What are the types of Mobile Virtual Network Operators (MVNO) available in the Market?
Mobile Virtual Network Operators (MVNOs) have revolutionized the telecom industry by offering innovative and affordable mobile services without owning the underlying network infrastructure. Instead, they lease network capacity from traditional Mobile Network Operators (MNOs) and resell it under their own brand. While all MVNOs share this basic business model, there are several types of MVNOs that differ in their level of control, ownership, and differentiation of the mobile services they offer. In this blog post, we'll explore the different types of MVNOs available in the market, their characteristics, advantages, and examples. We'll also highlight how Telgoo5's cutting-edge BSS solutions can help MVNOs of all types to launch, manage, and grow their mobile businesses with ease and efficiency.
1. Branded Reseller MVNO
A Branded Reseller MVNO is the simplest and most common type of MVNO, which focuses primarily on marketing and selling mobile services under its own brand, while relying on the host MNO for most of the technical and operational aspects of the service. Branded Reseller MVNOs typically have limited control over the network, SIM cards, and service offerings, and differentiate themselves mainly through branding, pricing, and customer experience.
The main advantage of the Branded Reseller model is that it allows companies with strong brands and distribution channels, such as retailers, banks, or media companies, to quickly enter the mobile market and offer mobile services as a value-added or loyalty-building service to their customers. They can leverage their existing customer relationships, brand equity, and marketing resources to attract and retain mobile subscribers, without the need for significant technical expertise or investment.
Examples of Branded Reseller MVNOs include Tesco Mobile in the UK, which is owned by the supermarket chain Tesco and runs on the O2 network, and Boost Mobile in the US, which is owned by the retailer Walmart and runs on the Sprint and T-Mobile networks.
To succeed as a Branded Reseller MVNO, companies need to have a strong and trusted brand, a loyal customer base, and effective marketing and distribution channels. They also need to have a reliable and cost-effective partnership with the host MNO, and a flexible and scalable BSS platform, like Telgoo5's, that can handle the complex billing, rating, and customer management processes involved in mobile services.
2. Service Provider MVNO
A Service Provider MVNO is a more advanced type of MVNO that has greater control and ownership over the mobile services it offers, beyond just branding and marketing. Service Provider MVNOs typically have their own core network infrastructure, such as Mobile Switching Centers (MSCs), Home Location Registers (HLRs), and billing systems, which allows them to offer more differentiated and value-added services to their customers.
Service Provider MVNOs can own and control their own SIM cards, mobile numbers, and service plans, and can offer a wider range of voice, data, and messaging services, as well as value-added services such as voicemail, call forwarding, and international roaming. They can also have greater flexibility in pricing, bundling, and packaging their services, and can offer more personalized and targeted offerings to specific customer segments.
The main advantage of the Service Provider model is that it allows MVNOs to have greater control over the end-to-end customer experience, and to differentiate themselves through innovative and high-quality services. They can also have greater bargaining power with the host MNO, and can negotiate better wholesale rates and service level agreements.
Examples of Service Provider MVNOs include Virgin Mobile in the UK, which has its own core network infrastructure and runs on the EE network, and Republic Wireless in the US, which has its own proprietary WiFi-first technology and runs on the Sprint and T-Mobile networks.
To succeed as a Service Provider MVNO, companies need to have significant technical and operational expertise, as well as a robust and flexible BSS platform that can handle the complex billing, rating, and network management processes involved in mobile services. They also need to have a clear and compelling value proposition for their target customers, and effective marketing and sales strategies to acquire and retain them.
3. Light MVNO
A Light MVNO is a hybrid type of MVNO that falls between the Branded Reseller and Service Provider models, in terms of its level of control and ownership over the mobile services it offers. Light MVNOs typically have some elements of their own network infrastructure, such as SIM cards, mobile numbers, and billing systems, but rely on the host MNO for other elements such as radio access network, core network, and service platforms.
Light MVNOs can offer some differentiated and value-added services, such as custom billing and customer care, but are still dependent on the host MNO for the majority of the technical and operational aspects of the service. They can also have some flexibility in pricing and packaging their services, but are limited by the wholesale rates and terms set by the host MNO.
The main advantage of the Light MVNO model is that it allows companies to have some control and differentiation over their mobile services, without the need for significant technical and financial investments. They can also benefit from the scale and expertise of the host MNO, while still maintaining their own brand identity and customer relationships.
Examples of Light MVNOs include Tracfone in the US, which has its own SIM cards and billing system, but runs on multiple host MNO networks, and Lebara in Europe, which has its own mobile numbers and customer service, but relies on various host MNOs for network access and service platforms.
