As rivalry and demand continue to shift, as well as technological improvements, the landscape for MVNOs (mobile virtual network operators) presents both exciting new potential and daunting new challenges. Before we jump to the main topic, let’s start by understanding what exactly MVNO means.
Understanding MVNO
Wireless service providers who outsource their network infrastructure to an MVNO are known as “mobile virtual network operators.” Continued developments in the MVNO market provide several opportunities. Artificial intelligence (AI), machine learning (ML), the Internet of Things (IoT), and 5G are all new markets with a lot of potential for MVNOs.
According to a survey, the MVNO industry is predicted to grow from its current valuation of $61.9 billion to $91.63 billion by 2026. e-SIM, IoT, 5G, ML, AI, and edge computing are all examples of promising new technologies that might help MVNOs expand in the near future.
Current trends in the telecom industry point toward a data-centric market whereby an increasing share of computing-related tasks and app s will take place in the cloud. Since most companies now ask their workers to sometimes work from home, it makes sense for mobile virtual network operators (MVNOs) to make money off of the increase in internet traffic that comes with it.
More and more transactions, including withdrawals, payments, and bill payments, are happening digitally and through mobile devices. MVNOs have a huge chance to profit from the fact that over a billion people worldwide do not have bank s. When it comes to mobile data, customers now have more agency, thanks to self-service websites. Fast, adaptable services are needed by s for self-service platforms, and MVNOs may provide them at competitive prices.
With improved data connection management, MVNOs will be able to expand their service offerings and tap into formerly untapped income opportunities. In this context, MVNOs may play a role in reducing costs via AI-enabled customer . This will increase as 5G virtualizes mobile networks, allowing for the emergence of new use cases. The M2M and IoT sectors are expanding, and mobile virtual network operators (MVNOs) are hoping to cash in. Below are the top 5 developments for mobile virtual network operators and essential questions to address to effectively navigate the expanding world of MVNOs:
1. MVNOs use value propositions to target specific market segments.
To expand access to mobile services for underserved communities, operators often partner with MVNOs that operate as “sub-brands” of their main business, tailoring their offerings to certain demographics while maintaining the host company’s overall brand identity. MVNO services have moved from text and voice to data-centric. Others, on the other hand, have come up with unique value propositions that include bundles of the parent company’s other products and services, such as gaming or business cloud services.
In the customer area, where integration of fixed phone and multimedia services assists in increasing stickiness and minimizing churn, cable providers are growing into mobile via MVNOs as a quicker, cheaper market entry option than establishing a network. BYOD and markets for refurbished handsets have made it easier for MVNOs to give low-income subscribers more fully-equipped handsets and flagship phones from previous generations.
MVNOs focusing on Wi-Fi for IoT, M2M, and increased connectivity will emerge as we get farther down the path of industrial digitalization. These suppliers will contribute to growing out-of-the-box networking packed with products and other solutions in the all-connected world: autos, medical equipment, wearables, heavy machinery, etc.
2. MVNOs are promoting change and innovation.
Market saturation has increased competition and price burdens, prompting mobile virtual network operators (MVNOs) to develop their own personalized advertising for particular segments (youngsters, military, seniors, immigrants). This has increased the importance of differentiating value propositions and pricing structures for MVNOs.
Mobile virtual network operators’ efforts to compete on price and quality have included an emphasis on compelling Wi-Fi first value propositions. Many MVNOs are adopting digital transformation strategies to become more adaptable, customer-focused, and cost-effective.
3. The rise of cutting-edge technologies has given mobile virtual network operators access to new markets that look good.
MVNOs will benefit from the following five important technological enablers:
- Electronic subscriber identification modules (e-SIMs) will make out-of-the-box connections possible. This implies that it will be accessible to all s without further setup.
- SDN and NFV will make it possible, among other things, to lower wholesale data costs by slowing down video traffic using traffic shaping on a PGW on the host network.
- IoT and the combination of AI and ML with big data might allow for more personalization and the next-best solution for individual customers and data on the functioning of individual devices.
- Blockchain is particularly important in ecosystem alliances and supply chain management. Still, it also applies to mobile payments, microloans, and mobile banking.
- Using the MNO’s (or a partner’s) computing, which enables data generated by IoT devices to also be processed pretty close to where it was created as opposed to sending it over long hauls to clouds or data centers, MVNOs can provide assistance with enhanced packet delay to their customers without burdening the host’s wireless network.
4. With 5G, a new class of mobile virtual network operators (MVNOs) will become possible.
A new generation of MVNOs will target certain industries with solutions that package their specialized connection demands with cloud computing and big data services as 5G deployments enable network slicing. New MVNOs will allow startups and small businesses to use big data, AI, and cloud services. Due to software-defined networking (SDN), more and more corporate services are being made available via self-service portals. This trend could be expanded so that a business MVNO can help small businesses start and stop services quickly and get them up and running quickly.
5. MVNOs are helpful to society.
By making mobile services more accessible to those with lower incomes and to smaller businesses, startups, and entrepreneurs, MVNOs may help people and communities thrive. IoT-focused MVNOs could help stop global warming and environmental damage by making it easier to connect farms and make transportation better.
The Bottom Line
If MVNOs want to provide their customers with the latest and greatest in Wi-Fi and business services, they will need to work with companies like STL. Use the services of STL’s consultants, who have experience working with MVNOs, to help you figure out how to best meet their requirements.
