The MVNO model has been in prevalence for more than one decade. It has been relatively successful in the developed world, which can be gauged by looking at the projected Compound Annual Growth Rate (CAGR) of over 9% between 2017 and 2022. Of late, the technology powering MVNOs in the developed world is reaching developing countries such as Thailand, India and Philippines. As a result, we are expected to see a striking change in the fortunes of MVNO in the developing countries. One of the most coveted MVNO technologies pertains to convergent billing, which is implemented by a centralized real-time charging system like Online Charging System (OCS).
High Time for MVNOs in the Developing World
Although the rising growth of Mobile Virtual Network Operators (MVNOs) is mostly seen in developed countries such as the US and Japan, it is the developing countries that can benefit the most from proliferation of MVNOs. Below are some reasons for that:
There is no such thing like minimum wage in most developing countries. Most people just scrape by and lead harsh lifestyles. They have a bigger need for slashed-price MVNO services than people in the developed world. MVNO model can be extremely successful, if budding entrepreneurs are provide a fully-functional telecom support platform. They can benefit from government subsidies; tax benefits etc. and earn a handsome profit by catering to people who are financially weak.
Larger population to target
A Mobile Network Operator (MNO) has unique policies, which do not appeal some sections of the market. There are many people who are either not using MNO services or looking to make a switch, if you can come up with cost-effective offers. With the help of competent MVNA and MVNE, the MVNOs in the developing world can forge profitable relationships with MNOs and also access readymade hardware along with RAN (Radio Access Network) resources. As most MVNOs get the radio frequency spectrum at a lower rate (they access unused resources of MNOs via MVNA/MVNE), they can bring cheaper services to the customers in the area.
Relatively low capital investment
MVNO operates via different models. While some like to have their own telecom platform, most MVNOs use the reseller model. As a result, they do not have to spend excessively on acquiring resources. A low capital investment means that most small-scale entrepreneurs are able to build their own MVNO conveniently. However, they still need a state-of-the-art billing and charging platform like OCS for better monetization of their services.
Due to all the factors mentioned above, it is very much possible for MVNOs in the developing country to reshape the consumer experience in the near future. The market has great potential, and it can be exploited if you have the right resources as an MVNO.
The number of MVNOs in the developed country is way more than MVNOs in the developing countries. But the MVNO market in developing countries is showing promise of late as it has become possible to start an MVNO at a reduced cost and utilize readymade convergent billing solutions like Online Charging System. Cater to the customers from financially weaker groups, and you can succeed as an MVNO in no time.