Tag: mvno model

The Ultimate Guide To MVNO

The popularity of MVNOs is consistently on the rise. By 2018 there were more than 1,200 MVNOs all over the world, majority of which are in Europe. The number of MVNO clients is expected to double from 2018 to 2019. So if you are thinking of starting an MVNO go ahead. The following are reasons why you should start an MVNO.

 How MVNOs Work

MVNOs work with smaller customer groups compared to traditional mobile operators. This means their income is limited to specific segments. However, any company/individual that engages this business has the advantage of gaining other income sources. It can be a great opportunity when it is aligned with the organization’s core business.

Let’s look at the example of a branded reseller model. In this case the legacy network operator offers technical services such as customer service, billing, network functionality, customer activation and radio access. The MVNO is left to focus on communication, branding, sales and distribution, and marketing.

The model will create value proposition and a new face for clients using an existing network. A full MVNO, on the other hand, handles all functions apart from radio access. It cannot handle radio access since it does not have a license to do so.

These different models mean that revenue is divided differently. Different models mean there is no definite revenue sharing structure. Majority can be used interchangeably as long as the MVNO is operational. This is because the operator may switch from a full MVNO to a branded reseller and vice versa. 

There are Mobile Virtual Network Operators that have a revenue-sharing model that is determined by percentage of earnings. In this scenario, an operator will share a specific percentage of their after tax earnings, paid by MVNO clients. As the functions by the MVNO increases, the percentage of revenue shared increases.  

Creating a wholesale agreement with a legacy operator is another option. In this case the MVNO can purchase SMS, data and voice minutes on a wholesale basis, then resells the same to the customers. Some prefer to operate with a revenue-per-subscriber model. This is where the legacy operator pays the MVNO an agreed upon amount for every subscriber they bring to the network.

Benefits of an MVNO

MVNOs as subsidiaries of retailers have the ability to enjoy additional revenue. Earnings are increased when subscribers visit their stores to top-up their accounts, sign a new deal or have plan questions. Once a subscriber is in a store, they may make planned-but-postponed or impulsive purchases.

Retail MVNOs, as a result of knowing their clients better using newly available subscriber data, can offer products that are more relevant to their customers. Such MVNOs can offer each subscriber incentives based on their telecommunication usage and shopping patterns. The result is a higher lead to sales conversions.

Conclusion

Starting an MVNO is a good business decision. More and more telecommunication subscribers are using MVNOs. This means there is no limit to the number of subscribers you can get. If you want to start one, contact Tegloo5 today. They will provide you with the best options and support to kick-start your MVNO business.

Fact: Quality Online Billing Software Holds Key to the Success of MVNO Model

The evolution of the O/BSS system is a clear indication of the transformative changes in the telecom industry. The rise in number of technologies and a concurrent increase in the number of users have created a situation where traditional O/BSS model fails miserably. No longer can you rely on OFCS (Offline charging system) or IN for performing postpaid and prepaid billing. Today’s requirements can only be fulfilled by using cutting-edge OSS telecom billing software that employs a centralized charging system for charging and rating all services, and that too in real-time.

Stay Relevant by Employing the Right Telecom Billing Solutions

There are many telecom billing solutions that cater to the requirements of telcos. However, when you are in the market for a new online billing software solution, it can be hard to find one that will work well in the present and the future. To make this selection easy, below is a list of functionalities that you should tick before investing in a new software solution:

  1. Application Program Interface (API) – No matter how good your software solution is, there will be times when you want it to do something more. As customization and replacing the software can be a huge financial liability, you might shy away from launching a new service because of your doubts about your service monetization and billing capabilities. In these scenarios, partnering with a vendor that offers APIs for different business use cases can be a blessing. APIs can help you in meeting exigent requirements instantly. For example, if you do not have a particular partnership in place, you can install an API from your vendor to use its pre-existing partnerships.

2. Convergence in Billing – Transparency in billing is possible only if you have convergent telecom billing solutions that use a centralized charging system like an Online Charging System (OCS). An OCS charges all the services at a single location and allows you to prepare a single invoice that reflects all the usage charges for all services. Convergent billing is also beneficial for your customer care department as they are able to access all the records of customers from a single location and resolve queries in a better way.

3. Scalability – Your billing requirements may skyrocket at any given instant. And, if this happens and you are not prepared to scale according to the rising needs, you are likely to incur losses or go out of business. Therefore, you should ensure that your vendor is able to provide multi-tenant and scalable OSS telecom billing software.

4.  Reporting and Analytics – Gone are the days when you could use guesswork to create strategies. In today’s highly competitive world, any wrong strategy can put your business in jeopardy. Therefore, you require concrete insights, which can be delivered by an analytics-powered telecom billing solutions. Also, you should partner with a vendor that can provide you complete reporting of all the transactions, so you can analyze your work better. At the least, you need a slave database that is updated by a master database like the one offered by Telgoo5 – a popular telecom billing software.

5. Safety of Data – A telecom operator or a virtual operator that adheres to any type of MVNO model simply cannot afford to lose business-critical subscriber data. Therefore, it makes good sense to invest in a cloud-based telecom billing solution that stores data at different datacenters.