Nowadays, more and more companies from different industries are daring to sell mobile services under the virtual mobile operator business modality with their own brand, in order to increase customer loyalty and generate revenue channels.
In the following Guinea Mobile article, we explore the case of an electric energy services company that added mobile virtual telephony to its portfolio of services.
What is an MVNO?
MVNO stands for Mobile Virtual Network Operator. Sometimes called virtual networks, MVNOs are companies that offer mobile services but do not own or operate their own network. Instead, they use a network managed by a mobile network operator (MNO).
Fjordkraft launches MVNO
Fjordkraft is a company that provides electricity services in Norway. The company is owned by network companies BKK and Skagerak, as well as power producer Statkraft, and has approximately 1 million residential electricity customers.
In April 2017 it launched Fjordkraft Mobil, its cell phone service brand, using telenor’s network. The aim was to sell mobile packages at discounted prices to its customer base.
Learn more about MVNOs here: What is an MVNO? (Mobile Virtual Network Operator)
Fjordkraft offers customized subscriptions for both new customers and long-time users of its electricity services, as well as for those who only require mobile telephony, and those who purchase the full subscription package. Fjordkraft Mobile’s preferential pricing is available to more than 1 million Norwegian residents.
Each subscription includes unlimited voice calls, text messages and MMS. The amount of Internet traffic in each subscription can also be used for roaming in the EU and EAA. The unused mobile Internet allowance can be renewed and there is no contractual commitment.
Overall, Fjordkraft mobil’s offerings are well designed, as they include unlimited voice and text, as well as a tiered list of data offerings to meet the diverse needs of Norwegian consumers.
For starters, the price of the packages is relatively low, and significant overall discounts make them even more attractive to Fjordkraft’s electricity customers. From the company’s point of view, it also offers the possibility of attracting new electricity customers who are eager to take advantage of discounted MVNO connectivity.
Fjordkraft mobil: A success story
In its first year of launching its mobile offering, Fjordkraft reported achieving 50,000 mobile customers.
The company’s CEO, Rolf Barmen, said that the initial goal of its MVNO had been to act as an independent competitor to Telia and Telenor, offering wireless mobile telephony at affordable and very low prices for Fjordkraft’s electricity customers.
The power utility built the cell phone service on its recognized brand and its large and competent customer service center.
MVNO: a source of revenue for companies with an established customer base
For companies whose core business is outside the mobile telecommunications sphere, offering mobile services can be a very sound strategy for generating revenue.
In addition to standalone MVNOs and MVNOs offered by MNOs, we have presented cases of MVNOs initiated by retailers and other entities. In such cases, it is important to have a pre-existing customer base that is receptive to a mobile service offering (at the right price, of course), in this case from Norway we see a synergy that makes sense.
Fjordkraft has a large number of home electricity customers, and considering that, for better or worse, many customers conceive of mobile services as an essential utility similar to electricity, we can certainly imagine that many of Fjordkraft’s customers will be willing to subscribe to mobile packages from a company they already consume their electricity services from and trust.
So far we have concluded with the case of Fjordkraft, a company that launched its MVNO to add to its portfolio of electricity services.
Guinea Mobile is a Peruvian telecommunications company, we have all the technology to provide customized IoT solutions for companies wishing to innovate their services or those who wish to launch their mobile virtual network operator with their own brand, contact us if you are interested to provide personalized advice.