Join the ASTPP One stop solution Webinar!Join the Webinar

Post Details

A Complete Guide on Starting Your Own MVNO Business

  • December 6, 2022

Telecom industry is booming across the globe and everyday something revolutionary comes to the market. The current trend in the telecom industry is MVNO (Mobile Virtual Network Operator). As the name suggests, these are the mobile network operators that provide telecommunication services to its clients without any physical radio network or telecommunication infrastructure. Sounds fascinating? Indeed it is. This is possible because of MVNO platforms offered by the top VoIP service providers or smart telephony platform providers that make this possible. Some people consider that a VoIP Softswitch solution is a major contributor to making this whole mobile network model real and operational. However, the fact is, commencing and running an MVNO business needs software, hardware, strategy, and multiple other elements put together and running in a harmony. 

Today’s customers are more informed about their choices. They need personalized offerings and that also at cheaper rates. This is made possible with MVNOs. An unprecedented level of package personalization is possible with the right strategy and solution, which can be a retail and wholesale Softswitch or a SIP trunking solution. As the technology and other strategic bundles of solutions have made this model of customer centric and customer delighting telephony services possible, more and more governments have started encouraging the business owners to jump into this market. South Africa is one of the regions that are promoting mobile virtual network operator businesses with its adoption of fiber based infrastructure and other transformations. 

Read our complete blog on Contributors to the growth of MVNO market in South Africa 

The business model of mobile virtual network operators is very fascinating for end users and that is why it is bolstering in many countries. This is the right time to jump into this market and embark on your own venture as a mobile virtual network operator in South Africa or any other country you are operating in. As this is a completely virtual network, you can expand the wings internationally in phases once you start getting success in one region. 

In this article, we will cover the following points on

A complete guide on starting your own MVNO business

  • Run a thorough market research 
  • Explore legislation related to MVNO business 
  • Define the business strategy and document the same 
  • Identify the partners 
  • Work on funding part 
  • Get the core equipment and solutions 
  • Make a launch and marketing plan 
  • Launch your venture 
  • Concluding notes 

This journey may seem a bit complicated initially, but with effort in the right direction, you can make it true for yourself and business and enjoy the perks of having a successful business in the trending industry.

A complete guide on how to start MVNO

1. Run a thorough market research

Jumping into unknown water is not the right move as it can drown you. This is true in the business as well. You must test the water. Even if countries like South Africa have the required infrastructure or are adopting the same to support MVNO businesses, it is necessary to first run a market research. You will need to define various facts such as: 

  • What will be your target region? 
  • What will be your target audience?
  • What type of MVNO platforms will you use? 
  • What type of collaborators are you looking for? 
  • Will you have an in-house team or will you outsource? 
  • How will you handle technical challenges? 
  • What will be your revenue generation model? 
  • What will be your elevator pitch? 
  • What is your scalability and growth plan? 

These are some vital questions. As you start digging deeper into the market, more questions may arise. You must invest in collecting all fine details to make a better and winning plan to start your MVNO business.

2. Explore legislation related to MVNO business

This is another vital aspect that needs to be checked utterly. Telecommunication is one of the vital business segments and different countries have different laws abided by the same. Of course, a majority of countries have flexible legislation such as South Africa. Still, it is crucial to check all the legislation related to telephony business, new ventures, taxation slabs, grants and benefits, and other aspects.

3. Define the business strategy and document the same

Once you complete the research, this is the time for you to define a detailed business strategy and make a documented plan. This will also help in getting the funds from angel investors or receiving grants from the government. Your business strategy must have all the details, including, whether you will use a VoIP Softswitch solution or a SIP trunking solution to run the business.

4. Identify the partners

You will need multiple partners to embark on your journey such as smart telephony platform provider, mobile network operator to supply the radio network to let you run your business. You may also look for a recruitment partner or any other collaboration partner to help you prevent getting burned out and keep things moving.

5. Work on funding part

The next vital step is to get funds. You will need funds on hand to run your business. Of course, there are some cheaper options available. For example, you can get an open source SIP trunking solution or open source VoIP Softswitch solution that would come for free. You can partner with MNO based on a revenue sharing model. Still, you will need some funds to get started to register a company, to get the license and initial infrastructure, plus, staff, and other expenditure. You can look for angel investors, government startup programs, and similar options in South Africa or your country.

6. Get the core equipment and solutions

Once you have funds, time to get your hands dirty. Get the best retail and wholesale Softswitch, VoIP billing solution, and any other tools you need to launch and run your business. Make an agreement with the mobile network operator to run your business. If you are going to have your own radio network, you will need to get the infrastructure for the same. You will need to get SIM cards, DID numbers, and other equipment, which should be acquired beforehand.

7. Make a launch and marketing plan

Once you are ready with your infrastructure, you need to make a proper launch plan to leverage the advantages. Instead of just hitting the market, create some curiosity, grab some eyeballs, and then launch your business as an MVNO. This will help you leverage the real advantage of launching a business. You will also need a marketing plan to reach your clients, which are unaware of this service, looking for this service, or already using service from your clients. Your marketing efforts will define your scalability and growth. You can take the help from a marketing agency offering digital marketing services to create a winning launch and marketing plan.

8. Launch your venture

Once you are ready with your plan, this is the time to hit the ground with all force. You can start with a small region or you can go all in depending on the system and partner you have in place. The right software, regardless of the fact if it is a proprietary or open source SIP trunking solution, can support your business plan from the day one of the launch to scaling up to meet more business goals.

Concluding notes

Launching any business needs a strategy in place and right partners standing right with you from the first day of your journey or even before that. Mobile virtual network is one of the most popular and rapidly growing businesses in the world even in countries like South Africa. The consumers and demand for personalized communication at affordable or cheaper rates is increasing like anything. The opportunities are knocking the doors of aspiring entrepreneurs. The technology tools such as open source VoIP Softswitch solution, VoIP billing solution, etc. are available at affordable rates. The technology providers even offer flexible pricing and acquisition models to support startup companies. 

In a nutshell, there are several contributors that can help an aspiring mobile virtual network operator to commence his or her journey in this profit making segment of the telecommunication industry. The tips mentioned in this article will definitely help you getting started with the strong positioning in this market. Of course, it is an emerging market and that is why it is wide and open for opportunists, but it is necessary to be cautious about the business plan. To beat the existing and budding competition, a strong plan, the right infrastructure, and strong partners is necessary. 

ASTPP can help you in this journey by becoming your guiding light and technology partner. Our company have been offering the best VoIP Softswitch solution and MVNO platforms along with other IP telephony solutions. ASTPP have worked in more than 50 countries and empowered thousands of businesses. We can help you grasp the MVNO business in South Africa and succeed as one. We can also provide you with technical solutions and support to keep moving forward. To know more and to initiate the discussion, contact us.