A Mobile Virtual Network Operator (MVNO) is a wireless communications service provider that offers mobile services to customers using network infrastructure owned by a mobile network operator (MNO). An MVNO enters an agreement with an MNO, such as Three Group Solutions, to secure bulk access to network services at wholesale rates. This means that MNVOs can create their own brand with unique service plans, and pricing tailored for specific customer segments they have planned to attract. And it works, really well.
There are currently more MVNOs than MNOs in the world with estimates suggesting over 2.000 MVNOs operate on the networks of 1,250 MNOs listed by GSMA Intelligence. Growth shows no signs of slowing and the MVNO market is expected to exceed $1billion for the first time in 2029.
If you’re considering setting up an MVNO, get in touch with the wholesale experts at Three Group Solutions for advice and read our five S’s for getting started.
Stand out
Clearly define your customer demographics and service requirements to tailor your MVNO offering accordingly. Conduct thorough market research to identify potential customer segments, understand the demand for mobile services and analyse the competition. There are a number of research companies offering detailed reports on the current MVNO landscape. Once you have identified an opportunity (segment that is growing and not over saturated), you will be able to focus on creating a distinct brand identity, targeting a specific niche market with a well-defined proposition. We recommend reading How MVNOS can stand out in a crowded market for inspiration.
When pitching your MVNO idea, keep in mind that MNOs want to see a well-defined market segmentation and a clear go-to-market (GTM) strategy for customer acquisition. The most successful MVNOs serve market segments that MNOs struggle to reach on their own.
Successful partnership
Negotiate a contract with an MNO to lease network capacity. This partnership is crucial as it determines the quality of service you can offer to your customers. Three Group Solutions is an MNO offering wholesale solutions powered by 11 mobile networks and over 600 roaming agreements. Working with us enables you to independently set retail prices and propositions for the specific customer segments you’re planning to attract.
You should engage with an MNO’s commercial teams early to assess their understanding of the target market and determine alignment with the MNO’s wholesale strategy. Ideally the MNO’s commercial model will foster a true partnership, rather than focusing on short-term gains that protect the MNO during the MVNO’s ramp-up phase. You’ll also want to ensure the platform used is fully equipped to support and scale in line with your growth ambitions.
Take a look at 18 questions to ask mobile network operators when setting up an MVNO, created by our wholesale solutions experts, to guide you through exploration. Once you have spoken with prospective MNO partners, you’ll understand whether you need to build relationships with other partners, for example technology providers for devices.
Steady service
The simplest route to acquiring and keeping customers is by offering is by offering them great service. Prioritise a user-friendly interface for customers to choose plans, manage SIM/eSIM activation (eSIM presents a major opportunity to MVNOs and their customers!), and access customer support. Ongoing customer service should include offering responsive support, resolving issues promptly, and maintaining a high level of customer satisfaction. It’s important to invest in the necessary technology and infrastructure, such as billing systems, customer relationship management (CRM) systems, and customer support platforms. These systems are vital for managing your operations efficiently.
Scale at speed
Yes there’s a lot of work to do to launch an MVNO but it doesn’t have to take a long time to get up and running. At Three Group Solutions we’re proud to be able to onboard customers in 6–8 using our fully cloud native mobile virtual network enabler (MVNE) platform. Our model delivers both the core network and BSS as services, integrating real-time charging functionalities to run diverse and competitive pricing models at scale. The system supports a wide network spectrum, from 2G to 5G, and delivers voice, data, and messaging services seamlessly to subscribers globally. You can read more about the MVNE platform and why it should excite a fledgling MVNO here.
Steer clear of hefty fines
Understand regulatory requirements in your target market, including licenses, consumer protection laws and data privacy standards so that you can comply. For specific regulations in a particular country, it is best to consult the national telecommunications regulator's website or seek legal advice to ensure compliance with local laws and regulations.
Final thoughts
Launching an MVNO requires careful planning, strategic partnerships, and a focus on customer satisfaction. Three Group Solutions has a solid track record partnering with MVNOs to offer diverse services, from consumer brands to resellers and IoT providers. Get in touch using the form below to discuss your aspirations with our team of experts.
