The sky-rocketing demand for mobile services has inspired many companies to take a leap into the telecom space. More and more companies are realising that the mobile virtual network operator (MVNO) business model can be leveraged to initiate a novel market idea and offer a true digital experience to capture new market share.
An emerging class of MVNOs are business focused and owned by retail, media and financial services companies. These MVNOs offer specialised services targeted for particular vertical segments. Their product offerings include mobile payments, video services, surveillance/security services and utility services, etc. A common example are utility companies with large telemetry needs that implemented their own private MVNO deployments, without relying on a mobile network operator (MNO) for telecom services.
Driven by the rapid growth in the number of IoT connections, the MVNO business model is also increasingly explored by companies requiring network access for their IoT and M2M businesses. These include examples of services such as insurance telematics, in-car hotspots, entertainment, location-based services, as well as smart metering. In the IoT segment, MVNOs use mobile networks as one of the many models to develop the business case for connecting things and offering an IoT optimised platform.
Market Perspective: Where is the Global MVNO Market Headed?
Despite some cases of consolidation over the last few years, the MVNO services market is here to stay and continues to grow:
- The global MVNO subscriptions are expected to reach approximately 255 million subscribers in 2021
- The global market size is estimated to boom and hit a value of $103 billion by 2023
- New entrants are joining the MVNO market and these include alternative Internet of Things (IoT) providers, specialised service providers and retail brands.
An increasing number of MVNOs, at a global level, think about out of the box of connectivity and build offerings for a market segment or purpose-built for a specific customer segment. Their role grows beyond being a simple brand reseller or a traditional full-service provider, which leads to greater challenges for their operations and profitability.
MVNOs will need to continue to innovate with customised and specialised service offerings to compete against the larger telco-scale and web-scale competitors. This all translates into the need for greater flexibility in outsourcing business areas, depending upon the type of partnerships and the needs of the business market segments.
One of the key challenges that MVNO businesses face is the growing complexity related to the implementation phase of projects. With various components and solutions in a large ecosystem there are greater needs for coordination. Support is needed for delivering compelling and hassle free customer journeys, automating involved processes and encouraging the use of self-serve options at various touchpoints.
Learn More
Enghouse Networks has helped over 100+ MVNO’s manage the complexity of launching their MVNO business. Download this exclusive Global MVNO report, brought to you by Enghouse Networks in conjunction with Omdia that looks at the demand drivers, opportunities, challenges and differentiators that form global MVNO services, with a focus on the business-to-business market.
