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A Complete Guide to Starting Your Own MVNO Business

  • February 23, 2024

The global telecom industry is witnessing high time and increasing popularity. Certainly, this is contributing to increasing innovations in this industry as there are high chances of adaptability and high revenue, too. Besides communication, the VoIP industry is experiencing a surge due to several reasons. For example, easy and cheap access to technology; more techsavvy users; a multitude of competitive options, and the list goes on. In short, the VoIP industry is creating business opportunities and revenue generating opportunities in different segments. As a result, several businesses are now investing in the VoIP industry to launch their own profit making business. One of the prevailing trends in this sector is the emergence of MVNOs (Mobile Virtual Network Operators) and MVNO billing solutions.

MVNOs are network operators that deliver communication services to clients without a physical radio network or infrastructure. Certainly, it is an intriguing concept, which is made possible by MVNO solutions provided by leading VoIP service or smart telephony platform providers. Interestingly, the contribution of tailored VoIP Softswitch solutions and an MVNO billing system is considered significant in running an MVNO business. However, that is not the only thing you need. Indeed, commencing and leading an MVNO business requires a perfect and well-sought-after blend of strategy, technology, infrastructure, the right partners, and various other elements.

In this blog post, we will delve deeper to understand more about mobile virtual network operators and their businesses. We will also help you discover the right way to launch your own MVNO business and succeed in this competitive industry.

So, without any further ado, let’s jump into this guiding light that will give you the ifs and buts of launching and owning your own MVNO business.

1. What is an MVNO?

A Mobile Virtual Network Operator is the full form of MVNO. Somewhere, the full form reflects the business model of this industry, too. Simply put, a network operator that provides communication services is an MVNO. However, it will work virtually. Certainly, the operator will not have any real or physical infrastructure to provide communication or telecom services. Indeed, it is a distinguishing factor of an MVNO as it provides communication services without owning any sort of infrastructure. Generally, MVNOs lease infrastructure from one or multiple cellular network carriers.

Undoubtedly, this working model or business model puts MVNOs in a more powerful position. Certainly, they can present more competitive mobile connectivity plans and lucrative offers to win more sales. Unlike traditional Mobile Network Operators (MNOs) that operate their infrastructure, MVNOs opt to rent it from MNOs. MVNOs use third party infrastructure, including the MVNO platform and MVNO billing software to deliver predefined communication and telephony services to their target markets.

Interestingly, an MVNO can lease infrastructure and services from multiple MNOs. For example, MVNOs secure call minutes or wireless capacity at wholesale rates from different MNOs and subsequently resell these services to customers at more affordable retail prices. While some MVNOs rely on a single network, others leverage a combination or utilize various networks for signal transmission. Additionally, MVNOs always use custom branded solutions and services. Therefore, they can establish their own business and brand positioning even if they don’t own any real infrastructure or tools.

2. Importance of MVNO Business Model

MVNO Billing System

Right now, consumers are increasingly knowledgeable about their rights and options. Therefore, they seek more personalized services. Moreover, they demand services at the most cost effective rates. Certainly, MVNOs play a crucial role in meeting this demand by enabling an unparalleled level of package personalization through the right strategy and solutions. For example, MVNOs bundle the right solutions like retail and wholesale Softswitch, SIP trunking solutions, MVNO billing software, and more.

The implementation of the right technology and strategic solutions has facilitated this customer centric telephony service model. Furthermore, it encourages global legal authorities and governments to encourage business owners to venture into this market. South Africa, in particular, is actively promoting mobile virtual network operator businesses. They emphasize the adoption of fiber-based infrastructure and other transformative initiatives.

We encourage you to read our blog post covering the major growth contributors of MVNO business in South Africa. This article gives a good idea and the required insight about how MVNO business unfolds in South Africa and affects several other industries and geographies with its powerful offerings.

3. How to Start an MVNO Business?

MVNO Billing Solutions

You must be intrigued to start your own MVNO business due to the growing popularity of this telecom segment. However, it is not as easy as it starts if you are thinking all you need to do is be a partner of mobile network operators. Certainly, MVNO business is less expensive and less complicated than mobile virtual network operators because you don’t need infrastructure and several other setups. Still, there are multiple things that you must take care of so that you can ensure you launch and run a successful business.

We have been building different MVNO solutions to empower mobile virtual network operators to work efficiently and successfully. Based on our experience, we can help you make each move right to launch and run a thriving business. Here is the complete guide that you must know and follow religiously.

3.1 Run Thorough Market Research

Even if it sounds easier to launch a business and perceive its success in the mobile virtual network operation segment, it is necessary to run thorough market research. Generally, the first step in doing anything new is investing resources for deep research. This research will help you identify the right driving factors that will define your journey and its success.

