The Compound Annual Growth Rate (CAGR) for MVNOs is 7.8%.
As more and more people turn to mobile devices to conduct their daily lives through apps and IoT, they will require greater speed, and the best MVNOs with solid business plans, will increase their revenue and keep growing.
What does it take to become a successful MVNO? In this article, we’ll explore MVNO growth and trends, and provide six of the top tips for running an MVNO that thrives.
Global MVNO growth
According to Grand View Research, the global MVNO market size is expected to reach USD 94.82 billion by 2025.
Image Credit: Fortune Business Insights
MVNO market growth may be due to the growing number of mobile users around the world, and a need for data services.
In addition, the advent of IoT, together with rising services, like the cloud and mobile money, social media, mobile apps and multimedia services are set to propel further demand for MVNOs.
Global MVNO trends
The best MVNOs are:
- Focusing on providing services to targeted niches, as a new and profitable mechanism of making more money.
- Transforming and innovating cost structure and value proposition in order to differentiate themselves in a saturated market.
- Using deep analytical insights to make better business decisions and improve the customer experience.
- Going to utilize 5G to develop new services and target markets for cloud and AI/Big Data solutions. Dario Talmesio, principal analyst at Ovum, says, “MVNOs were late in the 4G days but cannot afford to repeat the same mistake with 5G. Start planning now.”
Top tips to run the best MVNO
Based on trends and research around the best MVNOs, here are the top tips for MVNO success:
#1: Choose the right MVNE
MVNOs services are only as good as the network it uses, so it’s vital to choose the right MVNE to connect you to the right MNO.
The right partner will allow for financial flexibility, and a flexible platform with good reporting and tools to manage services and subscribers.
Look for MVNEs who have a lot of experience because your MVNO will benefit from their expertise.
#2: Plan and define your USP
The best MVNOs look for different ways to set them apart from their competitors, as the market is so saturated.
Finding the right narrowed-down niche typically means identifying markets that are located beyond the reach of the usual marketing methods.
When planning and defining your USP, focus on:
- Service, and
- How will you make money?
#3: Use the right technology
MVNOs Series reports that 48.3% of MVNO survey respondents said that they will be investing in technology over the next year.
Once you’ve done your planning, you’ll know exactly which technology you’ll need, but it is advisable to do your homework on what’s available.
For example, no matter your scope, you will need an analytics tool, but what’s the point of investing in one that does not generate meaningful data? Adapt IT｜Telecoms developed a robust analytics solution after 18 years of telecoms expertise and experience, and the technology, unlike many others, provides data that normal people can make sense of. Data is complete and accurate.
There is nothing else like it on the market today.
#4: Base your business on your users
Technical companies often make the mistake of basing their business on their needs instead of their customer’s.
The best MVNOs understand that everything in the business must be geared towards the customer: helpful products, value-add bundles, operational processes, customer service, and so on.
#5: Optimize marketing efforts
Plan marketing initiatives based on user persona and your value proposition. Do things that other MVNOs are not doing to reach your particular audience.
Make sure your marketing is of high quality.
#6: Focus on customer & operational excellence
Companies like Amazon and Apple have made consumers expect a certain level of service. They have little patience for operational glitches and hold-ups.
They want speed and demand excellence. If your MVNO does not give it to them, it’s easy for them to switch to an MVNO who does.
Technology to enable excellence is of utmost importance. By the next year, it is predicted by IT News Africa, that 80% of telecommunication companies will make use of technologies like VR, chatbots and mobile apps in customer interaction processes.
Use analytics and churn tracking technology to understand subscriber behaviour and what your users want. Always focus on the customer experience, and making continual improvements to customer touch-point processes.
The time for MVNOs is now. Never before has there been so much opportunity in the industry.
The future looks good; as long as solid planning is done, and the focus kept on the user.