To succeed as a Light MVNO, companies need to have a clear understanding of their target customers and value proposition, and a flexible and cost-effective BSS platform that can integrate with the host MNO's systems and processes. They also need to have effective marketing and distribution strategies to acquire and retain customers, and a strong brand and customer experience to differentiate themselves in the market.
4. Full MVNO
A Full MVNO is the most advanced and independent type of MVNO, which has complete control and ownership over all aspects of the mobile service, except for the radio access network. Full MVNOs have their own core network infrastructure, service platforms, SIM cards, mobile numbers, and BSS systems, and can offer a full range of voice, data, and value-added services to their customers.
Full MVNOs have the greatest level of flexibility and differentiation in their service offerings, pricing, and packaging, and can offer the most innovative and high-quality services to their customers. They can also have the greatest bargaining power with the host MNO, and can negotiate the most favorable wholesale rates and service level agreements.
The main advantage of the Full MVNO model is that it allows companies to have complete end-to-end control over the customer experience, and to differentiate themselves through cutting-edge services and technologies. They can also have the greatest potential for growth and profitability, as they can capture a larger share of the value chain and revenue streams.
Examples of Full MVNOs include Lycamobile in the UK, which has its own core network infrastructure and service platforms, and runs on the O2 network, and Google Fi in the US, which has its own intelligent switching technology and runs on multiple host MNO networks.
To succeed as a Full MVNO, companies need to have significant technical, operational, and financial resources, as well as a clear and compelling vision for their mobile services. They also need to have a robust and scalable BSS platform, like Telgoo5's, that can handle the complex billing, rating, network management, and customer care processes involved in mobile services.
5. Roaming MVNO
A Roaming MVNO is a specialized type of MVNO that focuses on providing mobile services to customers who frequently travel or live abroad, by leveraging the roaming agreements and partnerships of multiple host MNOs in different countries. Roaming MVNOs typically have their own SIM cards, mobile numbers, and billing systems, but rely on the host MNOs for network access and service platforms in each country.
Roaming MVNOs offer a convenient and cost-effective way for customers to stay connected while traveling, without the need for multiple SIM cards or high roaming charges. They can offer a variety of international roaming plans, with different pricing, data allowances, and coverage options, depending on the customer's needs and destinations.
The main advantage of the Roaming MVNO model is that it allows companies to target a specific and high-value customer segment, such as business travelers, tourists, or expatriates, and to offer them a seamless and affordable mobile experience across multiple countries. They can also benefit from the scale and coverage of multiple host MNOs, without the need for their own network infrastructure in each country.
Examples of Roaming MVNOs include Truphone, which offers global mobile services for business travelers, and WorldSIM, which offers prepaid international SIM cards for tourists and students.
To succeed as a Roaming MVNO, companies need to have strong partnerships and agreements with multiple host MNOs in different countries, as well as a flexible and scalable BSS platform that can handle the complex billing, rating, and roaming processes involved in international mobile services. They also need to have effective marketing and distribution strategies to reach and acquire their target customers, and a strong brand and customer experience to differentiate themselves in the market.
6. Discount MVNO
A Discount MVNO is a type of MVNO that focuses on offering low-cost and no-frills mobile services to price-sensitive customers, by leveraging the excess network capacity and wholesale rates of the host MNO. Discount MVNOs typically have a simple and lean business model, with minimal marketing, distribution, and customer service overheads, and pass on the cost savings to their customers in the form of lower prices and basic service plans.
Discount MVNOs often target specific customer segments, such as students, seniors, or low-income households, who may not need or afford the latest devices, features, or data allowances, and are willing to trade off some service quality or customer experience for lower prices. They may also offer prepaid or pay-as-you-go plans, rather than postpaid or contract plans, to avoid credit checks or long-term commitments.
The main advantage of the Discount MVNO model is that it allows companies to quickly enter the mobile market and capture a share of the value-conscious customer segment, without the need for significant investments or differentiation. They can also benefit from the network coverage and reliability of the host MNO, while still maintaining their own brand and pricing strategy.
Examples of Discount MVNOs include Straight Talk in the US, which offers low-cost prepaid plans on multiple host MNO networks, and Ting Mobile, which offers pay-as-you-go plans with no contracts or hidden fees.
To succeed as a Discount MVNO, companies need to have a lean and efficient operations, with minimal overhead costs and a focus on online and self-service channels. They also need to have a reliable and cost-effective partnership with the host MNO, and a simple and user-friendly BSS platform, like Telgoo5's, that can handle the basic billing, rating, and customer management processes involved in low-cost mobile services.
