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08 May 2024

Enabling MVNO Propositions - 5: Rejuvenate the Budget Offer

Streamline the budget MVNO from launch to operation

In March, Hollywood star (and Welsh football team co-owner) sold his MVNO, Mint, for $1.35 billion. But its new owner—one of the biggest telcos in the world, T-Mobile—isn’t changing its super-cheap $15-per-month plan.

Instead, it intends to continue to support subscribers on its network, running it as a separate business unit. Again, despite being owned by another huge operator, Verizon, customers of another US cut-price consumer mobile service called Visible, still get to choose which plan they want to pay for. In the UK, there are multiple mobile phone plans from just £5 per month for a basic SIM-only contract; Talkmobile, a no-frills mobile service running on the Vodafone network, is gaining a lot of popularity—possibly because it features more full-service mobile options like 5G plans and Wi-Fi calling.

What makes it worthwhile for these huge companies to offer such cheap, flexible, SIM-only contracts? It’s the point of the whole mobile virtual network concept: offer an amazing package at a compelling price to a demographic that would otherwise leak to the competition.

But these propositions only make sense if they can be run as efficiently as possible. Really, the brand really needs to focus all its effort on the sales and marketing needed to make this fly; it’s a brutally competitive market, after all. The business needs to focus on brand identity and messaging to resonate with the target audience, crafting a great marketing plan and the right partnerships, promotions, and referral offers to attract customers.

Delivering budget MVNO value

All this means your job as the MVNO is to get the operational basics as favourable as possible. This starts with the foundation of a great wholesale agreement. From there, you can quickly build highly streamlined operations, like giving the brand the ability to make rapid changes to product pricing and offers. And don’t mistake ‘budget’ for ‘inferior’; the offer has to be premium grade in terms of reliability and availability, as unreliable service will both poison your service reputation and cost unwelcome support costs to get subscribers back.

Digitalk Mobile Cloud provides this level of bullet-proof back-end functionality and carrier-level customer experience. For one, it’s so easy to tailor your new MVNO bundles and features.

It’s also a snap to provide the incremental services and features that add the value the budget MVNO service price so highly. Here, imaginative ideas like different speeds for pricing tiers and innovative data sharing policies are a click away.

Easy on-boarding and seamless self-care are crucial too. From simple sign-up through eSIM download to managing your own service, end-to-end digital customer engagement streamlines the entire customer journey.

Revenue collection must also be user-friendly and friction-free. Luckily, Digitalk Mobile Cloud comes equipped with tight integration with all the card, voucher, and e-top-up integration even the most absent-minded teenager will love.

MVNOs agree that Digitalk Mobile Cloud is the best way to take all the technical and operational work out of launching a budget mobile proposition.

And as it’s also the best way to maintain the high levels of efficiency and service agility that a brand will value to make a budget mobile service work, using the platform is just a no-brainer for this kind of business.

If you want to read more, download the full paper to explore MVNO strategies for success and business model options.

This is the fifth in a series of planned deep dives into current and near-term MVNO market opportunities that Digitalk Mobile Cloud could help with. Next up: The International MVNO.

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