MVNO Phone Business
The rapid growth of Mobile Virtual Network Operator (MVNO) in the cell phone business is impressive and that is why traditional mobile network operators choose to embrace it instead of treating it as a competitor. Since 2012, big network operators allow it to ride on top of them knowing that hosting such small market player can extend their shelf
space and increase their revenue. Because this small player doesn’t own a licensed frequency spectrum, it tends to have a carrier or host which is already an established mobile network operator. It acts as a reseller of its host network’s capacity. As a mobile reseller, it designs package that is compelling to the end user and provides easy access to top-up facilities.
Cell Phone Target Markets
Mobile network operators are actually benefited as hosts of MVNO. The latter offers a personalized mobile deal that is more attractive to its target market. This includes voice and data packages and innovative value added services that cannot be found in other mobile operators. Since the consumers are looking for a mobile offering that is something different, which the mobile virtual network operator is capable of giving, they tend to avail of its package instead of subscribing to other major operators. Therefore, business-wise, being linked to it, the host operators are able to increase the chances of consumers to choose their network.
This so-called partnership between the two telecommunication market players is mutual. Basically, the host or carrier works directly with MVNO, giving it access to its data network to produce unique plans and in return, the host gets a percentage of the plan’s revenue. As for the mobile network operator, being a carrier is its way of implementing a more specific marketing mix. The fact that this virtual network operator has a strong brand name and a niche focus makes it easier for the mobile network operator to target specific market segments which it usually fails to achieve on its own.
Moreover, having the help of MVNO allows the host mobile operator to eliminate marketing and customer acquisition costs since the former independently covers these areas. Aside from that, utilizing its brand loyalty is the key to increase customer retention which primarily makes a good image to attract more subscribers and thus increase revenue opportunity to both parties. To think about it, the participation of this small market player in the mobile market is more of an advantage than a threat to traditional mobile operators. Its presence does not really take away the market share from mobile operators. It instead opens new business opportunities. This is pretty much the reason why big mobile operators opt to adopt it rather than compete with it and get rid of it, which is honestly difficult to do.
The phone business has become even more demanding than it was before and MVNO is just one of those which keep the mobile market alive to date. However, the growing needs of consumers and the future changes in the market may warrant further development and remodeling of mobile virtual network operators.