7. Ethnic MVNO
An Ethnic MVNO is a type of MVNO that focuses on providing mobile services to specific ethnic or cultural groups, by offering tailored plans, content, and customer support in their native language and cultural context. Ethnic MVNOs typically target immigrant or diaspora communities, who may have specific communication and entertainment needs, such as international calling, mobile money transfers, or culturally relevant content.
Ethnic MVNOs often partner with host MNOs in both the home and host countries, to offer affordable and convenient international calling and roaming services to their customers. They may also offer value-added services, such as mobile top-ups, bill payments, or remittances, to meet the financial and transactional needs of their customers.
The main advantage of the Ethnic MVNO model is that it allows companies to target a specific and often undeserved customer segment, and to offer them a more personalized and culturally relevant mobile experience. They can also benefit from the trust and loyalty of their customers, who may prefer to deal with a provider that understands their language, culture, and needs.
Examples of Ethnic MVNOs include Lebara, which offers mobile services to various immigrant communities in Europe, and Lyca Mobile, which targets South Asian and other ethnic groups in the US and other countries.
To succeed as an Ethnic MVNO, companies need to have a deep understanding and connection with their target ethnic or cultural group, and a localized and culturally sensitive marketing, distribution, and customer support strategy. They also need to have a flexible and customizable BSS platform, like Telgoo5's, that can handle the specific billing, rating, and value-added service requirements of their target customers.
8. M2M/IoT MVNO
An M2M/IoT MVNO is a type of MVNO that focuses on providing mobile connectivity and services for machine-to-machine (M2M) and Internet of Things (IoT) applications, such as smart meters, connected cars, or industrial sensors. M2M/IoT MVNOs typically partner with host MNOs that have specialized network infrastructure and platforms for M2M/IoT services, such as Narrowband IoT (NB-IoT) or LTE-M.
M2M/IoT MVNOs offer a range of connectivity options and service plans, depending on the specific requirements and constraints of each M2M/IoT application, such as bandwidth, latency, power consumption, or security. They may also offer value-added services, such as device management, data analytics, or application enablement, to help their customers deploy and manage their M2M/IoT solutions.
The main advantage of the M2M/IoT MVNO model is that it allows companies to specialize in the rapidly growing and complex M2M/IoT market, and to offer tailored and innovative solutions to their customers. They can also benefit from the scale and expertise of the host MNO, while still maintaining their own brand and service differentiation.
Examples of M2M/IoT MVNOs include Aeris, which offers global M2M/IoT connectivity and services for various industries, and Kore Wireless, which provides M2M/IoT solutions for enterprise and government customers.
To succeed as an M2M/IoT MVNO, companies need to have a deep understanding of the M2M/IoT ecosystem and value chain, and a strong partnership with the host MNO and other M2M/IoT players, such as device manufacturers, software providers, or system integrators. They also need to have a robust and scalable BSS platform, like Telgoo5's, that can handle the complex billing, rating, and service management processes involved in M2M/IoT services.
9. Cable MVNO
A Cable MVNO is a type of MVNO that is operated by a cable TV or broadband provider, as a way to offer a quadruple play bundle of services, including TV, broadband, fixed telephony, and mobile. Cable MVNOs typically partner with a host MNO to offer mobile services to their existing cable customers, as a way to increase customer loyalty, reduce churn, and generate additional revenue streams.
Cable MVNOs often offer discounted or integrated mobile plans as part of their cable bundles, and may also provide exclusive content, features, or benefits to their mobile customers, such as free Wi-Fi hotspots, TV streaming, or home security services. They may also leverage their existing cable infrastructure and customer relationships to offer converged services, such as mobile backhaul, small cells, or Wi-Fi offload.
The main advantage of the Cable MVNO model is that it allows cable providers to enter the mobile market and offer a comprehensive and sticky bundle of services to their customers, without the need for significant investments in mobile networks or spectrum. They can also benefit from the cross-selling and upselling opportunities of their existing cable customer base, and the operational and marketing synergies of their quad-play offerings.
Examples of Cable MVNOs include Xfinity Mobile in the US, which is operated by Comcast and runs on the Verizon network, and Virgin Media in the UK, which offers mobile services as part of its cable bundles.
To succeed as a Cable MVNO, companies need to have a strong and loyal cable customer base, and a compelling and integrated value proposition for their quad-play bundles. They also need to have a flexible and converged BSS platform, like Telgoo5's, that can handle the complex billing, rating, and service management processes involved in multi-play services.
