Successful MVNOs all have a clear market they target and they communicate a clear message to reach that market.
Leverage an existing user base
Where the MVNO is built on a pre-existing user or subscriber base the selection and marketing can be quite straightforward. Supermarkets, airlines, electricity and gas utilities, affiliate groups and so on all present ideal opportunities to introduce a telecommunications brand extension. Furthermore, leveraging existing distribution, marketing, billing and back-office makes very good sense and can significantly reduce operating expenditure and risk.
The selection of network partner, MVNO strategy (from branded reseller to full MVNO) and the negotiation of wholesale deals are crucial to the long term competitive success of the MVNO.
It is not essential to have an existing user base to deliver a successful MVNO. Among the most successful MVNOs in Europe and the US have been startups driven by a clear target market or proposition: MVNOs focussing on ethnic or youth markets, for instance, or using MLM or heavy discount strategies have all demonstrated spectacular growth.
The startup MVNO needs to carefully weigh up its target niche and market clearly and efficiently. MVNO margins can be slim and expensive consumer marketing is rarely the right way to succeed.
Hebitel’s personnel have considerable experience in launching and managing successful MVNO operations and we would be thrilled to talk to you about our experience.