The Relationship Between MVNOs and MVNEs | Full Guide
To create and run a successful MVNO business, you have to take care of several responsibilities. Offer personalized services to users. Execute effective marketing strategies. Keep up with the contract with your MNO. Data analysis. And so on.
For most small to medium-sized MVNOs, these duties are too much to handle. They have two choices. Either work with many third-party companies and essentially endanger customer data, or hire an MVNE to take care of all administrative duties and focus on selling personalized offers to customers.
We will break down what MVNOs and MVNEs are and the relationship between the two. Let’s get started.
What Is an MVNO?
An MVNO is a network operator who buys bulk telecom services from an MNO and resells them to users. An MVNO is usually focused on providing very personalized and streamlined services to customers.
Verizon and T-mobile are examples of MNOs that sell network infrastructure to MVNOs like Virgin Mobile and Walmart Mobile.
Some MVNOs are extensive enough to offer the full range of telecom services from voice to data connectivity. These companies, called full MVNOs, develop their billing systems, produce their own SIM cards, and manage their charging systems.
Light MVNOs depend on the MNO to take care of connectivity. All they do is provide niche services and marketing to their audience.
What Is an MVNE?
MVNE stands for Mobile Virtual Network Enablers. These telecom companies work with MVNOs to ensure the smoothness of service. They are there to make life easier for the startup MVNO.
Remember the reason why MVNOs are in the market in the first place. They are there to provide niche and personalized services that the large MNO cannot offer its users.
An MVNO, especially a full one, has several responsibilities, including providing connectivity services, tariffs, personalized services, and customer support.
Many MVNOs cannot handle it all, so they reach out to MVNEs to help. MVNEs take care of the customer support and the administrative work for the MVNOs. This frees the MVNOs to focus on developing streamlined offers for their users.
It’s common to find one MVNE working with several MVNOs.
Benefits of Working With an MVNE
- A Reliable Online Charging System
MVNOs now use online charging systems to bill customers accurately. Online charging systems bill customers in real-time, which allows for greater transparency and an increase in customer trust.
The thing is, most MVNOs cannot invest in creating their own OCS solution. On the other hand, MVNEs have OCSs already in place.
It’s cheaper and easier for the MVNO to hire an MVNE to take care of charging customers.
- Specialized Customer Service
As an MVNO grows and acquires more customers, the need for a systematized customer service center becomes more urgent. A startup MVNO either creates a new department and hires many support reps or outsources to a third-party company.
An MVNO should outsource customer service to an MVNE because they have staff specifically trained to cater to telecom users. Hiring an MVNE to care for customer service saves an MVNO money and time.
- Reduced Spending Costs
The MVNE takes on all the administrative duties of an MVNO, which saves the MVNO from spending money to recruit more staff and take care of billing, customer support, and data analysis.
Telgoo5 offers both MVNO and MVNE services to small and medium-sized telecom companies. Contact Telgoo5 today to learn more.
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