5G: New opportunities and challenges for MVNOs
The possibilities generated by the 5G are still being explored, since the connection created by the technology will happen at speeds never seen before. Consumers, increasingly used to consuming services on their own terms, will benefit from solutions tailored to their needs, and operators, in turn, will be able to deliver better experiences with greater efficiency and speed. Below are some examples of the operations and business of Mobile Virtual Network Operators (MVNOs) can be impacted by the consolidation of the fifth-generation mobile network.
Reach beyond the large urban centers
In emerging markets, major operators are responsible for most of the communication services coverage, however small providers play a key role in coverage areas outside of large urban centers.
As the 5G grows, the improvements in reliability, bandwidth, and increased efficiency in networks will open space for Mobile Network Operators to share network resources to a greater degree and extend this capability to MVNOs. This scenario paves the way for smaller companies to reach hundreds of cities faster than larger operators.
A market where small providers can offer converged services in places where traditional operators would take longer to reach, becomes more competitive and dynamic. New business models can emerge, bringing more service options to consumers who are in different demographic zones.
The new generation Internet network increases connection stability, which offers greater security in data transmission. When well processed through solutions that automate its reading, for example, this information generates a massive impact on market intelligence and knowledge about customer habits.
The increase in data transmission on mobile devices multiplies the possibilities of personalizing the company-consumer interaction. Once data reading tracks the user wherever he is through his mobile devices, brands can increase the effectiveness of their communication through geolocation-based campaigns and real-time messaging.
For the end user, the primary effect will be a wide range of services offered, as well as the improvement in the multimedia content quality, such as videos and audios.
MVNO growing markets: New Business Models
If compared to the second and third generation networks (2G and 3G), for example, the fifth generation will create greater network sharing opportunities, which will consequently increase the possibility of emergence of new business models according to the level of quality offered by the service. For both new players and traditional companies, this scenario encourages the creation of new MVNO models, increasing the possibility of reaching new market niches and increasing revenues.
In mature markets such as Europe and the United States, companies are already investing significantly in new business models. One of the main changes is the sharing of passive and active infrastructure of 5G networks, where operators sharing the structure can reduce investments and environmental impacts at the same time.
Key factors for MVNOs to safely ride the 5G wave
With the considerable boost in the volume of data to process, it is natural that companies face challenges in managing and handling it, so investing in solutions that turn data into relevant information for decision-making becomes critical.
Factors such as a more meaningful relationship with subscribers, personalization and engagement tools will be key for MVNOs to have their space in the 5G era successfully.
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Sicap is a global telecommunication solution provider enabling Mobile Network Operators and Mobile Virtual Network Operators (MVNOs) to deliver an all-encompassing customer experience to make the mobile world more profitable, manageable, and secure.
Founded 20 years ago as a Swisscom spin-off, Sicap now works with 80 mobile operators and MVNOs (mobile virtual network operators) in 76 countries. Its international team is available worldwide to ensure excellent customer service.
Today Sicap is part of Lumine. Lumine Group is a Portfolio of Volaris Group, a subsidiary of Constellation Software Inc, a global multi-billion-dollar company based in Canada and listed on the Toronto stock exchange.
Sicap solutions are built on its superior expertise in mobile device intelligence, SIM and device management, and big data analytics. The solutions are grouped into three areas: Device and SIM Management, Customer Insight and Engagement, and Mobile Security.