In the early days of telecom, to launch a mobile network, you had to invest in billion-dollar towers and years of groundwork. Today, those rules have been changed. MVNOs are helping brands launch mobile services double-quick and without the need for infrastructure. In fact, over 2100 MVNOs have been launched worldwide. This model is not limited to telecom giants. Anyone who has a strong customer base and a strong business idea can do this. In this blog, we’ll share a detailed plan to build, launch, and scale your MVNO.
What is an MVNO?
MVNO stands for mobile virtual network operator. It is a wireless communications services provider that doesn’t own the network infrastructure over which it sells its services to its customers. They lease the network services in bulk from a mobile network operator (MNO) at wholesale rates, then set their own retail prices. An MVNO may have independent customer service, billing support systems, marketing, and sales employees, or it could outsource the services of a mobile virtual network enabler (MVNE).
As compared to telcos, MVNOs prioritize advertising, prices, and customer experience. For example, Mint Mobile leases networks from T-Mobile at affordable plans for its users. This model was first launched in the late 1990s in Europe, when telecom markets opened up, and new policies were implemented. Since then, MVNOs have seen a subsequent jump in the number of users by targeting niche demands like budget plans, ethnic communities, travelers, and IoT devices.
Types of MVNO Models
MVNOs are differentiated by their pledge to own and manage the operational core elements of the MVNO business model. Below are the types of MVNOs:
- Branded Reseller: It is also known as “Skinny MVNO” or “Reseller”. It either operates under its own brand name or partners with the mobile network operator (MNO). Typically, the branded reseller brings a reputable brand, distributors, and/or a big pool of customers to the table, from which it can earn profit from its sales. The host network operator (HNO) controls all the processes.
- Thin MVNO: It is also known as a “Light MVNO” or “Service provider MVNO”. It also has its own brand and is liable for the customer service, billing systems, tariffs, bundles, marketing packages, marketing expenses, sales, distribution, and OPEX and CAPEX that come with these.
- Medium MVNO: It is also known as an “Enhanced Service Provider”. It also runs under its brand name with its very own SIM cards, marketing, sales, and distribution. In some countries, you can get a unique mobile network code. It also has the power to define tariff bundles and packages different from the retail prices fixed by the host network operator (MNO). Further, it can add a new value-added services (VAS) platform to sell more than the competitors do.
- Full MVNO: The Full MVNO has 100% control over all the services and products it sells in the market, as well as freedom in design and deployment of the new services. It is technically the same as a mobile network operator but lacks a spectrum and a radio access network (RAN), which it has to lease from a mobile network operator (MNO).
Market Research & Niche Selection
Like any other business, you have to do strong R&D on it. First of all, identify your target audience. Are you offering something for Gen Z or for businesses? Once you are crystal clear on this department, then the next step is to study your competitors using a simple SWOT analysis. Check out what they are doing well, but more importantly, where they fail to deliver.
Afterwards, create a strong Unique Value Proposition (UVP). This is a sort of your “why choose us?” statement. It could be excellent internet access, cheap roaming plans, or simple digital onboarding. A specific niche is your strongest advantage.
Legal, Licensing & Compliance Requirements
Telecom MVNOs are a regulated industry. Every element has different licensing rules. For example, some countries, like India and Australia, need a unified telecom license, while some countries, like Germany and the UK, allow MVNOs under host operator agreements. So before the launch, make sure you have all the approvals in your hand.
In addition, SIM registration and KYC are vital. Every customer must be verified before activation. Apart from the legal aspect, this builds trust for your brand. Read all the data protection laws, such as GDPR or CCPA, as per your market. It is very important to handle user data responsibly because it contains sensitive information.
Choose the Right Network Partner (MNO)
Your service will only be great if you end up choosing the right mobile network operator for yourself. You generally have two options here: work directly with an MNO or operate with an MVNE (enabler). Direct deals offer better control and prices, whereas MVNEs make entry quick and simple.
Once you start negotiating, stick to wholesale prices. Avoid vague contracts that can become a rock in your path to growth. Plus, keep in mind that the network you are going to use should support strong 4G/5G coverage and the latest features like eSIM.
Develop Your MVNO Tech Stack
Inside the core of every MVNO, there are OSS/BSS systems. These manage operations, billing, charging, and customer management. Without them, it is impossible to scale the network. Further, you also require a CRM system to manage customer relationships and support. Today’s MVNOs are highly dependent on automation, so API-first platforms are necessary.
Another key component is SIM and eSIM integration. There is no doubt about this: the eSIM is the future. Therefore, your system should be equipped with it. A reliable tech stack boosts performance, reduces the margin of errors, and improves customer experience.
Branding, Pricing, Product & Market Strategy
In the MVNO market, branding is about positioning. Your brand should resonate with your niche. Try to keep your prices normal, not exorbitant. Do not confuse users with dozens of plans; 3 or 4 can be sufficient. Plus, offer additional benefits such as app bundles or free roaming to attract more subscribers. Furthermore, market yourself as an MVNO provider without exaggerating.
Use SEO, influencer marketing, and targeted Ads instead of broad advertising. Target the key feature in the form of niche keywords like “best travel SIM” or “affordable IoT connection”. If you already have a brand (like retail or fintech), use your existing customer base as your launchpad.
Launch Phase
Avoid a big-bang launch. Proceed with a soft launch with a controlled group of users. This will help you to test your system, identify bugs or billing issues if there are any, and fix them early. Monitor the performance closely, including the speed, uptime, and customer experience. They all should be above the expectations of your SLA agreements.
Scale Your MVNO Business
Once your MVNO is stable, scale it. Scaling is not just about numbers; it can be about expansion. You can break into new areas like 5G services, IoT connectivity, or M2M solutions. These categories have a high rate of growth and long-term contracts.
Geographic expansion is another way, especially if your platform supports multiple regions.
Closing Notes
Every successful MVNO you see today started with an ambition to serve customers better than anyone else. The process may look complicated, but when you do it step by step, it is achievable. If you’re ready to take that first step, reach out to ComCode Technology. We are the leading telecom software solutions and consultancy provider company that supports various service providers, such as those in the MVNOs, MNOs, messaging service providers, private LTE, private 5G, etc. We can help you launch, scale, and manage your MVNO. With long-standing experience, high-performance solutions, and round-the-clock support, ComCode promises you to keep you one step ahead of your competitors.
