Posted On: October 21, 2016, By: Rishu Kapoor295 Views
Running an MVNO business has never been easier and competing with mainstream players of telecom sector is a tough task in itself. With the entry of banks, financial companies, and retail chains including supermarkets in the MVNO market, the MVNO model is on the rise. As per the reports by Lansdowne Consulting and Informa Telecoms & Media, MVNO subscribers are estimated to double in size – approximately from 170 million worldwide in 2014 to 270 million at the end of 2018. So, its time for companies to understand the challenges of setting up & running an MVNO & above all, making a successful venture with support solutions for MVNO.
Concentrate on Differentiation:
With the maturing MVNO market, the price is no longer the differentiator. Although it still holds a great weight while making strategies but there are other parameters that need to be kept in mind. Companies with non-communication background have penetrated the MVNO market & can afford to engage in a price war with the established players. But the bigger players can’t leap out on the price terms.
Value added services highlighting the unique propositions of the company & likely benefit the customer would definitely attract a lot of users & open up new revenue opportunities for the MVNO. A good customer care & a high-quality service are the key differentiators that helps an MVNO stand apart from the competition.
Adaptive to explore niche market:
The main challenge in front of MVNOs is to expand the market without affecting the existing business. Operators need to be flexible & adaptive enough to explore the niche markets, capitalize on every opportunity. The service provider must identify new segments of users to target & secure the customers for themselves. The established players are not adaptable enough to this practice but the MVNOs can leverage this in terms of greater reach to unexplored niche segments.
Strong Relationship with Parent Operator:
A strong & healthy relationship with the host network operator plays a key role in an MVNO’s success. There are chances when an MVNO could be in a direct competition with the parent network provider. The targeted segment should be effectively chosen in order to avoid a direct war with the host operator. This in turn enables an MVNO to focus more on the unique propositions & target the segments of the markets that have been left untouched by the host service provider. They must learn to diversify their services & use innovative methods to reach out to the targeted users.
With the new innovations in MVNO market, it becomes extremely important for the MVNO to be flexible enough to tackle the challenges. They need to improvise on the MVNO Solutions effectively to reap benefits out of the low margin models. Diversification of services, adaptability to explore new revenue streams, seeking Support solutions for MVNO from solutions providers like KocharTech, enable an MVNO to generate additional revenue streams. MVNO Solutions allow a service provider to reduce IT Complexity, improve service delivery, enhancing a consumer experience. It allows them to focus on areas like customer experience, better quality of service which are the key differentiators to stand any business apart from the rest of the competition.