry-level pricing.
  4. Outsource your way to the top – Form strategic partnerships and alliances. Hire experts and consultants who know their job. And focus on your business. Rather than just making it all work together!
  5. Future planning – Think of scaling up and monitoring wireless service delivery, well in advance. So costs don’t increase exponentially as you scale your MVNO.

We know you may find this rather simplistic.

But it is said, that even simple things, when overlooked, can cause complex problems. And often the solution to a complex problem may be rather simple indeed!

According to Cisco® Visual Networking Index (VNI) Global Mobile Data Traffic Forecast Update, “Global mobile data traffic will increase nearly eightfold between 2015 and 2020.”

Why Should You Consider Outsourcing?

According to Cisco® Visual Networking Index (VNI) Global Mobile Data Traffic Forecast Update, “Global mobile data traffic will increase nearly eightfold between 2015 and 2020.”

Are you all set to face this mighty new landscape? Especially, when there is a range of options available.

You may have a discounted service plan. Or you might be targeting a niche area and squeezing in some advertising cash as well.

Well, why not take advantage of your parent Mobile Operator Identity (MOI) (the established Brand) who provides you the infrastructure.

You see, this is not as easy as it might sound. All this without the support of the right Mobile Virtual Network Enabler (MVNE). It might leave you all drained out and puffing.

So How Can a Partnership Help You Guarantee Long-term Success?

  • You can deliver value-added, innovative services to end users. Your customers will perceive higher service value in fact.
  • New markets will open up, as you differentiate yourself. You can raise how much you get paid for per customer. In other words, the Average revenue Per User (ARPU).

Why not learn about the different types of alliances. Technically known as an MVNE (Mobile Virtual network Enabler), your partner can enable the network for you and provide business support.

Here Are Some Ways You Can Form Lasting Partnerships:

  • At the outset, you have the Mobile Virtual Network Aggregators (MVNAs) who will take care of back office tasks. They will help you effortlessly bundle services for your advantage too.
  • Sometimes, you might get an MVNA who is very closely aligned with your business goals. You might well outsource end-to-end services and relax as your cash flow starts trickling in.
  • Or go for specialized services, like messaging or billing to focus on your in-house activities.
  • While you talk to the customer, your partner can manage the basic CRM structure.

This way, you have less at stake, earn faster dollars and serve customers better. 

Here’s What the Most Responsive MVNOs Do to Stay at the Top:

When in the market you obviously have to position yourself well. That is to say, understand needs of your consumers in the real sense. Be simple, reliable. Have a clear segment in mind. And finally, make cost-effective offers. Know that you have differentiated as well as a newcomer in this way.

As you go, keep in mind that the most responsive MVNOs are the most responsive for obvious reasons:

  1. Most times when you start out, you will give in to the low-cost idea. Go in this way and you are bound to enter the competition as you expand. Have a plan in place, for this will happen.
  2. You have it all setup with compelling partnerships. Everything seems to go well. Beware. You might fall short of funding anytime. Are you prepared well to maintain positive cash? Evaluate.
  3. Consider your resourcesemployees and assets. Are you able to track progress and milestones proactively? Ensure that the value you create for consumers is unlike any other available in the market.

Being responsive as a fast-paced growing MVNO is the key to success. And that is exactly how you can expand right, left, and center even when the markets crash and businesses tank.

Ever been in the midst of the whirlpool trying to figure out what works best? Did we enliven a previous experience you had?

Personally, we feel you’re better off establishing an MVNO rather than building your very own infrastructure. Although both do have their fair share of advantages and drawbacks.

What do you feel? MVNO or no-MVNO?

Share your thoughts in the comments section below.

P.S. If somebody is looking to form an MVNO, it might help to spread this blog post around.