MVNO Success Path by Mohan Kumar, Founder & CEO, Plintron
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The MVNO environment MVNO Success path by Mohan Kumar, Founder & CEO, Plintron MVNO models range from pure marketing of hosted services to ‘Full MVNO’ who run their own core equipment, all but the radio network. A successful, profitable MVNO - with any of these models - is one who concentrates on innovative services which are frequently updated and on strong brand and customer relationship. MVNOs who distribute their own SIM cards, especially where Number Portability is available, are now in the driving seat, able to switch MNOs if they wish, and therefore able to negotiate better terms. Nevertheless, MVNOs must focus on their differentiating features and leave the network connectivity to MVNEs (enablers) and MVNAs (aggregators). MVNEs provide management of the infrastructure and connectivity to multiple MNOs, and free-up the MVNO to continue innovating. Mohan Kumar is the founder of PLINTRON, an international CLOUD based telecom infrastructure and business service provider integrated in fourteen countries MNOs. PLINTRON provides consultancy and support in regulatory, contract, design, capacity, roll-out and managing the services required for MVNO business. Mr Kumar spear-headed the launch of 25+ MVNO’s in seventeen countries spread across Americas, Europe and Asia. Mohan Kumar has over 22 years of experience in business and technology leadership position across Telecom, BFSI (Banking, Financial Services and Insurance) and Manufacturing industries. The MVNO (Mobile Virtual Network spectrum licence. At the other extreme, fewer manage to implement successful Operator) model represents a high- the infrastructure is completely outsourced transformation programs. potential market emerging in the wake of from the MNO, with only sales and the Mobile-established business, which marketing handled by the MVNO. There To maximize the bandwidth of possibilities, enables launching fast-moving new branded are also multiple network-sharing models, MVNO should have the capability to mobile service. As part of the MVNO where MNOs in the same geography can continuously adapt to new technologies and maturity cycle, the MVNOs’ business has leverage one another’s network reach and customise their service offering to cater to evolved, and in many cases MVNOs gained various technologies to lower operating the requirement of their focused market more control of their mobile services and cost and improve coverage. segments. The key to success is to be their relationships with subscribers. innovative and identify unexplored niches. Although the MVNO market has MVNOs should transform from ‘pure play’ The highest maturity model is widely consolidated in recent years, most low-cost to a ‘niche’ player with value-add. known as FULL or HEAVY MVNO Model, MVNOs are now struggling. The facts where the MVNO owns and operates are clear: only a handful of MVNOs that Today in the mobile service model, the all core network elements excluding the achieve excellence are able to sustain MVNO are in a better position than RADIO NETWORK which requires a it and be profitable over time. Even the MNO to be quick in delivering 16 n India 2012 The MVNO environment “The MVNO must focus on the core service control and business management of their brand, leaving the mobile coverage to the MNO. The key factors for a successful MVNO business are the attractive products and sleek sales and marketing, supported by a strong distribution capability.” differentiated services, since they have no fully agile with a competitive range of have existing MVNO markets, where legacy systems and no baggage of huge services and pricing. Lower operating cost the MVNA trend is now growing. New capital investment. This certainly gives a is always a life line, although the business MVNO markets like Eastern Europe, Latin competitive edge to the MVNOs compared model should be engineered based on the America, Middle East, Africa and unopened to the MNOs. Such service agility does focus areas to enable offering differentiated Asian countries are beginning to open up to pose a challenge on service stability but services with segment-based packages, MVNO business, and with that to MVNE this is manageable given the support of targeting age-based or ethnic segments, or and MVNA opportunities. l an equally adaptable technology provider, advertisement-based services. In today’s such as an MVNE (Mobile Virtual Network global market, MVNO can choose an Enabler). appropriate ‘home’ market to showcase the successful model and then replicate the The MVNE helps MVNOs to rapidly model in other territories. absorb change by enabling them to connect, collaborate and communicate With the rapid advancement in technology, better. The MVNE helps to address their the mobile handset has transformed from challenges in three key areas: business a basic device to a ‘pocket TV’, accessing Connect-World now on diversification, accelerating innovation data from the cloud. New MVNOs should and efficient operations. The MVNO make use of the core mobile service Facebook & Twitter must focus on the core service control capability from the MVNA who has a cloud and business management of their brand, and hosted telecom infrastructure that is Connect-World, the world’s leaving the mobile coverage to the MNO. already pre-integrated with multiple MNOs. foremost discussion forum for The key factors for a successful MVNO This saves time and cost for new MVNOs leaders in the ICT industry, is now business are the attractive products and and provides a hassle-free jump-start into available on Facebook and Twitter. sleek sales and marketing, supported their business. by a strong distribution capability. In a The world’s top ICT decision fast-changing technology world, MVNO The MVNO key asset is the ownership of makers express their opinions in should only base their value on these three the SIM card with the Mobile number, Connect-World. They use clear, core attributes. MVNOs who appreciate which is the visible component to the their core attributes and have a successful customer. Having control of the SIM cards, non-technical, English to discuss business model will become leaders and coupled with number portability, gives the how ICT helps shape regional even graduate into an MVNA (Mobile MVNOs full flexibility to switch MNOs and global development. The Virtual Network Aggregator) role, to (or MVNAs) if so wished. This gives an articles essentially examine the enable others to build new brands and enormous negotiation power to the MVNO. influence that ICT products and their own mobile services. services have on the way people The MVNO should also bring convergence live and do business. With To be a successful player and a market of services to its customers, and should separate editions for each of leader, some of the pertinent questions that have full flexibility on the chosen telecom the world’s regions, the reports MVNOs need to evaluate are: infrastructure to enhance their products frequently for customer retention. To highlight the most important ICT 1. How can we be agile and quickly achieve this, a good analytics tool is trends and issues influencing realign our organisation’s landscape to required that provides information on socio-economic growth. changing business requirements? the customer product usage. Customer 2. What are the known pitfalls of retention should be a high priority from Connect-World is now available diversification and transformation and what day one to help the MVNO to fight against to follow on Twitter (http://twitter. could we do best to avoid them? the churn. com/#!/ConnectWorldICT) and 3. How do we sustain our performance - Facebook http://www.facebook. what is our differentiation? As the Mobile market is becoming com/connectworld.ict 4. How do we create a culture of saturated in the developed countries, continuous adaptability that will help there is a huge opportunity in developing us sustain competitive advantage in a and underdeveloped countries. Mobile Also, it is still possible, for FREE, constantly changing world? convergence for the enterprises, including to directly access all past and 5. How do we align our offerings M2M, is another promising opportunity present Connect-World articles, strategically to bring more MVNOs on area for MVNOs. ICT Industry press releases, board without conflict of interest? eLetters, ICT News and more at US, Canada, Western and Central Europe, www.connect-world.com. In today’s world, the MVNO needs to be Russia, and some of the Asian countries India 2012 n 17.