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

1.    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.

2.   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.

3.   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.

7 Essential Features of Great MVNO Providers

MVNOs, or Mobile Virtual Network Operators, are a fantastic consumer option. Rather than owning their own wireless network infrastructure, MVNOs maintain relationships with infrastructure owners and then resell access to the end user. As middle-men, MVNOs handle the difficult negotiating and are able to provide advantageous packages to consumers based on the bulk pricing they receive. 

If you are considering working with an MVNO, make sure that you look for these 7 essential features. These are the things that make an MVNO provider great. 

1. Agreements with multiple networks for high speed access wherever their clients are. Some MVNOs have agreements with just one network, but great ones have agreements with multiple networks. This ensures coverage and redundancy, so that the end user never goes without the service they need. Working with an MVNO that maintains multiple agreements means better pricing, more coverage, and higher speeds.

2. Advantageous pricing since MVNOs do not need to pay to maintain their own wireless networks. Most people assume that MVNOs mark-up wireless communication access in order to make money off of their contracts. Amazingly, the opposite is true. Since MVNOs do not have to maintain their own wireless infrastructure, their business costs are significantly less than the companies that do own their own networks A great MVNO will then pass those savings along to the consumer, making MVNOs the more economical choice.

3. Provide perks like hotspot data, free gifts, and pricing promotions. Most people come to MVNOs for wireless network access, but some perks and incentives can change a satisfied customer to an elated customer. A great MVNO will offer their customer more reasons to love them. Things like hotspots, pricing promotions, and free devices can really move the customer satisfaction needle.

4. Customizable packages to meet consumer needs. The big wireless access providers that own their own networks tend to provide the same services to everyone, regardless of their individual needs. Their packages are rigid, and if they don’t work perfectly for you, you are expected to adapt as the consumer. MVNOs enjoy more freedom than that, and good ones will offer customizable packages.

5. Fantastic customer service. Large companies can be frustratingly hard to get in touch with when support is needed. It is not uncommon for consumers to sit on hold for hours on end before ever speaking to a rep. Since MVNOs do not have to maintain their own infrastructure, good ones choose to put their resources into fantastic customer support so that their customers can always quickly and easily reach out with frustrations and questions.

6. Easy to use online service. Most people today prefer to handle everything online, which is why the most successful MVNOs invest in online services rather than brick and mortar stores. The easier online services are to use, the happier the customer.

7. Strong marketing. Finally, great MVNOs make sure that the marketplace knows who they are! The biggest name in the industry are the companies that own their own networks. Most consumers do not even realize that MVNOs are an option. Great MVNOs market their advantages, and market them a lot in order to convert and maintain more customers.

What makes a successful MVNO

Mobile Virtual Network Operators (MVNOs) play a crucial role in the market. They operate as the middlemen between mobile network operators who own wireless network infrastructures, and the end users who want to access wireless communications services. Every day, people rely on MVNOs to place calls without even realizing it. The mark of a good MVNO is its ability to reliably and seamlessly provide services such that all but the most savvy customers do not even realize that they are a part of the service equation. If you are considering entering the MVNO space, it is important to understand what success looks like, and the steps you will need to take in order to be successful.

Here are three more qualities that make a successful MVNO:

Reliability:

Frustration surrounding dropped calls is largely universal. When people today pick up their phones to make a call, they are not thinking about the incredible technology that allows them to reach anyone, anywhere, at any time. They do not consider the satellites circling the globe, the wireless network infrastructures that had to be created, or how that infrastructure is leveraged in a way that allocates network connection to them. MVNOs fit into that last and final part of the equation. They ensure that the technology and infrastructure that supports wireless communication is actually delivered to the end user in ways that make them usable. Technology and infrastructure do an end user no good if they cannot access it and use it. A good MVNO ensures connection every single time - without fail and without interruption. 

Cost-Effectiveness:

By purchasing bulk access to network services at wholesale rates, MVNOs can provide customized service at price points that work for their target markets. For example, the big 4 providers (AT&T, Verizon, Sprint, and T-Mobile) may not offer customized plans at the same level that MVNOs can. If your target market is price sensitive, as an MVNO you can slice and dice services in a way that is less expensive to the end user, and will therefore drive them to choose you over a large provider. 

Strong Relationships:

Successful MVNOs maintain fantastic relationships with the mobile network operators they purchase from. The fact is that MVNOs cannot exist without MNOs, so it is important for MVNOs not to bite the hand that feeds. Strong relationships led to better rates, quicker problem solves, and more services that MVNOs can eventually pass on to their clients. MVNOs that breed tension with MNOs do not last very long in the marketplace. This space is competitive, so in order to ensure success MVNOs have to network effectively.

