Enhanced Service Provider MVNO

Enhanced Service Provider MVNO
Operates under its own brand with its own SIM cards, and can obtain its own numbering range/mobile network code, although not completely independent from the host operator, the MVNO can add its own value added services, to leverage sales, or differentiate from the competition.
Advantage
  • Self-owned SIMs, customer ownership and relationship, as well as the ability to set tariff bundles and packages independently from the retail prices set by the mobile network operator (MNO).
  • Use the MVNO to capture share in the mobile market and generate telecoms revenues -or to drive an uplift in the core business (bundles).
  • Focus on addressing a particular niche or segment.
  • The MVNO can add its own value added services (VAS) platform to upsell or differentiate from the competition, on apps, data, and content services.
Disadvantage
  • Costs on OPEX and CAPEX associated with the IT platforms.
  • Interconnect and IMSI comes from and is controlled by the mobile network operator (MNO).
  • The MVNO cannot negotiate traffic wholesale interconnection agreements with other operators.
Operational Model / MVNO Architecture
  • The Enhanced Service Provider is responsible for the customer care processes, including the customer relationship management (CRM), support, billing processes and billing platform (BSS), tariffs, bundles and promotion packages, costs of marketing, sales, and distribution, as well as the OPEX and CAPEX associated with the IT platforms.
  • Some may own their own home location register (HLR), which allows control of the Mobile Station International Subscriber Directory Number (MSISDN) which is a number used to identify a mobile phone number internationally.
  • See: MVNO Types and Operational Models
MVNO Business Model (Branded Reseller)
  • Revenues: from traffic of its own customers
  • Costs: Wholesale rates, marketing, sales, distribution, OPEX and CAPEX associated to the IT platforms.
  • Wholesale rates may vary with the type of Voice/Data/SMS/MMS e.g. On Net or Off Net, National or International (Origin/destination).

 

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Author: Allan Rasmussen
Managing director at Yozzo. Allan’s expertise includes the development and execution of growth strategies, market insights, trends and opportunities, new business models and strategies
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