How can MNOs and MVNOs reinvent their traditional business models? 
 

With the development of recent technologies such as 5G and the evolution of the IoT (Internet of Things), traditional virtual network models are designing strategies to reinvent themselves and remain competitive in the market. This has led to the emergence of an increasing number of B2B services and solutions that support operators in analyzing the present conditions and creating new revenue streams. Here are some examples of how some of the top MNOs (Mobile Network Operators) and MVNOs (Mobile Virtual Network Operators) are transforming their business strategies. 
 

Models that are in line with the Internet of Things 
 

Opportunities in the IoT are expanding for both B2B and consumer market types. New players will seek to enter the MVNO model sector as they recognize the benefits that exist in this ecosystem, which will result in a rise in competition and complexity of the market. MVNOs may, however, continue to provide services to current customers while operating as MVNOs in new regions and pursuing new B2B prospects without building additional physical networks. 

The growing volume of devices connected to each other and to the network opens space for new businesses at any point in the value chain. Traditional MVNOs are already operating in integrated business models, such as home monitoring and new services for laptops, tablets, and wearables, for example. 

In addition to the possibility of increasing revenue by offering new services, managing multiple devices generates new sources of data, and with management that can convert the acquired information into a business decision, MNOS and MVNOs can at the same time provide intelligence to other businesses and build segmented communications to the consumer market based on the acquired information. 

 

A digital mindset is key 

 

Speaking of data, the ability to turn information into decisions is key. Many are looking to reinvent themselves through solutions built on data. Some of these solutions can provide in an automated way benefits to customers, whether end consumer, or other businesses.  

According to the GSMA Intelligence Operators in Focus Survey 2020, the rise of devices supporting eSIM, for example, increases the use of digital delivery channels and creates opportunities for MNOs and MVNOs to make their service more efficient, reduce costs, and automate processes. As the study mentions, transforming the user journey into an increasingly digital and automated experience is mandatory for companies that want to future-proof their business model. 
 

Be prepared to differentiate yourself from new entrants 

 

The more complex the value chain of communication services becomes; the more challenges arise for traditional MNOs and MVNOs. Today, a mobile strategy and a mobile application plan are necessary for almost any product, gadget, or service. Companies that can offer a service that is currently unavailable will have an advantage over their competitors in the market. 

As more companies become MVNOs and look to take advantage of emerging digital business prospects, they will continue to try to replicate the essential services offered by a traditional network operator. However, operators that are already established in the market have the advantage of having improved their services over time. In this scenario, traditional operators could innovate in their services and develop differentiation strategies. 

Reducing operational costs and increasing opportunities for creating new, ultra-targeted services becomes critical for traditional operators looking to reinvent themselves. With solutions that enable device management and provide information about the subscriber base, MNOs and MVNOs will have better opportunities to create new services, set greater pricing options and reach new market segments. 

Want to know more about how Sicap’s solutions to reduce churn? Download our eBooks with the details of our solutions and Request a demo today. 

About Sicap

 

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.  

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