How Telgoo5 Supports MVNOs:

Telgoo5’s modular platform offers an Omni Channel CRM, billing, online charging, and a payment engine that drives many of the global brands in the MVNO space. We handle business logistics so that MVNOs do not have to. We support connections between MVNOs and their target audience, and we are so effective that most end users do not even realize we are there. If you are looking to launch and/or maintain a successful MVNO, you need to work with Telgoo5.

Become a Data MVNO to Meet Urgent Work-From-Home Requirements

The value of internet data services is rising with each day. Work-from-home setups have necessitated employees and business owners to invest in Internet data. Whether it is through a stationary broadband connection or mobility, each type of data has its own value. Mobile Virtual Network Operator (MVNO) is a business model that fulfills the void left by MNO services. When it comes to data, an MVNO can dramatically increase its business revenue if it starts focusing specifically on clients’ immediate requirements. Nowadays, there are a variety of customers with different purchasing power, and a data MVNO is in the best position to fulfill their requirements.

Which MVNO Business Model is the Best Suited for Data MVNO?

There are different types of MVNO business models in the market. Without going into the real technicalities, we can categorize them into thick MVNO (with their own network setup), reseller MVNO who use MNO/MVNE network infrastructure and software solutions and thin MVNO who are a hybrid between thick MVNO and reseller mode. Although there are other models as well, the ones mentioned before are the most common.

Considering the exigent need of customers for data, each type of MVNO model can excel at data services, given it has a solid network platform, B/OSS and telecom billing solutions. Even the reseller MVNO can excel at data services with the right kind of software support and APIs. Providing customers self-care option where they can create their very own data plans, set the data limit and upgrade their plans is very much required for success as an MVNO.

Important Characteristics of MVNO Software in 2021

In 2021, you need to have a next-gen telecom support platform if you want to be successful. With an MVNO platform that has the following characteristics, you can serve customers’ data-related needs easily:

Online Charging System

Revenue assurance is very much needed in 2021 as you need to forge a bond of trust with your customers in these testing times. An Online Charging System (OCS) charges every service in real-time and ensures complete revenue assurance at every step. It also helps you monetize services quickly and enforce credit limits. Therefore, you customers never have to pay more than what is necessary.

CRM

The MVNO software needs to come with a CRM that is tailor-made to the requirements. If your customer care reps can access customer data quickly and resolve their queries in time, it becomes that much easier to foster customer trust.

As employees start working from home, you can expect a lot of amateurs to call support for help. A quality CRM like the one provided by Telgoo5 can really improve the entire process of customer services.

The Strongest Benefits to Starting Your Own MVNO

Let’s face it; starting your own mobile virtual network operator (MVNO) is not going to be a walk in the park. In fact, it is going to be a long, grueling, stressful, and time-consuming endeavor that will probably have you questioning whether the end game is worth it several times throughout.

Due to the competitive nature of the industry and the manner in which it evolves, you have to be at the top of your game (at all times) to maintain and build a successful MVNO network. Thankfully, Telgoo5 can be a go-to source for you (but more on that later).

For now, while you are still pondering the thought of whether or not you want to start your own MVNO, perhaps you would be interested in learning about some of the main advantages of doing so?

You Would Basically Be a Retail Business

Arguably one of the best benefits of pulling the trigger on this ordeal is your business would virtually act as a retailer. Remember, MVNOs do not provide their own cellular network coverage. Mobile network operators (MNOs) take care of this task and as an MVNO you would basically be leasing the coverage.

Therefore, the pressure of providing reliable cell service to your consumers is mitigated. While there will be a plethora of other concerns for you and your network, this is not going to be one of them.

Support is Always There

Do not make the mistake of believing that you and you alone will need to develop and start your own network. As with any business, getting it up and running can quickly become overwhelming and it is something you should not be doing by yourself.

Here is the good news; MNOs are not your enemies. In fact, they will become your best friends with the infrastructure support that they are willing to provide. However, they will not partner with just any brand, as you need to have all the technical details in hand.

Furthermore, there are also mobile virtual network enablers (MVNEs) that can help you through your journey. Backend support, such as customer service and outsourcing, can be delivered by such businesses. This is where Telgoo5 can lend a helping hand.

Our track record speaks for itself and when it comes to helping your network with the ins and outs (such as billing and customer service). Our clients are our biggest fans.

