MVNOs (mobile virtual network operators), known as low-cost resellers, are expected to offer futuristic and personalized mobile experiences. But their full reliance on host networks leaves them stuck with generic services and limited growth. Meanwhile, hyper-targeted DTC brands and tech-driven telecom operators are setting new bars. Those days are long gone when it was just about cheap plans; today, it’s more about quality networking. In this blog post, we will explain why custom core network solutions are mandatory for MVNOs to lead the telecom industry.
Limitations of Legacy Core Network Models for MVNOs
There is no doubt that the existing core networks’ hardware and software have been effective for MVNOs so far. But with a massive increase in the number of users, the legacy solutions are unable to support them. Also, due to the rise in customer expectations and a breakout in the niche market, network operators need upgraded systems. Below are some drawbacks:
- Bounded Autonomy and Innovation: Being dependent on the host MNO’s core network limits access to traffic, policy, and service features, which cripples MVNOs’ ability to innovate independently.
- No Differentiation: Standard core platforms of MVNOs can’t offer new services to particular segments like students, travelers, or enterprises.
- Slow Launch in the Market: If you’re launching new products such as data-only SIMs, multi-IMSI eSIMs, or private network options under legacy infrastructure, it can take months.
- High Operational Costs: As we can’t configure core functions of outdated devices, MVNOs often have to spend more on bandwidth, infrastructure, and support.
- Misses Monetization Opportunities: Limited core capabilities have no space for flexible pricing, tiered services, or value-added packages that boost ARPU.
What Are Custom Core Network Solutions?
These are the bespoke networking frameworks engineered to fulfill the unique demands of an enterprise. The whole process involves the design, configuration, and deployment of a solution. Moreover, they are end results of advanced technologies, such as cloudification and network slicing. Here are some aspects that set custom core solutions apart from basic ones:
- Cloud-Native & Software-Defined: Responsive, scalable, and super fast. You can launch services in days.
- Modular Architecture: They are usually integrated with the functions you need for your network.
- Core Components: Home Subscriber Server/HLR (user authentication), GGSN/PGW (data gateway), PCRF (policy control), and IMS (VoLTE and messaging).
- Flexible Setup: You can select between on-prem, private cloud, or SaaS based on which one suits your business model the most.
- No More Shared Limits: In contrast to white-label or shared-core setups, custom cores allow you to define policies, pricing, and features on your terms.
Advantages of MVNO-Owned Custom Systems
“In telecom, control is currency.” In the case of mobile virtual network operators, a custom core network is the key to achieving control. As the competition increases day by day, custom solutions are becoming a necessity to stay in the telecom sector. Whether you want to launch an IoT product, manage user experiences live, or unlock 5G monetization, a custom core solution can do it all. Let’s have a look at some of its benefits:
- Service Innovation: You can easily launch value-added services, IoT plans, and 5G network slices irrespective of MNO timelines. Be the first to make it in the market.
- Operational Freedom: Free network operators from legacy limitations. You can establish your own rules, pricing, and service logic with full control.
- Granular Network Control: You can regulate traffic, manage policies, and optimize QoS instantaneously.
- Real-Time Customer Information: You will have direct access to data to create hyper-personalized plans, offers, and alerts that boost retention.
- Cost Optimization: Scale on demand with cloud-native EPC/5GC, reduce OPEX, and pay only for what you use.
Strategic Considerations for MVNOs
In 2024, there were over 2000 MVNOs globally, and all of them are leveraging custom core network solutions. If you’re an MVNO who hasn’t installed these custom systems, then you should. But before that, consider the following things first:
- Build vs. Buy: First, you have to be crystal clear on the fact that you want to build your own core or purchase it from a managed service provider. Building gives 100% control but demands high investment. Buying offers a quick rollout with less risk.
- Regulatory & Interconnect Enforcement: Make sure your core network abides by local telecom guidelines, lawful interception mandates, and interconnect standards. Compliance is non-negotiable.
- Strategic Partners: Collaborate with neutral hosts, system integrators, or MVNEs that offer versatile services and technical expertise.
- Migration Planning: Plan for a phased migration from your legacy setup to avoid service errors.
Risks and Challenges
It’s a great choice for MVNOs to use a custom core network solution for their operations, but it comes with a fair share of risks and challenges. If you’re thinking of making the leap, here are the key pitfalls to watch out for:
- Upfront Investment & Skill Gap: Custom core network systems demand big capital investments and a team of network engineers, DevOps teams, and security experts.
- Always-On Operations: It requires 24/7 monitoring, updates, and troubleshooting. One slip can cost you thousands of customer trust and uptime.
- Vendor Lock-in Trap: If you choose a private vendor without modular architecture, it can compromise future flexibility and lead to long-term costs.
- Security & Legal Issues: Your core must support lawful interception, ongoing monitoring, and data protection.
To Summarize
In today’s telecom world, plug-and-play strategies do not work anymore. Telecom MVNOs need custom core network solutions to have a unique USP. It gives you the freedom of a strong connection, control, innovation, and customization. If you’re looking for telecom software solutions and a consultancy provider, then nobody knows the telecommunication sector better than ComCode. We have years of expertise and technical knowledge in building custom core network solutions. We will help you step-by-step in the transition of dependency into differentiation. Reach out to us for more information and get a free quote.
