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:
There are two very simple reasons to keep it simple in Mobile, MVNO, IoT and even MVNE, MVNA, MVNx: 1) Simple sells; 2) your competitors think it won’t! (never underestimate how much your competitors will try and thwart what they see as a “competitive” service / tariff)… (or how they won’t see a simple tariff overtaking the market until its too late).
will #5G change the #IoT #AI #VR #AR #world? Sort of with help of #Private5G otherwise #ymmv #shorts
Private 5G & Private LTE is typically faster more reliable with better coverage and lower latency even than fibre here in my case, let alone wi-fi so what are you waiting for: from simple opensource to full commercial rollout the benefits are plain to see, even over stateofart wifi6 dualwan fibre in my case
Well a controllable variable reason that’s at the top of the list anyway
The days of getting a none tier 1 MNO universal roaming at usable rates are gone, and even for the big tier 1 groups, with massive romaing bases, while zone 1 and zone 2 roaming rates are usable (typically 30-50 countries) the reality is that the other nearly 200 countires in zones 3, 4 and 5 and RoW are just not usable. Ant that is a tier 1 MNO. The new strategies in the eSIM and 100s of % growth in IoT world means a full strategy involves multiple IMSIs sometimes multiple Sims, eSIMs (don’t worry if you are not yet eSIM capable, there are work arounds used by even tier 1 MNOs as well as MVNOs all over the world) and even leveraging MVNO agreements as well multiple IMSI agreements, and finally smarter SIM tools and using this traffic to accelerate your existing IR 21 and create a bespoke roaming footprint that suits your customer base not just whatever you could get on an IR 21 and a hub. This is not just a reality of volume, but also the nature of today’s global world, where roam like at home in a few neighbouring and high volume countries is just not good enough.
An IoT company or MVNO will never have full time staff for all the functions an MNO does, as they have up to tens of thousands of employees and still outsource a lot of key roles!
Mobile technology is generally hard… that is why most MNOs employ tens of thousands, thousands or even hundreds (smaller ones) of people and still have a lot of work outsourced. IoT and MVNO and MVNEs typically have small teams focussed on mostly selling and keeping their core service or core businesses new and existing customers happy. Employing a mobile team can be expensive, time consuming, and even then not get results as, let’s face it, when was the last time you needed to set up a SIM profile, IR21, learn and spot the latest fraud trends or process a batch of CDRs… these and many more are tasks that MNOs will have someone for, but it’s just not cost effective for an MVNO or IoT business to have around or even worry who they report to, or indeed that their skillset is becoming out of date as they are not working with lot’s of different businesses… In this series we will be exploring more of these areas and 1 min updates on key parts of the mobile ecosystem.. so grab a tea or coffee 😉