You Can Help Consumers Save Money

Not all of society is willing to pay the outrageous service charges that most MNOs offer. This is where MVNOs hold an advantage as they are able to provide cheaper monthly plans and services overall.

Chances are you have been in the shoes of such consumers so why not make a difference yourself?

No Concern of Cell Towers

This is somewhat obvious but is still worth mentioning. As an MVNO, you will simply be utilizing the cellular coverage that is provided by the larger carriers. Due to this, overall maintenance, cost, and concern of the cell towers themselves will not be under your control.

Indeed, there are several reasons why you should strongly consider starting your own network. The beginning is going to be one of the roughest periods but always know that we are here to help. Feel free to reach out, the Telgoo5 team is happy to answer any questions, anytime.

5 Key Trends in MVNO Service Providers

New research shows that by 2025 the global MVNO service market will reach about $95 billion, growing annually at 7.6 percent. The continued growth in mobile users worldwide and the rise in demand for data services has created a large market opportunity for MVNO providers. The expansion of services, such as mobile cash, M2M (machine to machine) and cloud is driving the demand further for MVNOs.

Here are five evolving trends that MVNO operators should recognize in order to enhance their scope of services industry-wide.

Innovators will Seize Leadership

While there is going to be a market for the conventional MVNOs for the type of consumer-oriented services they provide, innovation will create new challenges and lead to the emergence of new market leaders. MVNO network connectivity is no longer the critical differentiator. The new model of connectivity and a gamut of packaged offerings must now center around data-driven capabilities, vertical integration, super specialization, and improved customer experience.

Moving Data to Deliver Superior Customer Value

Unlike the traditional MVNO mobile model, the new model will focus on moving data in ways that provide greater value for customers, both individuals and businesses. Process automation could assist in moving of the data. It could move from business to consumer, consumer to business, or machine to machine – to and from multiple endpoints, delivering useful information and driving targeted actions.

Focus on Niche Market Segments and Specific Value Propositions

MVNOs are increasingly recognizing the need to offer customized value propositions for targeted client segments. This allows them to widen the subscriber base by bringing new segments without diluting the brand focus of the host operator network. In a sense, the MVNO serves as the operator’s “sub-brand” to enable them to provide mobile services to wider and diverse populations.

Service offerings of MNVOs are moving away from voice and text and becoming increasingly data-centric. Some are even trying to differentiate their value propositions by integrating with other products and services, such as enterprise cloud or gaming.

Technology Enablers to Expand MVNO Opportunity

Cutting-edge technology enablers are set to drive unprecedented market opportunities for MVNO providers. These include:

• e-SIMs

• NFV and SDN (Network Function Virtualization and Software Defined Networks)

• Artificial Intelligence (AI) and Machine Learning (ML) with data analytics

• Blockchain

• Edge Computing

These technologies will support more personalized services for customers, help provide data related to IoT device performance, apart from boosting reliability and efficiency in areas such as supply chain management, mobile banking, mobile payments, and microloans.

Next Generation MVNOs will be Enabled with 5G

Network slicing getting enabled through 5G deployment is likely to be another game changer for MVNOs. A new breed of MVNO service providers will emerge with a focus on verticals offering AI, big data, and cloud solutions, creating new opportunities for enterprises looking to take advantage of these advanced technologies.

Telgoo5 is Here to Help!

Whether you are an MVNO/MVNE or looking to launch one, Telgoo5 has the perfect solutions to augment your business. For any inquiries you can send us an email at sales@vcaremail.com or contact us online.

How to Start a Successful MVNO Business

Every day more and more people are turning to mobile devices for daily tasks. These devices help people with many aspects of their daily lives using IoT and apps. An MVNO is a business that ensures it supplies clients with great speeds. If you want to start an MVNO business, there are several things you need to consider:

Get the Right MVNE

The only way your MVNO business can succeed is by ensuring you use a good network. The right partner will ensure you have the tools to manage subscribers, manage the services you offer and have a good platform for efficient reporting and financial flexibility. You should get an MVNE with a lot of experience as it will be integral to the success of your MVNO business.

Pay Attention to Technology

Research by various MVNOs shows that 49% of survey respondents have indicated they will invest in technology soon. Once you have planned your business, you will know the technology you need to use. This is when you will need to do some research on what services are available.

For instance, you will need an analytics tool irrespective of the size of your business. Take note there is no point in investing in a business that does not generate meaningful data. There are companies, such as Telgoo5, that have developed robust analytics solutions. You and your clients need data that is complete and accurate.

