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07 December 2023

Enabling MVNO propositions - 1: Mobilise your service portfolio

The global MVNO market is set for a new surge in growth, with analysts predicting a rise from 2023’s $85 billion to $117 billion in just five years. Which makes sense: by enabling its MVNO partners to deliver propositions for new market segments, a mobile operator can leverage its investments in networks and spectrum.

Even better, this is a form of co-operation that allows the MVNO partner to build brand profile and loyalty by providing specialised, niche customer propositions. As a result, both MVNO and the host MNO make money.

The devil, of course, lies in the detail: not all MVNO ideas are good ones! And even if the customised package you have in mind has commercial potential, not all MNOs prioritise this kind of work.

So, picking your niche is about more than a vertical question or what kind of subscriber you want to attract. It is also a horizontal one—what specific slice of technology or functionality should you be looking to exploit?

Extending your brand delivers customer value and loyalty

A great place to start is to ‘mobilise’ an existing business-customer relationship. Say you’re an ISP, or a power company, or offer pet insurance: adding a new mobile service on top of what you’re already offering your B2B and/or B2C customers will significantly enhance customer value and loyalty.

Why? You’re essentially making your service or your brand even more valuable to the consumer. Linking your mobile banking app to the customer’s mobile SIM gives them enhanced security, for example. It also provides a connected communications channel for the customer. Offering to link smart metering of energy usage and tips for dealing with the Winter freeze to my new mobile account works the same way.

Essentially, by bundling a mobile service on top of the services you already offer, you extend existing loyalty - by helping the customer also save money on their texts, international calls, or Internet access. Right now, with inflation and the cost-of-living crisis, that is going to sound great to a lot of people.

And there’s obviously a cross- and an up-sell opportunity, too. If you can persuade me that I could save even more money by using your new mobile service and get even more discounts or savings, I’m in. Putting your name on more than one thing I buy from you is also psychologically reassuring: 68% of businesses find that brand consistency has contributed to revenue growth of 10% or more.

If done right, all these benefits can be accessed very cost-effectively for a brand that works with a nimble MVNO service supplier. Interested? Then you probably want to be looking for help from something like Digitalk Mobile Cloud.

Why? Because it’s a modular platform built on a core of real-time service activation and charging controls. That means it has a wide range of automated tools, from integrated billing to CRM to self-service, to help you quickly get a valuable brand-friendly MVNO service up,

Interested in learning more? Watch out for our new paper, in which we explore different MVNO models in depth.

Digitalk Mobile Cloud: your best way to mobilise your existing offering and make it even more sticky.

This is the first of a set of planned deep dives into current and near-term MVNO market opportunities that Digitalk Mobile Cloud could help with. Next up: Unleashing the digital MVNO.

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