5 Business lines of MVNOs in the world

The highly competitive global market for mobile virtual network operators is made up of several major players, with the first official launch of an MVNO in November 1999 by Virgin UK, a company owned by Richard Branson.

Regardless of their origins, both operators (MNOs) and platforms (MVNEs) have focused their sales efforts on converting certain lines of business into Mobile Virtual Network Operators.

This is because, either due to their distribution model or the volume of users they conglomerate, these lines of business become very attractive to implement as MVNOs.

In the following Guinea Mobile article, we present the 5 most suitable lines of business to create a Virtual Mobile Operator:

Retail MVNO

These types of businesses play a crucial role in the daily lives of modern people, allowing consumers to access a wide variety of products and services around the world.

Not surprisingly, supermarket chains or department stores are at the top of the preference list for both network operators and platforms.

The retail industry also has big plans for MVNOs.

In addition, representative companies in the field are already implementing, among them we have 7-eleven, IKEA, Walmart and others created their Mobile Virtual Network Operators to generate a convenient communication with their customers and increase their loyalty.The sale of smartphones of different ranges works in an attractive way for those users in search of new devices. Examples of Mobile Virtual Retail Operators around the world include Carrefour Mobile in France and Éxito Móvil in Colombia.

Machine to machine (m2m) and internet of things (iot)

Machine to machine

M2M communications represent a key enabler of the IoT, which will ultimately affect virtually all industry sectors, including smart cities, offices and factories.

Although at first glance they appear to be the same, M2M is largely focused on machine-to-machine data transmission, while IoT involves many more elements, such as sensors, protocols, business intelligence and IoT cards.

M2M connectivity enables the monitoring, control and management of remote equipment using mobile networks in areas such as consumer electronics, healthcare, energy and utilities, transportation and logistics.The most common M2M applications include satellite tracking, point-of-sale (PoS) terminals, alarms and video surveillance.

Fintech MVNOs

Financial technology has become more prominent in recent years, in part due to the impact of the Covid-19 pandemic on digital services.

As more consumers adopt a digital approach to many lifestyle services (e.g., shopping and entertainment), and new services and applications become more widespread (e.g., metaverse and Web3), financial technology will be an important tool for individuals and businesses to transact in a digital environment.The banking industry is facing an inevitable transformation both because of the importance of reinventing itself and because of the changing habits of society in recent years.

Fintechs are another of the most sought-after targets for network operators and platforms, especially microcredit ones. A fintech has the ability to finance phones, which can provide a complete solution to the end user (device financing plus plan).

Foreign network operators

When a successful operator wants to expand its business model to another country, but cannot find available frequency licenses or a local operator for sale, it can resort to implementing its own MVNO in that country.

A well-known case is that of Tracfone in the US. Tracfone belongs to Carlos Slim’s América Móvil group and has implemented an MVNO in the US with more than 17 million users.

Operadores de red extranjeros

Niche operators

This is where we can find more implementations, from Credo Mobile in the US, as a religious niche mobile operator, to Betis Mobile for sports niches and ethnic ones such as Lyca Mobile, which serves the entire Indian community in the countries where it operates.

Niche operators serve a specific need of a community with the same interests. It is enough to find the niche, understand its needs and create a value proposition that is attractive to the group.

Conclusion

As you can see, there are multiple business opportunities for Mobile Virtual Network Operators. However, owning a niche or any of the business lines described above does not guarantee the success of any operator.

It is very important to know the business and its risks so that you are able to pivot and change your strategy when necessary. That is why do not hesitate to contact us for a personalized advice.