So many people ask what is the best type of MVNO to back either as an investor, a brand or working with MNOs, and MVNEs and MVNEs to define their strategy: At the end of the day backing an MVNO is like backing any business and a lot comes down to the team, product and market, but even then even a good team with the right product in the right market can not be successful for many reasons we cannot go into in a #shorts however there are three critical sucecss factors I have seen all successful MVNOS have over 2 decades of launching MVNOs (and every one we have launched still being in business!) Loyalty – if your MVNO is driving loyalty for your main business it will work, an example here is Tesco Mobile; people who have tesco mobile spend more of the grocery spend with that supermarket. These are business that have launched everything from banks, to video services, to insurance and more of the loyalty tie-ins but nothing is like Mobile for loyalty. Stickiness – Virgin media reported in a recent conference paper that 50% of their Mobile Capex was amortised alone in longer Broadband lifecycles… MVNO or bust – if your core business is or was dying, e.g. calling cards, some mobile first services, mobile app services, without an MVNO then… that is what you need to do. We will see everything from dating sites to social networks at least trying this before falling from favour / to competition.
See the long form video of this short below:
About the author