Top 5 trends for MVNOs in 2019

With the increasing demand for advanced technology, brings new opportunities. The challenge now lies towards MVNOs and their MNO counterparts to make significant shifts in the mobile network industry. Susan Welsh de Grimaldo claims,

“MVNOs have a real opportunity to improve lives and societies by opening up the benefits of mobile services.”

In this article, we dig into the top five trendy topics for MVNOs while pointing out the key questions to consider for the successful advancements in the tech.

MVNOs solving specific market value and segments

MVNOs are now focusing on specific value propositions to target customers of a particular market segment. They are adding extra segments to their client base on the host network carrier while maintaining focus and the brand of their host carrier. They achieve this, by acting as ‘sub-brands’ of their MNO; to help widen their market reach to more users.

MVNO services have largely shifted from calls and texts to data plans. On the other hand, some have created varied value propositions, piggybacking on the integrated output from their host carriers, such as gaming, and other enterprise cloud solutions. Elsewhere, the consumer platform has also been affected. The convergence of mobile plans helping with the growth of stickiness and the reduction agitation, several cable companies are extending their reach to mobile, using MVNOs as a faster, and more affordable market entry strategy; rather than building network infrastructure. The support of both ‘Bring Your Own’ (BYOD) and use of refurbished devices have allowed for faster growth of MVNO. MVNOs are now selling faster, and are more accessible, supporting even the older generations of phones, allowing users to adapt.

With the continuous industrial digitization, we predict an increased number of MVNOs who will be targeting the Internet of Things (IoT) and other global connectivity. A good number of these virtual carriers are going to continue to bring in advanced connectivity technologies, which will blend well with a wide range of devices, services and other gadgets that can connect. Whether it is vehicles, wearable, and other industrial equipment.

MVNOs are at the forefront of innovation and transformation

The competition in the network industry keeps mounting, with MNOs raising price rates for various mobile plans. These network carriers are now offering tailored services for specific categories of users: youths, military, migrants, and elderly; there’s need for MVNOs to step up and provide better, and more affordable plans. They need to innovate and come up with better price structures for these plans.

In particular, MVNOs have put more effort into strong WiFi provision, as its first propositions to lower costs and increase the quality of service delivery. For instance, Republic Wireless built Bonded Calling, with the aid of cellular to improve the quality of WiFi Calling. Moreover, Google Fi was the first MVNO alternative to use different host network providers, together with intelligent switching between networks. It was also the first WiFi approach with built-in security.

Additionally, MVNOs are also on the forefront of digital transformation; to a more flexible, client-based, and smooth operations, with an ideal cost structure.

New technology enablers drive new opportunities for MVNOs

These five new technology moves will allow for MVNOs to expand their market reach:

  • eSIM; will help with next-gen connectivity and will improve the user experience.
  • Network Function Virtualization (NFV) and Software Defined Networks (SDN); both these will create new levels of fast time-to-market (TTM), self-service, as we use virtualized packet gateway (PGW) on the host provider to help control the prices of wholesale data through traffic customization to lower video traffic prices.
  • Artificial Intelligence (AI) and Machine Learning (ML); along with data analytics to support advanced user tailoring and the next ideal action – or rather to offer data on the device operation on IoT, and more effective performances.
  • Blockchain; market segments like mobile payments, mobile banking, and microloans, and from ecosystem conjunctions to supply management.
  • Edge compute; MVNOs now have the freedom to choose to provide distributed computing power of their target market. This comes with the ability to tap into specified targets, allowing them to offer mobile plans of their host network. They can also use a different MNO’s edge computing to offer a variety of services to its client base.

5G will enable a new generation of MVNOs

The introduction and implementation of 5G technology has allowed for network slicing; we predict a new generation of MVNOs aiming for a specific consumer line, and solutions that add to their tailored connection requirements, as well as cloud services and big data solutions.

The expected MVNOs will bring new market opportunities for both startups and young entrepreneurs to utilize the capabilities of AI, big data and other cloud solutions. With SDN in play, we predict more self-centered portals for enterprise solutions, which could expand to accommodate an enterprise MVNO to assist in speed up TTM for stacking up options to startups.

MVNOs are benefiting the society

MVNOs are poised with great opportunities to better lives, and the society as a whole, by offering mobile plans at subsidized rates to cater for lower and middle-class families. Startup companies and entrepreneurs also stand a chance to benefit from MVNOs, to be able to speed up their expansion into their target market; thusly, allowing them to contribute to local economies.

Additionally, IoT based MVNOs have the capacity to offer solutions to the global climate and other environmental issues, by connecting agricultural and smart transportation. Improving healthcare and developing smart cities is also within their scope.

Important questions MVNOs need to consider

  • What are the best value propositions that blend well with potential market segments?
  • What are the best-positioned brands to offer a specific bundle of solutions?
  • How can MVNOs create a variety of distinct IoT solutions?
  • How can MVNOs make the best of the new upcoming technologies

Wrap up!

MVNOs are currently doing their best to embrace innovation while staying flexible to the ever-evolving technology demands. These virtual network providers are now shifting their focus to address specific market segments – using new technologies; with the end goal being to try and open up new opportunities and improve mobile services delivery. And while they’re making all the efforts, MVNOs are yearning to support low-income families, as well as startups and young entrepreneurs.

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