To make sure your research comes with helpful results, here are the questions that your research report must answer:

  • 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?

Undoubtedly, it is alluring to choose the target location that has a maximum audience for MVNO offerings. However, you cannot deny the fact that those geographies will have a lot of competition. Thus, it will be difficult to capture a huge market. In short, there are several aspects that you need to consider before commencing the business. Therefore, thorough research is the right investment to get started with.

3.2 Explore Legislation Related to MVNO Business

Possibly, you have shortlisted some targets to capture in the first step rather than selecting any one area to seize first. Of course, you may want to start a business with a single territory with a single target audience. Still, it is necessary to have some options on hand to identify the best one and put them on the priority list. Often, legalities are quite complicated in different countries.

For example, in India, you cannot run a pure VoIP based communication service business. Still, there are some provisions that make it possible to use VoIP to offer communication services. Simply put, different countries have different regulations for communication and telephony or internet service provider business. MVNO falls under the telecom category. Thus, it is necessary to check intricacies and provisions related to telecom companies and businesses in your preferred locations. This will help you choose the right targets and win the battle seamlessly.

3.3 Define the Business Strategy and Document the Same

Once your targets are clear and once you have the blueprint to start your business, the next plan is to create a business plan. Certainly, you can use your own experience or knowledge. Alternatively, you can hire a local consultant who is working in your target geography. This will not just help in deciding and validating business strategy, but also in making the moves approved by someone successfully doing business in the target area.

Drive success for your MVNO business with our efficient billing solution.

A business plan must include all the ifs and buts. Certainly, it will define everything that you will do and follow to launch and run a business successfully. Moreover, the plan will also mention how to deal with local or unforeseen challenges in real time. Additionally, you can discover how to expand your business. In short, your business plan must have the following details:

  • Setup plan with a complete detail of infrastructure like hardware, software, physical space or virtual place, etc.
  • Marketing and market seize plan
  • Sales strategy
  • Customer care plan
  • Budgeting and financial forecasting
  • Risk analysis and risk mitigation plan
  • And more

You must create a detailed plan to launch and run your MVNO business. Moreover, your plan needs to be documented, so you can refer to it. Furthermore, you can present it to investors or anyone you need to. Keep all the details in the plan. For example, whether you want to lease or buy your own one of the best MVNO billing solutions. Moreover, you have an interest in using the on-premises solution or a cloud native system. Likewise, all details need to be discussed and added to your plan.

3.4 Identify the Partners

Once you have defined the plan, the next step is taking the required actions. Certainly, you can start with finding the right partners. This includes partners for leasing MNO offerings, technology partners, local partners, and more. Create a complete network of partners to get into action to start your MVNO business.

3.5 Work on the Funding Part

The next very important step is to get sufficient funds. Definitely, to start a business and to survive in a competitive industry, you need to have enough funds. You will need some funds to get started to register a company, to get the license and initial infrastructure, plus, staff, and other expenditures. You can look for angel investors, government startup programs, and similar options in South Africa or your country.

3.6 Get the Required Infrastructure

Now is the time to get the required infrastructure. Of course, MVNO might not need to get the SIP trunks and other infrastructural components that are required by an MNO. However, you will still need a wholesale Softswitch, VoIP billing solution, SIM cards, DID numbers, and other equipment and any tools to launch and run a successful mobile virtual network operator business.

3.7 Make a Launch and Marketing Plan

Once the groundwork is completed, the most vital step is to hit the market and win the ground. To do that, you need to get prepared. Firstly, create a launch plan. This may define which city to start with or which audience to target first. Secondly, design a marketing plan for the launch and then in the initial time. For example, discounts that you can give or referral bonuses that you will offer, etc. must be part of your marketing plan.

3.8 Launch your Venture

The big day is here. Once you are ready with everything, you don’t need to wait any further. Simply decide the best day and launch your venture. Certainly, keep all your teams on alert mode as you can expect the unexpected on the launch day. Be ready for the best and put your best foot forward.

Concluding Note

Certainly, launching an MVNO business is simple and cheaper compared to other VoIP based businesses. The clear reason behind it is you are working remotely. You don’t need to buy any infrastructure such as SIP trunking solutions. Simply, you are leasing all offerings from different mobile network operators and assembling them into the right bundles to create unique and alluring offerings. However, to launch any business, you need the right partner, tools, team members, and of course, a well defined strategy. We have tried to cover all the necessary steps that can help you build a successful VoIP business in the MVNO industry.

We are renowned for our technology solutions and consultation services. We can help you with our software solutions like MVNO billing solutions, a smart telephony platform, VoIP Softswitch solutions, and more. To learn more about our offerings, contact us now!