Use Your Users as a Base for Your Business

The majority of technology companies have a weakness in which they base their business on the company’s own needs and desires rather than those of their client. For your MVNO business to succeed, you must understand that the services your business provides must be geared towards your clients. Things to consider include but are not limited to, customer service, operational processes, value-add bundle, and helpful products.

Optimize Marketing Efforts

Every business needs a strategic marketing plan. Without marketing, your business will fail before it starts. For an MVNO, you need to plan marketing initiatives based on your value proposition and user persona. You should consider doing things that other MVNOs do not do. This way, you can challenge and beat your competition, while reaching your particular audience. High-quality marketing will always guarantee an ROI (Return on Investment).

Focus on Operational and Customer Excellence

Do some research on successful businesses, MVNOs or not. For instance, companies such as Apple and Amazon have ensured their customers expect a certain level of service. These clients have zero tolerance for operational hold-ups and glitches.

With this in mind, you should ensure your clients get the best speed and excellent service. If your MVNO does not provide this, customers will switch to one that does. Support features such as a dedicated call center is a of necessity to run an efficient MVNO.

Bottom Line

All the above are major factors you should consider when starting an MVNO. The demand for MVNOs is consistently on the rise and is expected to grow. Starting such a business is a great opportunity for success.

The business will be successful as long as the focus is kept on the user and you have solid planning. Contact us now so we can help you start an MVNO business that will challenge and surpass the rest in the market.

Is Your Billing On Point

Billing is one of those things that businesses sometimes don’t give a lot of thought to, but smart companies in the telecom industry know that consistent and accurate customer billing is one of the cornerstones of a successful MVNO.

Some MVNOs handle billing in-house, tasking one or two staff members with what should realistically be the job of an entire department. The truth is, your if your billing is not on-point, your customers will suffer and look for other MVNO’s to get their service from. Since telecom billing is notoriously tricky, smart companies trust their billing to expert MNVEs.

Look For Flexibility

The telecom industry is always shifting and changing, which puts MVNOs in a challenging situation when it comes to billing, especially if they are poised to start scaling. As you get more end customers, your billing needs are going to adapt to different business situations. You need an MVNE that can adapt with you and offer real-time solutions to your customer’s needs. Smaller organizations simply don’t have the bandwidth to be able to support the level of growth that most MVNOs will experience, leading to customer frustration and annoyance on the part of the MNO.

At Telgoo5, we understand the importance of flexibility and ability to scale. Our sophisticated infrastructure was built to withstand shifting company demands and rapid scaling. What’s more, we can offer all of our MVNO partners CRM and BSS as well as a real-time view of business performance and trends!. Many of our long-term MVNO partners are US based companies that love working with us because they know that they will be able to scale with us and, we will be there to support their needs in a prompt and outstanding manner!

Look For Added Value

If you have an in-house billing department, or if you contract out to a smaller or less flexible MVNE, you won’t necessarily get bare-bones service, but you also won’t get all of the perks that come alongside working with a company that can address all of your needs on multiple fronts. Distribution and inventory management goes hand-in-hand with billing, and if your chosen MVNE doesn’t have the capacity to handle all three, you’ll have to find another one to attend to these services. Anyone who runs a business knows that dealing with multiple vendors can be costly and time-consuming.

Telgoo5 offers distribution and inventory as value added services to their billing plan, so you won’t need to be hopscotching between different vendors to get your customers the services that they need. With us, you can rest easy that it will all be handled in one secure, professional place!

Support Is Key

It’s hard to over-emphasize the importance of quality customer and tech support. You and your chosen MVNE are a team, and it should feel like a partnership. This is especially true if you’re scaling, taking on new customers or dealing with additional products. Customers depend on detailed, accurate and itemized bills for their telecom service, so you need to know that your MVNE has your back. That’s why you should be in regular contact with your MVNE about billing and other areas of your business.

At Telgoo5 we pride ourselves on taking our relationship with all of our MVNOs very seriously. You have an account manager who is responsible for handling your needs, and weekly calls to handle any concerns that might crop up. Additionally, we have an escalation procedure that is specifically designed to get to the root of any problem as efficiently and effectively as possible. We prioritize consistency and organization because we know that they are the cornerstones of a successful MVNO/MVNE relationship.

Anyone in the telecom industry knows that billing can be the trickiest part of the business. When you’re dealing with multiple customers and a host of different services, getting billing down perfectly poses something of a challenge. That’s why it is imperative to make sure that your billing is on point. The best way that you can do that is linking up with a smart MVNE that has your best interests at heart. Let an MVNE like Telgoo5 take billing off your plate so that you can focus on growing your business!