The telecommunications landscape continues to evolve, with MVNOs (Mobile Virtual Network Operators) now becoming pivotal in shaping the future. For Mobile Network Operators (MNOs), embracing these players isn’t just a choice – it’s a strategic necessity.
Let’s explore the opportunities and challenges in opening the MVNO market — and why MNOs should make MVNOs their new best friends.
Like it or not, MVNOs will enter the market, and MVNOs will win subscribers. The question is, will these subscribers be on your network?
You’re an MNO. So, why do MVNOs matter for your business?
- Revenue diversification
MVNO wholesale agreements open new revenue streams, enabling MNOs to monetise existing infrastructure more effectively. Additionally, services like Billing-as-a-Service (BaaS) offer further growth potential.
- Customer acquisition cost
With MVNOs often focusing on niche areas, MVNOs will help attract subscribers to your network. They assume the cost of go-to-market efforts, support, and risk.
- Enhanced network utilization
Onboarding MVNO customers increases the utilization of an MNO’s network, ensuring investments in infrastructure yield higher returns.
- Customer retention
Working with MVNOs reduces network churn. Subscribers transitioning from one on-net brand to another stay within the MNO’s ecosystem, safeguarding market share.
- Serving niche markets
MVNOs excel at targeting underserved or niche markets. By collaborating with them, MNOs can access these segments without directly investing in specialized marketing or services.
Challenges faced by MVNOs
Despite their potential, MVNOs face significant hurdles:
- Technical integrations: Establishing seamless connections with MNO infrastructure is resource intensive.
- Commercial barriers: Navigating pricing, marketing, and customer care requires deep expertise and investment.
- Cost management: Every dollar must be justified through subscriber growth or higher Average Revenue Per User (ARPU).
- Talent scarcity: Finding skilled professionals to manage operations is a recurring challenge.
- Wholesale agreements: Profitability hinges on favourable terms with hosting MNOs.
How will AI help manage new SMS fraud threats in 5G networks?
As SMS fraud becomes more sophisticated with the rise of 5G, AI can play a significant role by enhancing detection, prevention, and response capabilities. For example, AI and machine learning (ML) algorithms are capable of processing vast amounts of data in real time, identifying patterns that indicate fraudulent activity. These algorithms can analyze traffic anomalies, unusual behaviors, or deviations from normal messaging patterns to detect SMS fraud in real time.
AI-based systems can continuously learn from new data they collect and adapt to emerging fraud tactics as they evolve. With the rise of 5G, the volume and complexity of fraud attempts will increase, but AI can keep pace by updating its models based on new threat information, making it more resilient against novel attacks.
By incorporating natural language processing (NLP) into their anti-fraud solutions, CSPs can analyze the content of SMS messages to detect smishing by identifying suspicious keywords, phrases, or links. AI-driven NLP can differentiate between legitimate and fraudulent messages, even if the bad actors use sophisticated language or personalization.
How can CSPs protect their networks and customers from SMS fraud in the 5G era?
While 5G brings faster and more efficient communication, it also introduces new vulnerabilities for SMS fraud. The increased connectivity and speed mean that attacks can be larger in scale and more sophisticated, making the need for robust security measures more critical than ever.
As an MNO, you can help mitigate challenges for you MVNO partners, leading them to success — and, ultimately, helping you to capture new revenue streams and diversify risk.
The advantage of becoming an MVNE
MVNEs can offload operational burdens, enabling MVNOs to focus on achieving critical mass. By partnering with MVNEs or even transitioning into an MVNE role directly, MNOs can simplify processes, reduce time-to-market, and help MVNOs overcome challenges, creating a win-win situation for all stakeholders.
You have the skills, the market experience, and once you have the technology support systems in place to be shared with MVNOs, you can minimise the biggest challenges, including the financial strains of setting up an MVNO.
Case Study: the MNO launching a MVNE Platform
At Enghouse, we’ve seen and helped MNOs to enter the MVNE space. By enabling service providers and MVNOs to leverage their wholesale and retail platforms, MNOs have diversified revenue streams and enhanced competitive edge. This model demonstrates how MNOs can successfully engage with service providers and MVNOs to drive growth.
Three Steps to Success
To capitalise on the MVNO market, MNOs must:
- Develop robust onboarding processes: Ensure systems and structures are in place to efficiently onboard MVNOs.
- Stay competitive: Offer attractive wholesale agreements and services to avoid network churn, while also considering the combined revenue from BaaS services and network traffic.
- Expand service offerings: Provide solutions that offload operational complexities from MVNOs, allowing them to focus on customer acquisition and retention.
Conclusion
Opening the MVNO market is a gateway to growth for MNOs willing to embrace change. By forming strategic partnerships with MVNOs, MNOs can diversify revenue, optimise network usage, and gain a competitive edge in an increasingly dynamic telecommunications market. The key lies in collaboration, innovation — and a shared commitment to success.
The future belongs to those who adapt and embrace this model.
