Latest Posts

Mobile device ban for pedestrians up for final vote at city council

Is Mobile App Translation Optimized for Your Target Market Locations? It is a fallacy to anticipate that having an internet site flawlessly designed and adequately...

DHS Says New Security Is Needed for Mobile Devices and Networks

Sales by Implementing Mobile Devices Payment Here are 5 approaches which could help improve your sales by way of presenting clients with cellular payment Incorporate mobile Devices Networks and...

Peak Performance in Sports

In the sports arena, peak performance in sports has always been a much sought after state by players and coaches of all levels. Whether...

Nokia N95 – Mobile Phone Technology with Serious Style

Nokia  is the market leader in the mobile phone industry and although they have been challenged for the top spot on several occasions have...

How Mobile Virtual Network Aggregators (MVNA) Have Changed the Financing of a MVNO




Not so long ago entering the mobile market as a Give Us Life  MVNO was an expensive business, few successful MVNOs have survived without spending in excess of EUR3 million. Most have spent considerably more. However the advent of mobile virtual network aggregators has the potential to radically change the entry costs for new MVNOs.

The business concept is that the MVNA purchases mobile airtime in bulk form the partner mobile operator, adds its service platform and wholesales this airtime to multiple MVNOs, who each in turn sells the mobile service to end users. Good MVNAs will also provide a range of value added services to their MVNOs to lower the overall operational cost of the individual MVNOs. The major advantage to each MVNO is that they do not need to invest in, or operate, an expensive mobile billing and operations platform. Instead they just need to focus on sales and marketing activities.

We estimate that using a good MVNA will reduce the fixed market entry costs of a MVNO by a factor of five. However, customer acquisition costs (the bulk of a MVNOs variable spend) remain. Furthermore, selecting an appropriate partner is far from straightforward. It is all too easy for a MVNA to adopt an approach of signing up everyone for a set-up fee and allowing the survival of the fittest.

 

Related Articles : 

We believe that good MVNAs will focus on particular market segments, such as smaller ethnic MVNOs. Having common MVNOs with the same business issues, will enable the MVNA to provide a range of real value add services to lower the operating cost base of all of its customers.

MVNOs who genuinely have the potential to gain more than 100,000 customers, are more likely to be better off commercially with a direct relationship with a mobile network operator. In some instances the very same mobile virtual network aggregator may reconfigure itself to offer its services as a mobile virtual network enabler (MVNE). Financially, this arrangement can be advantageous for the MVNO.

These models are still in the very early stages of their evolution. Although the introduction of MVNAs appear to have reduced the entry cost of becoming a MVNO, in the author’s opinion they do not reduce the overall risk. Principally, because they do not improve the fundamental go-to market propositions of MVNOs.

(c) Andrew White 2014. Reproduction permitted provide no changes and links remain intact. All rights reserved internationally.




Latest Posts

Mobile device ban for pedestrians up for final vote at city council

Is Mobile App Translation Optimized for Your Target Market Locations? It is a fallacy to anticipate that having an internet site flawlessly designed and adequately...

DHS Says New Security Is Needed for Mobile Devices and Networks

Sales by Implementing Mobile Devices Payment Here are 5 approaches which could help improve your sales by way of presenting clients with cellular payment Incorporate mobile Devices Networks and...

Peak Performance in Sports

In the sports arena, peak performance in sports has always been a much sought after state by players and coaches of all levels. Whether...

Nokia N95 – Mobile Phone Technology with Serious Style

Nokia  is the market leader in the mobile phone industry and although they have been challenged for the top spot on several occasions have...

Don't Miss

MNO Portal Services For Mobile Operators

In the current scenario of declining voice revenue and greater competition, mobile operators see mobile content and applications as a way to both increase...

Windows Phone – Future of Mobile Operating Systems

Rapid advancements in electronics and telecommunications technology brought about a revolution in the way people communicate. The computer, which used to be bulky and...

Android Mobile Operating System Market Dominance

Android is Mobile Operating System (M-OS) that was initially developed by Android Inc., a company that was purchased in 2005 by Google. This mobile...

Enterprises – What Mobile Operators Are Not Telling You

Businesses are experiencing the proof in the pudding - mobile(text) messaging is a very powerful marketing tool and some enterprises are catching on to...

The History Of The Android Mobile Operating System

Android devices enjoy a majority share in the total sales volume for all smartphones and tablets. This could be attributed to several reasons, the...

Stay in touch

To be updated with all the latest news, offers and special announcements.