More often than not, MVNOs have not been particularly successful. We have seen many MVNOs on the market, but most have failed commercially and have sold their customer base to the host-MNO.<\/p>\n
So what does it take to be a winner in the MVNO space?\u00a0 Well, let us start by taking some perspective on where MVNOs come from.<\/p>\n
What are MVNOs all about?<\/strong><\/p>\n MVNO are mobile service providers that do not own a GSM or UMTS spectrum licence but partner with an existing mobile network operator, also called host-MNO, and buy capacity on their radio access network.\u00a0 Since their initial appearance in the late 1990s in the Nordic countries and the UK, MVNOs have became widespread in Europe, America and some countries in Asia.\u00a0 They are now emerging in developing countries in the Middle East and Latin America.<\/p>\n MVNOs exist in various forms depending on the depth of their role in the value chain:<\/p>\n From an MNO perspective, opening its mobile network to MVNOs makes sense in the following circumstances:<\/p>\n Challenges<\/strong><\/p>\n Although there are hundreds of MVNOs worldwide, their success have been mixed.\u00a0 Most MVNOs have targeted niche segments of the market and remained niche businesses with less than 1% market share.\u00a0 The few very successful MVNOs always had a key asset, often a strong sales channel or well-known brand, that they could leverage into the mobile telephony business.\u00a0 This was the case of a number of mass-market retailers who launched low-frill and low-cost offering in supermarkets.<\/p>\n The main challenges for MVNOs have been their lack of differentiation and their often-inflexible contract with host-MNOs, limiting their ambitions technically and commercially:<\/p>\n The MVNO opportunity turns the mobile business on its head: tomorrow success will not come from excellent network coverage and best network quality \u2013 both taken for granted \u2013 but from innovation, branding, marketing, sales, handset and customer relationship management.\u00a0 Next generation MVNOs will need to have better market entry strategies with clear value-added and Unique Selling Proposition, as well as better contractual conditions with host-MNOs.<\/p>\n We expect to see fewer but more successful MVNOs in the future as the existing MVNO market consolidates and the MVNOs currently emerging in developing countries will be better equipped for success.<\/p>\n So what does it take to be a successful MVNO?<\/strong><\/p>\n Here are our golden rules for becoming a successful MVNO:<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" More often than not, MVNOs have not been particularly successful. We have seen many MVNOs on the market, but most have failed commercially and have sold their customer base to the host-MNO. So what does it take to be a… <\/p>\n\n
\n
\n
\n
\n
\n
\n
\n
\n
\n