Reseller MVNO (Branded Reseller)

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 to get a mobile network operator (MNO) to accept, as the MNO stays in control over most of the processes.

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
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’s expertise includes the development and execution of growth strategies, market insights, trends and opportunities, new business models and strategies
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