The mobile virtual network operator (MVNO) business is booming again, with new MVNOs launching nearly every week. But unlike the MVNO craze of the 2005-2006 era--highlighted by high-profile failures like ESPN Mobile, Disney Mobile, Amp'd Mobile and Helio--analysts believe that today's MVNOs have a better chance of success thanks to increased operator support.
Carriers are making the offerings more competitive and have opened up the networks to MVNO’s. In the past, an MVNO had to drive a certain level of volume to make it. It was risky, expensive and a very big undertaking. Operators are hungry for these MVNO partners because MVNOs can help them to grow their market share. MVNO’s serve as an inexpensive distribution channel to bring users to their network and reach markets where they might not otherwise have visibility or access.
Carriers often use MVNOs to reach segments of the market that are not as profitable to them, or that may dilute their core brand but operators have to be careful and make sure that the MVNO is profitable and won't be a drain on the network. Many customers don't need the latest, greatest speeds or smartphones, they just need something that they can use to affordably talk, text and have some data.
One way that carriers are helping make the MVNO business a success today is by enabling many of the back office functions that the MVNOs of the mid-2000s had to do on their own like billing, customer and marketing support and sometimes even device procurement and distribution.
GWT provides a great forum for Carriers, MVNO’s and agents to be introduced and forge successful relationships in this rapidly growing market.