More on MVNOs

Few commercial relationships are as complex as the one between MVNO and MNO.   Is it a Partner or competitor?  A friend or a foe?  An accelerator or a millstone?  In fact, it is often all of these things at the same time, depending on how and when you look at it; making it the Schrödinger’s Cat of the Mobile Universe.  And it is these inherent contradictions that propel the MNO and the MVNO through the normal relationship lifecycle at bewildering speed.  From first meeting to signed deal may involve a long gestation, but from that point onwards nothing ever stays the same and the “honeymoon period” is usually particularly short.  What follows is the difficult stage, often with failings on both sides, when the relationship can be tested to breaking point.

The MVNO needs to know that the MNO is compliant with the various KPI commitments and parity guarantees, but it often has to rely on data supplied by the MNO to do this and this can creates a relationship-straining situation where the MNO is both judge and jury.  This is where Azenby can help – in both the commercial and technical arenas.

Azenby brings current, real-world negotiation experience combined with the knowledge necessary to bring the MNO to the table.  Many factors shape the commercial deal between the two parties including knowledge of current local & International pricing trends.  An MVNO that is not aware of what the current wholesale supply market will sustain will always either under-play or over-play its hand, asking for too little or too much in terms of price reductions or commercial enhancements.  Being able to move to a new MNO (or credibly threaten to move) can be critical in getting the MNO to the table.  MNO independence may never be used but it is invaluable in renegotiating a sound deal with the host MNO.  Azenby’s experience and expertise in this area strengthens the MVNO’s hand.

MVNOs come in a bewildering variety of forms:  Technically they can be “light” of “heavy”, or anywhere in between, depending entirely on the extent of telecom assets that the MVNO chooses to deploy.  Commercially, wholesale supply models can range anywhere from “retail minus” to “cost plus”, with multiple variants possible at each point on that spectrum.

Retail propositions can be classical or revolutionary.  Market segment focus can be general or specific.  The strategic logic for embarking on an MVNO can be standalone profitable: or defensive; or customer centricity; or future-orientation or any of several other alternatives.  Speed of deployment can be rapid or glacial, sometimes for good reasons, sometimes for bad.  There is no single MVNO set-up that is right in every situation.  Each has its pros and cons depending upon objectives, constraints and strategies.

The Azenby Approach:

Our recent work with a variety of MVNOs confirms our belief that MVNOs generaly are in very good health.  At Azenby over the last few years, we have been busy helping several of them to emerge and evolve.  We have also been active in supporting potential MVNO entrants to assess the options, plan strategies and navigate pitfalls.   To those who think that the MVNO is dead or that the MVNO opportunity has passed, our advice is, “Think again!”

Azenby has found it can help clients navigate to the right solution from the vast array of options.  The goal always is to avoid unnecessary complexity, time and expense so as to give an MVNO, the very best opportunity to thrive.  Choosing the right solution will often involve a finely balanced decision between a solution from one vendor and similar but different solution from a different vendor.  Helping clients clarify to differences between 2 solutions that on first sight look almost indistinguishable is an important aspect of the process, as is evaluating the credibility of the suppliers.

Speed of deployment is often a critical factor for new entrants, and we can advise on realistic timescales against different approaches to reduce risk.

The technical language used by vendors further complicates the task that confronts those on the MVNO journey, as does the ongoing rapid evolution of the 3GPP standards that govern mobile telephony.

Whether you are an existing MVNO seeking to move up the food chain, a new entrant looking to take a first step but unsure whether that should be a big step or a small one, or even an MNO looking to acquire and serve MVNO clients, the need for a trusted adviser with proven experience is invaluable.

Case Studies

A major content and telephony provider with a household brand was looking to move into the mobile space in the UK market by way of an MVNO.  Azenby provided commercial and technical support throughout the journey, from the earliest phases of the initiative through to procurement & deployment. This included the national roaming airtime contract, roaming solutions, SIM supply, international SMS hub services.

Azenby has also assisted various client MVNOs to disaggregate international roaming services from national MVNO access.  Traditionally MNOs have tried to insist that both national and international service should (or must) be obtained from the MNO with arguments being raised by the MNOs on various grounds including the perceived complexity involved in the disaggregation.  But times change and with Azenby’s support MVNOs have successfully obtained worldwide roaming access from a different MNO than is used by the MVNO in its home country through the use of multi-IMSI SIM cards.

A number of factors are coming together at the same time which promise to allow MVNOs to radically transform their business performance and at Azenby we look forward to helping this future be realised.

If you would like to know more please contact us.

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