NEVER Commit These 3 Mistakes While Starting MVNO Telecom Business

Amongst all the telecom businesses, starting an MVNO is probably the trickiest in today’s competitive world. Not only you have to fight off the competition from other MVNO companies in terms of pricing, you also have to stand out as a distinguished supplier of services. However, not all MVNO startups recognize these requirements and end up committing big mistakes that prevent them from reaching their maximum potential. Have a look at some of the come mistakes made by MVNOs and learn how to avoid them:

Mistake1: Short-term planning

This is probably the biggest and most common mistake made by MVNOs. In their attempt to lay their claim to fame instantly, many MVNOs make the mistake of going after the latest trends. Aping what others are doing successfully may work well for you in the beginning; however, it will not create a reputation that an MVNO requires for long-term survival in this highly competitive industry.

The best approach for an MVNO is to work according to its long-term goals and do not get consumed in the instant gratification of scaling the competition fast.

Mistake2: Biting off more than you can chew

While an MVNO does not have to fight for a radio frequency spectrum (like an MNO), it is responsible for imparting other MVNO services to its subscribers. And, the scope of telecom services is vast and MVNO subscribers can be quite finicky. So, when an MVNO decides to have more control over its services and attempts to procure its own HLR, networking hardware, AUC and IN; the management of resources becomes tougher. This takes away its focus from many critical aspects of MVNO telecom operations like branding and marketing, which diminishes its value in the eyes of MVNO subscribers. Hence, it becomes essential for you to understand your own capabilities before launching an MVNO.

As a reference point, you can analyze the MVNO model provided below and choose the kind of MVNO type you want to be:

1. a)     Skinny MVNOs: If you are short on the financial front, you can choose to be a skinny MVNO with the following in-house capabilities: voice mail, content applications, SMSC, prepaid and VAS.
2. b)     Thin MVNOs: Beginning your foray into the telecom industry as a thin MVNO is a good option with in-house capabilities like EIR, HLR, AUC and Intelligent Network (IN) along with the infrastructure owned by skinny MVNO (mentioned above).
3. c)      Thick MVNOs: For affluent MVNO startup launchers with access to vast resources, it is best to start your journey with in-house infrastructure that includes VLR and MSC apart from the resources owned by a thin MVNO (mentioned above).

For the resources that you don’t have, it is best to partner with an MVNE like Vcare that has access to MVNO billing solutions as well as fully-licensed platforms and contracts with multiple vendors.

Mistake3: Stop evolving

Whenever an MVNO thinks it has done enough to sustain its business and stops evolving, it sounds the death knell for its business. An MVNO, even when it is flourishing, needs to recognize that it is a small player in the market and at any time the big fish can consume it.

It should always keep on experimenting with its tariff plans, launch new attractive bundles and keep the customer interested at all times. The best way to accomplish this is by partnering with an MVNE that provides flexible and scalable solutions, which are tailor made to meet the requirements of your business.