Reseller MVNO (Branded Reseller)

A reseller MVNO will either operate under its own brand or co-branded with the mobile network operator (MNO). In most cases, the branded reseller brings a brand, distribution channels and/or a large existing customer base to the table, from which it can leverage its sales.

It is often the easiest MVNO type for a host network operator (HNO) to accept, as the HNO stays in control over most of the processes. The Reseller MVNO, possesses no core elements and only holds the means that ensure the contact and relationship with the customers.

Advantage

Time to market and low startup costs as no investment in MVNO infrastructure is needed, the mobile network operator (MNO) will handle most of it.
Use the MVNO (telecom) to drive an uplift in the core business.

Disadvantage

No control. Customers, user data, post-sale interaction, SIMs, and infrastructure belongs to the mobile network operator (MNO),who is also responsible for the setting of tariffs. Revenues from incoming traffic (Interconnection) belongs to the MNO.
The brand may not translate well to mobile
The branded reseller may have an interest in more control but often lack in telecom experience. Taking share from the other established mobile network operators and MVNOs in the market is difficult without a solid understanding of the mobile industry and economics.

Operational Model / MVNO Architecture

The reseller MVNO is primarily responsible for the costs of marketing, sales, and distribution.
See: MVNO Types and Operational Models

MVNO Business Model (Branded Reseller)

Revenues: Revenue sharing with the mobile network operator (MNO). Typically, a certain gross margin over the existing retail offer from the MNO, and in some cases receive a commission per active subscriber acquired.
Costs: Marketing, sales, distribution.

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Author: Allan Rasmussen

Managing director at Yozzo. Allan is a MVNA/MVNE/MVNO specialist with hands-on experience from more than 60 projects in both competitive and greenfield markets. His expertise includes business case development, execution, launch and growth strategies. Advisor and consultant to mobile network operators, MVNA, MVNE, MVNO, National Regulatory Authorities, Government Agencies, Broadcast Companies, TMT Industry Associations, Innovation and Investment Banks.

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