10. Retail MVNO
A Retail MVNO is a type of MVNO that is operated by a retail company, as a way to offer mobile services as a complementary or standalone offering to their customers. Retail MVNOs typically partner with a host MNO to offer mobile services under their own brand, and may also offer exclusive discounts, rewards, or promotions to their retail customers.
Retail MVNOs often leverage their existing retail footprint, customer relationships, and loyalty programs to market and distribute their mobile services, and may also offer mobile-related products and accessories in their stores. They may also use their mobile offerings to gather customer data and insights, and to enhance their overall retail experience and engagement.
The main advantage of the Retail MVNO model is that it allows retailers to diversify their revenue streams and increase customer loyalty, by offering a relevant and convenient mobile service to their customers. They can also benefit from the brand awareness and trust of their retail brand, and the cross-selling and upselling opportunities of their mobile and retail offerings.
Examples of Retail MVNOs include Tesco Mobile in the UK, which is operated by the grocery retailer Tesco, and Asda Mobile, which is operated by the Walmart-owned supermarket chain Asda.
To succeed as a Retail MVNO, companies need to have a strong and recognizable retail brand, and a clear and compelling value proposition for their mobile offerings. They also need to have a seamless and integrated customer experience across their retail and mobile channels, and a flexible and scalable BSS platform, like Telgoo5's, that can handle the complex billing, rating, and customer management processes involved in retail mobile services.
In addition to the types of MVNOs mentioned above, there are also some emerging and niche MVNO models that are worth noting, such as:
Digital MVNO: A Digital MVNO is a type of MVNO that operates purely online, without any physical stores or customer service centers. Digital MVNOs often target digital-savvy and self-service-oriented customers, and offer a simple and streamlined mobile experience through their web and mobile apps. Examples of Digital MVNOs include Mint Mobile and Unreal Mobile in the US.
Enterprise MVNO: An Enterprise MVNO is a type of MVNO that focuses on providing mobile services to enterprise customers, such as businesses, government agencies, or educational institutions. Enterprise MVNOs often offer specialized plans, features, and support for enterprise needs, such as mobile device management, security, or expense management. Examples of Enterprise MVNOs include Cradlepoint and NetMotion in the US.
International MVNO: An International MVNO is a type of MVNO that focuses on providing mobile services to customers who frequently travel or live abroad, by leveraging the roaming agreements and partnerships of multiple host MNOs in different countries. International MVNOs typically offer global SIM cards or roaming plans with low rates and convenience features, such as real-time usage alerts or multi-IMSI switching. Examples of International MVNOs include OneSim and GigSky.
Social MVNO: A Social MVNO is a type of MVNO that integrates mobile services with social media and messaging platforms, such as Facebook, WhatsApp, or Telegram. Social MVNOs often offer free or discounted voice and data services in exchange for viewing ads, participating in surveys, or inviting friends to join the network. Examples of Social MVNOs include FreedomPop and Luup Mobile.
Regardless of the type of MVNO, all MVNOs need to have a robust and flexible BSS platform to handle the complex billing, rating, customer management, and service orchestration processes involved in mobile services. This is where Telgoo5's BSS solutions come in, providing a comprehensive and modular platform that can support the needs of MVNOs of all types and sizes.
Telgoo5's BSS solutions include features such as:
Multi-tenant and multi-tier architecture, allowing MVNOs to manage multiple brands, markets, and partners on a single platform
Convergent billing and rating engine, supporting complex pricing, bundling, and promotion scenarios across multiple services and channels
Customer management and self-service tools, enabling MVNOs to offer a seamless and personalized customer experience across all touch points
Service orchestration and automation, allowing MVNOs to quickly launch and manage new services and offers, and to integrate with external systems and platforms
Analytics and reporting, providing MVNOs with real-time insights and intelligence on their business performance, customer behavior, and market trends
With Telgoo5's BSS solutions, MVNOs can focus on their core business of marketing, selling, and delivering mobile services, while leaving the technical and operational complexities to a trusted and experienced partner. By leveraging Telgoo5's expertise and innovation, MVNOs can stay ahead of the curve in the fast-moving and competitive mobile market, and deliver a differentiated and valuable proposition to their customers.
In conclusion
the MVNO market is a dynamic and diverse ecosystem, with multiple types of players and models, each with their own unique strengths, challenges, and opportunities. As the mobile market continues to evolve and mature, we can expect to see more innovation and disruption from MVNOs, as they seek to carve out their own niches and value propositions. And with the help of enabling technologies and platforms, like Telgoo5's BSS solutions, MVNOs will be well-equipped to navigate the complexities and seize the opportunities of the mobile market, and deliver a better mobile experience to their customers.