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MVNO business models and advantages

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Author : IPLOOK
Update time : 2020-12-17 19:33:00
1. MVNO business models

The different business models in the MVNO market are based on how the value chain is restructured. Therefore, four main business models that emerge are : Branded Reseller, Light-MVNO, Full-MVNO and Network enablers.

2. Network topology

2.1 Branded reseller
Branded reseller is the lightest MVNO business model, where the venture just provides its brand and, sometimes, its distribution channels. While the mobile network operator (MNO) provides the rest of the business, from access network to the definition of the mobile service offer. This is the model that requires the lowest investment for a new venture, therefore the fastest to implement. However, most of the business levers remain with the network provider (MNO or MVNE). Therefore, the new venture has a very limited control of the business levers and value proposition of the service.

2.2 Light-MVNO
Light-MVNO is an intermediate model between a branded reseller and a full-MVNO. This model allows new ventures to take control of the marketing and sales areas and, in some cases, increase the level of control over the core network, back-office processes and valued-added services definition and operations.

2.3 Full-MVNO
Full-MVNO is the most complete model for a new venture, where the mobile network operator just provides the access network infrastructure and part of the core network, while the new venture provides the rest of the elements of the value chain. This MVNO business model is typically adopted by telecom players that could gain synergies from their current business operation.

2.4 Network enablers
Network enablers, typically known as Mobile Virtual Network Enablers (MVNE), this is a third party provider focused on the provision of infrastructure that facilitate the launch of MVNO operations. An MVNE can be positioned between a host MNO and an MVNO venture to provide services ranging from value added services and back office processes to offer definition. MVNEs reduce the entry barriers of MVNO ventures, given that an MVNE aggregates the demand of small players to negotiate better terms and conditions with host MNO. They pass on some of these benefits to their MVNO partners. Moreover, the all-in-a-box approach to launch an MVNO through a MVNE has accelerated, even more, the explosion of the MVNO market.

3. Advantages of Light MVNO/ Full MVNO/ MVNE

The Independence of MVNO

3.1 Directly connected with MNOs or MVNOs
The MVNO core network platform will connect to MNO/MVNO directly to cut down roaming expense.

3.2 Interconnect to multiple MNOs/MVNOs
With core network platform, MVNO can interconnect with multiple MNOs and swap dynamicly for a more competitive price; In the mean time, MVNO is able to interconnect with other MVNO's core network for wholesale.

3.3 Enhance viscosity of subscribers
With core network platform, MVNO can do provisioning themselves using their own OTA platform;
In this way, MVNO has strong connection with their subscribers since they can do provision remotely to provide best services. As a result, subs will depend more on MVNO rather than MNO.

The diversity of Tarrif

3.4 Policy control  based on time slots
MVNO is able to define the peak traffic of their subs. It could be the lowest at middle night, with which the data usage will be cut down obviously.

The technical advancement
Items Branded reseller Light MVNO Full MVNO MVNE
Charging based on content Handled by MNO Handled by MNO Self-managed Self-managed
Distributing APN Handled by MNO Self-managed Self-managed Self-managed
Distributing Static IP Handled by MNO Self-managed Self-managed Self-managed
Local breakout of the traffic Handled by MNO Handled by MNO Self-managed Self-managed

3.5 Charging based on content
The IPLOOK core supports to identify the traffic, in which MVNOs is able to optimize the service according to subs' personal needs. And the opertors could provide data-free service for specifc apps.

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