The mobile telecom industry is intricate and filled with several players. It might occasionally be challenging to comprehend what they actually accomplish and how they bring worth. MVNOs will be able to build B2B and B2C services and will have access to cheaper rates in the telecom wholesales sector. They can, for instance, develop exclusive deals for IoT. (data only). The MVNO will charge the customer. In actuality, the MVNOs are mostly just a different MNO brand. MVNAs rely on the MNOs they collaborate with. For instance, it’s doubtful that an MNO will want to engage closely with MVNAs if they wish to have direct contracts with each MVNO they enable.
The modern-day telecom industry is going through transitions faster than ever before. Addressing the demands of finicky customers, fighting off the competition at every step of the way and countering the threat of OTT platforms is proving too much to handle for even seasoned telecom operators. This is the main reason why they are trying to maximize their outreach in every way possible. As a result of their efforts, new platforms for telecom service delivery have being created in the form of: MNO, MVNO, MVNA, and MVNE.
Why MVNOs Have Become so Popular?
While an MNO
(Mobile Network Operator) builds his operation from the scratch and make
investments in creating network infrastructure, radio frequency spectrum, HLR,
VLR, BSC, MSC, OSS etc., an MVNO (Mobile Virtual Network Operator) receives
frequency spectrum and network resources at a cheaper rate from MNOs (Mobile Network Operators). This allows it
to sell its telecom services at a lower rate and attract new customers.
An MVNO does
not have its own network but uses a network from a carrier or MNO. An MVNO can
be a full MVNO with its own HLR. Such MVNOs only use an MNO’s radio base
stations for providing 3G, 4G or 5G services. On the other hand, a light MVNO
mainly focuses on relations with
customers along with marketing and billing. It does not have its own HLR.
Whether full
or light, to become MVNO you need
good marketing skills and a unique idea that differentiates you from other
players in the market. You can either specialize in mobile data and become a data MVNO or earn your stripes in
providing voice call services. But whatever you do, make sure that you are
excellent in the niche that you have chosen. Good customer relations and the
ability to attract new customers are essential for any MVNO to succeed.
The Importance of MVNE/MVNA Partnership for Overcoming Challenges
As MVNOs are
considerably smaller than a full-fledged MNO (Mobile Network Operator), they
need support from MVNEs (Mobile Virtual Network Enablers) to get their job
done. A capable MVNE with a comprehensive MVNO
software solution like Telgoo5 can provide the following benefits to an
MVNO:
Better billing – Billing is probably the toughest task for an MVNO to undertake
all by itself. Any mistake or inefficiency in billing tasks can have a major
bearing on MVNO subscribers. But when you partner with an MVNE like Vcare, you
get access to a cutting-edge MVNO
billing software solution. With a convergent billing solution by your side,
you can create itemized bills with details of all types of services used by
your subscribers.
Profitable deals with MNOs – Partnership with a competent MVNE/MVNA can
help you get better-priced deals with an MNO. This will allow you to deliver
the services at a lower rate to your MVNO
subscribers while still making a profit.
Avoid red tape – Running a successful MVNO operation requires you to get into contracts
with different carriers and vendors. By partnering with a competent MVNE like
Vcare (who already has fully-licensed platforms and contracts with vendors),
you are able to bypass the process of signing new deals, thereby saving
considerable time and effort.
MVNO, MVNA, and MVNE are fairly new entities in the telecom world with each having their own role in imparting telecom services. These new entities were created to address the demands of customers whose requirements were not fulfilled by MNO (Mobile Network Operator).
The establishment of MVNO addresses the requirements of specific customer bases and at the same time allows MNOs to make revenue from subscribers who are not using their services directly.
1. MVNO – An MVNO is a player in the telecom market who does not have its own radio access network. It either buys access to the network services at a bulk wholesale price or gets into a direct reseller agreement with an MNO. After procuring the services, the MVNO sells them to its own subscriber base. As an MVNO has obtained the services at a reduced price, it has the luxury of selling them at a price that is lower than the market price.
By packaging his services innovatively, an MVNO is able to attract certain specific customer bases, which were unreachable for its partnering MNO. For example, it has been seen that the economical services offered by MVNOs are extremely popular amongst people in lower income groups (who cannot afford pricier MNO services).
MVNOs are divided into three categories based on the resources available to them:
a) Skinny MVNOs: Have their own content applications, SMSC, voice mail, Prepaid and VAS.
b) Thin MVNOs: Apart from the above mentioned services, they also have EIR, share or own HLR, AUC and IN.
c)Thick MVNOs: Apart from the above mentioned services, they have VLR and MSC.
2. MVNE: Mobile Virtual Network Enabler (MVNE) as the name suggests is responsible for enabling a network, so that an MVNO can provide its own services.
It provides the necessary infrastructural tools to the MVNO along with charging rating and billing for a wide variety of telecom-related services. It helps an MVNO accomplish tasks like provisioning, administration along with offering essential OSS/BSS services.
It also offers capital expenditure deferral to MVNOs and allows them to focus on customer service and brand awareness, loyalty, product enhancement, and marketing. With an MVNE partnership, an MVNO no longer has to keep on worrying about how his backend services are managed. Running an MVNE service is a complex task, which comprises COTS (commercial off-the-shelf applications) along with multitenant business model conversions.
3. MVNA: MVNA (Mobile Virtual Network Aggregator) is a business model that comprises wholesale of an operator’s airtime and routing of traffic over the MVNE’s own switches. While an MVNA has individual contractual relationships with its MVNOs, an MNO has a contractual obligation towards its MVNAs. So, it won’t be wrong to say that an MVNA forms a link between MVNOs and MNOs.
As an MVNA represents many different MVNOs and buys large amount of telecom services from an MNO, it is able to receive telecom services at a considerably reduced price point. Hence, an MVNA partnership allows an MVNO to receive radio access network for far less that it would have been possible during a direct purchase.
Inference of These Telecom Entities in Modern Times
These new partnerships between MNOs, MVNOs, MVNEs and MVNAs are designed to share the burden of serving a wide customer base. These new business models ensure that basic telecom services are enjoyed by maximum number of subscribers. In this age of increased competition, the quality and coverage of telecom network is maximized with the inception of these new entities.
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