MVNO Business Plan 2023

Mobile Virtual Network Operator (MVNO) companies are launched for many different reasons, many of which have more to do with other businesses than the MVNO operation itself. It is important to consider the strategies an MVNO will employ to exploit market opportunities and include in an MVNO Business Plan.

Some questions to consider include:

Will the MVNO be a sub-brand to an existing business?

Will the MVNO align with the retail strategies of some other business?

Will the MVNO offer discounted services compared to existing Mobile Network Operators (MNO)?

Will the MVNO offer Machine-to-Machine (M2M) communications-related services on a B2B basis rather than consumer services?

Will the MVNO acquire data-only from the underlying MNO, relying upon messaging and voice-over IP and delivered in an OTT model?

Regardless of the overall MVNO strategy, executing upon a vision requires careful planning. One thing that all successful MVNOs have in common is they started with a well-developed business plan. This must include insights regarding the impact of 5G on business operations. Accordingly, customers acquiring the MVNO Business Plan will also receive research evaluating 5G technology and its impact upon networks, apps, and services (see below for more information).

The MVNO Business Plan

This is a full business plan based on the launch of an illustrative MVNO known as Contendus. The plan covers all aspects of the company launch plan including market assessment, funding requirements, financial analysis, market segmentation, and product differentiation. Also included is a go-to-market plan, distribution and replenishment plans, comparison of MVNOs, and more. The major benefit of this report is to assist in the development of an MVNO launch and to help validate existing plans.

Launching a MVNO involves a lot of careful planning and an understanding of the competitive threats and opportunities. Understanding the competitive issues and what type of MVNO to launch is key to success. A critical aspect to the success of any MVNO is its wholesale negotiations with the host mobile network operator (MNO). Accordingly, the MVNO Business Plan includes Modelling and Negotiation Strategies for Contracting with Host Mobile Network Operators. This includes rate structures of the retail minus and cost-plus models, the pros and cons of each, and how to implement them.

The MVNO Business Plan also includes evaluation of wholesale incentives, the reconciliation process, and also what macro and micro environmental aspects to consider when defining your negotiation strategy. Also included is an example Service Level Agreement (SLA), modeled from real-life operational MVNO SLAs, which can be customized and built upon to meet the needs of their service management requirements.

With 5G poised to impact virtually every part of the communication services value chain, the publisher believes it is extremely important for the MVNO ecosystem to be informed and understand the impacts on virtual network operations. Accordingly, the report 5G Technology Assessment, Market Outlook, and Forecasts 2023 to 2030 is also included with the MVNO Business Plan.

Target Audience:

MVNO start-ups
Mobile network operators
MVNE/MVNO service providers
Investors and analysts in the mobile space

Suppliers of MVNO equipment and software
Consultants and systems integration companies

The market for mission critical communications is rapidly evolving as developing technologies supply solutions necessary to meet emerging demand for improved voice, data, and machine-oriented communications. Industry verticals that manage critical infrastructure (such as utilities, ports, and transportation) also require enhanced communications to safeguard assets and optimize operations.

We see a few technologies playing a key role including 5G, Artificial Intelligence, and Internet of Things (IoT) solutions. In addition, there is a strong opportunity for network and system integration as otherwise disparate solutions converge in a manner in which operations management does not become onerous.

This report evaluates core public safety technology and solutions as well as emerging key areas for critical communications including 5G, AI, and IoT. This report also assesses emerging areas for mission critical communications including ultra-reliable low-latency communications for enterprise, industrial, and government sectors.

1. Executive Summary

2. Overview

2.1. The Business
2.2. The Strategy
2.3. The Market
2.4. The Management
2.5. The Financials
2.6. The Company Mission
2.7. MVNO Criteria
2.8. Exceptions

3. The Business

3.1. Requirements Analysis
3.2. Description of Services
3.3. Target Market
3.4. Initial Services: Primary Revenue Drivers
3.5. Potential Future Services: Additional Revenue Sources
3.6. Distribution, Purchasing, and Refills
3.7. Starter Package
3.8. Handsets and Hardware
3.9. LTE System and the SIM-card
3.10. Website and User Interface Strategies
3.11. LTE Enhancements, 5G, and Future Technologies
3.12. Back-Office and Customer Care
3.13. Mobile Network Operator Requirements
3.14. Regulatory Issues
3.15. Churn Considerations

4. The Opportunity

4.1. Opportunity
4.2. Strategy
4.3. Provisioning and Management
4.4. Infrastructure
4.5. Multi-IMSI Approach
4.6. Multi-network VPN
4.7. Security and Control
4.8. Forecast

5. The Market

5.1. US Wireless Market
5.2. Prepaid Services Market
5.3. Wholesale Communications Services
5.4. Essential Negotiation Factors
5.5. Setup Cost Analysis
5.6. Terminal Usage and Control
5.7. Network Usage and Control

6. Marketing Plan

6.1. Overview
6.2. Marketing Strategy
6.3. Initial Market Segments and Strategic Considerations
6.4. Partnering and Co-branding
6.5. Loyalty Program
6.6. Migration Strategy

7. Financial Overview

7.1. Revenue Streams and Cost Considerations
7.2. Revenue Growth
7.3. Financial Projections
7.4. Funding
7.5. Exit Strategy

8. Extensions and Upgrades

8.1. Selection Criteria
8.2. Technical Requirements
8.3. Other Factors

9. Potential Market Segments

10. The Management Team and Partners

10.1. Management
10.2. Board of Advisors
10.3. Operational Partners

11. Competition

11.1. Prepaid Players
11.2. Prepaid Market Assessment

12. MVNO Market Outlook

12.1. Overview
12.2. Global Outlook and Forecast
12.3. MVNO Drivers in Europe
12.4. MVNO Drivers in the United States
12.5. MVNO Drivers in Middle East
12.6. MVNO Drivers in Asia Pacific

13. MVNO Case Studies

14. Conclusions

15. Appendix

15.1. Cellular Operator Organization Structure
15.2. Initiating Contact with MNOs
15.3. Strategy Development

Figures

Figure 1: MVNOs and Virtual Network Enablers
Figure 2: MVNO Business Model
Figure 3: Advanced LTE-based Applications
Figure 4: Value-add Service Applications
Figure 5: MVNO Network Planning with MNO
Figure 6: MVNO Categorization by Business Model Segmentation
Figure 7: MVNO OSS/BSS Planning

Tables

Table 1: MVNO Type and Infrastructure Mapping
Table 2: MNO vs. MVNO Characteristics
Table 3: Customer Churn Analysis
Table 4: MVNO Marketing Strategy
Table 5: End-User Forecasts
Table 6: Pro Forma Income Statement
Table 7: SWOT Analysis
Table 8: USA vs. Europe Comparative Analysis
Table 9: Prepaid Penetration Assessment
Table 10: Prepaid Services Distribution and Replenishment