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Creating or developping an MVNO activity

Creating or developping an MVNO activity

By Sylvie Lorrain - September 16, 2013

For over 15 years legacy operators and new telecoms entrants have solicited Sofrecom's assistance in launching or optimizing an MVNO (Mobile Virtual Network Operator) or MNO (Mobile Network Operator) activity.

Sofrecom has recently revamped its service offering to be able to support all the needs of MNOs and MVNOs in the fields of marketing and customer service (products, prices, distribution, communication, operations, support), networks and IT.

In all developed countries we find MVNOs selling mobile telephone services. They are also appearing in the AMEA zone where they challenge or complement traditional cellcos. Whatever their level of maturity, MVNOs must find an approach that differentiates them from rivals in very specific consumer segments.
MNOs too are adopting new strategies in reaction to competitive pressure in order to win market share and defend their customer base. Creating or transforming an MVNO can be an interesting way of leveraging growth, for example to earn new income from underexploited network capacity, to "occupy the ground" in highly coveted markets or to win new customers through well-targeted positioning and publicity.
Both MNOs and MVNOs face multiple challenges: they must find a specific positioning and brand image to seduce their target consumers; they must develop brand recognition as new-entrant service providers; they must create synergies with their existing activities while breaking into mobile telephony to generate new revenues; they must find a partnership with a real operator in order to benefit from his technical know-how and create value through excellent customer relationship management.

In-depth knowledge of MVNO challenges

Sofrecom's Prospective Department has monitored the MVNO market for many years, analyzing its trends and outlook. We have detailed understanding of the problems faced both by classic operators and MVNOs striving to adapt to fast-changing consumer usages and expectations.
Our consultants collaborate regularly with Orange Group and its MVNO Division to assist new MVNOs, sometimes making a partnership with them and, depending on their degree of autonomy, providing the services necessary to conduct their business. Our knowledge of the MVNO ecosystem enables us to anticipate needs and propose tailor-made solutions based on a proven methodology.

A complete service offering for MVNOs and MNOs

Sofrecom's new offer is built around three types of challenge: strategy and positioning, negotiation and partnership, and deployment and performance.
The goal is to help MVNOS and MNOs develop their business and operational efficiency. We study the particular needs of each client, taking into account their own competences, to determine what support they need to apply an original strategy to attack highly specific market segments. In all cases we promote win-win relations between MNOs and MVNOs.
For an MNO, creating an MVNO must serve to diversify his business but without tarnishing the brand image or damaging the global strategy. Sofrecom can help MNOs to conquer niche markets, to make part of their network capacity available, and to identify potential partners by carefully assessing their advantages and strong points. We can assist in the negotiation of a balanced contract, then help to minimize operating and maintenance overheads. Sometimes we go even further, helping clients to manage the changes in their organization engendered by their new MVNO.
To support MVNOs, our knowledge of the competitive environment enables us to identify consumers that could be usefully targeted. We can find partnerships with MNOs and define business models, differentiating services and the required network architectures. As in the case of MNOs, Sofrecom's experts can help find the best partner, and even prepare and conduct the negotiation stages.
For all types of players, from a simple reseller of network capacity to a "full MVNO" who actually owns certain network infrastructures, Sofrecom applies its expertise and experience to launch and develop this value-generating activity and to adapt the enterprise strategy to this particularly volatile market.

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