August 21, 2016

How To Start an MVNO?

The telecom industry evolves like a shot. About 10 years ago it seemed as though everything would be stable and predictable, but today we see new business ideas appearing almost every day. So, in this post, we’re going to present one of the most interesting models and will provide a general overview how to start an MVNO.
What do you really need to start MVNO?

A Strong Marketing and Business Plan

Of course, you should analyse the market, customer base, distribution channels, etc. Then, you can create your main development strategy and estimate your financial potential. Your plan will help you choose the exact MVNOs category, for instance:

  • Discount MVNO-s based on a  budget-conscious mobile user. These offer simple services such as voice and text only, but they generate lower earning per subscriber. A niche MVNO is oriented towards age-related demographics, ethnic groups, and specific user interest.
  • Retail MVNOs for major retail chains such as supermarkets and department stores where subscribers can buy SIM cards.
  • An advertising-based MVNO provides discounted services and sometimes even free minutes and content in exchange for broadcasting advertising to subscribers’ devices

You should have a clear idea of how many subscribers you have to acquire and support to be profitable. There must be a forward-looking operational plan in place to prepare for a large-scale environment.

A Service Provider Agreement

The main component to start an MVNO business is permission to provide such a mobile service. In most countries, you can get it by notifying the Telecommunication Authority, and obtain resources, like mobile numbers (MSISDN) and IMSI blocks.

Technical Infrastructure

The whole system should include a core network system service delivery platform, CRM, billing systems, customer care systems and network management.

Product Support

Product support includes day-to-day operational tasks such as hardware maintenance, performance monitoring and other activities to maintain a high quality of service and optimize the usage of the infrastructure.

Cooperation from MVNO Companies

If you have a solid business plan understand the type of MVNO you want to launch and have the necessary funding, the next step is to contact the respective companies.

We hope this will help you in some way. But anyway we want to give you one tip: Be realistic! 🙂

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