Mobile Virtual Network Operators (MVNOs) are increasingly investing in their own infrastructure. Why? Because running on someone else’s mobile network and trying to differentiate via marketing / branding isn’t good enough anymore. So MVNO’s are putting in some of their own infrastructure to use with the host network to create functional differentiation in addition to the marketing differentiation. 019 Telzar in Israel has recently done this, and it resulted in a 50% increase in its customer base in 5 months. Mobile Virtual Network Enablers (MVNEs) have also emerged to supply the infrastructure differentiation to the MVNO’s, so the MVNO itself doesn’t have to invest in the infrastructure.
What kind of differentiation are we talking about? It depends on the target market of the MVNO. If, for instance, the MVNO is targeting small businesses, services such as simple hosted PBX and visual voice mail may help win that target market. So, adding those services to augment the MNO network would be crucial. If the MVNO is targeting consumers, device management may set them apart from the MNO, or different ways to support real-time charging for prepaid subscribers may set them apart from the MNO or even other MVNOs.
As such the MVNO would meet the needs of its target market better than the MNO or other competing MVNO’s. If you want to learn more, read the Dialogic whitepaper on Accelerating Service Opportunities for MVNOs and MVNE’s.