Service Provider MVNO (Thin MVNO)

The service provider MVNO (Thin MVNO), will operate under its own brand. In best cases, the MVNO brings a concept, brand, distribution channels or a large existing customer base to the table, from which it can leverage its sales, or differentiate from the competition.

Advantage

Self-owned SIMs, customer ownership and relationship is possible, as well as some ability to set tariff bundles and packages independently from the retail prices set by the host network operator, depending on the wholesale agreement model (retail-minus, cost plus. capacity-based, etc.)
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.

Disadvantage

Costs on OPEX and CAPEX associated with the IT platforms.
Limited access and control to network routing capabilities.
Owns the customers and SIMs, but not the International mobile subscriber identity (IMSI).

Operational Model / MVNO Architecture

The Service Provider MVNO (Thin MVNO), is normally 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.
See: MVNO Types and Operational Models

MVNO Business Model (Service Provider)

Revenues: from traffic of its own customers (owns the customers, but not the IMSI’s)
Costs: Wholesale rates, marketing, sales, distribution, OPEX/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).
Revenues from incoming traffic (Off Net) would typically belongs to the host network operator (HNO).
In some cases, revenue might be shared with the HNO, i.e. a certain gross margin over the existing retail price offer from the HNO.

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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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