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Mobile Virtual Network Operators (MVNOs) have made an enormous impact on our industry since their introduction over a decade ago.

And while many first-generation MVNOs focused primarily on discounting in the effort to gain market share, such a strategy no longer delivers sustained results. Today, it is becoming increasingly clear that low price on its own does not create the differentiation that allows MVNOs to build a profitable customer base and grow their revenue.

So what other options are available to these companies to remain viable and to succeed?

With MVNOs further increasing their focus on customer experience, these companies are feeling the crunch. In order to gain a competitive advantage, they want to differentiate their business more, while keeping their costs down via operational efficiency, flexibility and adopting lean strategies.

MVNO focus areas like emerging niches such as device bundles, data-only and MVNOs focussing on small and medium-sized enterprises.

MVNOs launching new disruptive products and business models

  • The most popular new services to rollout are new technologies (4G or WiFi), and new applications.
  • The evidence is that MVNOs have been rolling out 4G / VoWifi offerings steadily over the last few years.
  • No pricing and scalability barriers typical for traditional HSS products.
  • This innovation is about freeing the MVNO to innovate more than if it were tied to MNO models.
  • This can be as simple as using effective platforms to refresh and innovate offers or can involve an entirely new operating model. For example, OTT services such as virtual numbers mean that MVNOs are free to become completely virtual – not even requiring a SIM card.