With the MVNA/E model eliminating the need for MVNOs to negotiate directly with MNOs – a significant hurdle for new businesses – it’s easier than ever to set up as an MVNO. However, getting started is no guarantee of being successful. And with new MVNOs emerging all the time, competition is fierce.
According to Transatel, a European MVNA/E, there are four key areas that a new MVNO must crack in order to thrive in the current market: pricing, differentiation, marketing, and distribution.
Pricing has been a focus since the beginning of MVNOs – low-cost international calls being a typical example – but to get ahead in today’s competitive marketplace, you need more than just a promise of cheap calls.
Bringing something new to the table, or having a USP, is crucial for the success of a new MVNO.
This might mean appealing to a gap in the market that has been overlooked; offering a better pricing structure; adding services that customers haven’t seen before; or even trying a whole new business model.
Whatever it is, it should be noticeably different to what’s currently available.
Any new MVNO will need a killer marketing strategy in order to get ahead of its competitors.
Making prospective customers aware of what’s different about your offer could make or break your future, so don’t skimp on implementing a sturdy marketing plan.
Traditional resale channels are saturated with competition, with retailers often choosing to push the products with the highest commission. As a new MVNO, you should give careful consideration to how you will distribute your product.
On top of this, you need to make it as easy as possible for MNO customers to change over to your network. And if you’re a Pay As You Go MVNO, your top-up facility needs to be simple, too.
If you’re setting up as a new MVNO, SmartIPX is ideally placed to assist in proving your business plan quickly and cost effectively, on a scalable carrier-grade network.
Get in touch now to discuss how we can help you get ahead of the game.
Further reading: http://commsbusiness.co.uk/features/the-mvno-challenge/