Service Provider MVNO (Thin MVNO)

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