10 Reasons I Don’t Like MVNOs
The phenomena of MVNO (Mobile Virtual Network Operators) is getting to a new high, especially in LATAM were markets are reaching maturity and penetrations levels grow beyond 100%, countries like Brazil and Colombia are of major interest for this new actors in the region. Globally it all started back in 2006, back then many virtual operators failed to keep their subscriber base, but now, it seems like they are reemerging using lessons of the past. The biggest concentration of MVNO can be found in Europe, followed by Asia, North America and South America.
But Why…. Why?
Before I continue I must clarify, I don’t particularly have bad animosity towards the trend, but I like to give a different point of view from that usually developed by analysts and media, having said that, is clear that success in the industry for MVNO is based on the idea of competing on a service level and not on a network level, and that MVNOs offer the MNO (Mobile Network Operators) the opportunity to add customers with value at no additional costs, or in other words, they help the MNO to attract new users in an already saturated market, but what about technological innovation and real service improvement for users, are the MVNO really adding value in these areas?
The Trend is here to Stay
So a MVNO resells air time of a service from a MNO, and does it by developing new commercial strategies and innovative ways to attract users, this is something that despite of what anybody can say has been delivering successful results so far, so why fix something that is working, right? The industry even developed a whole ecosystem to support the model where MVNA (Mobile Virtual Network Aggregators) and MVNE (Mobile Virtual Network Enablers) become important actors, the first one group various MVNO to present a better deal for MNO the second one provide services to MVNO to ease the entrance and maintenance of the service, such ecosystem is gearing up and it seems to provide means for a long permanence on the industry.
10 Reasons I Don’t like MVNOs
Image courtesy of Paola Buelvas (email@example.com)
My opinion is open to be discussed, supported or rejected; please let me know your comments.
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