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Wednesday, 13 April 2016

MVNO entering Indian Market, What is MVNO?

Digital World
Recently Telecom Commission of India has accepted the recommendations of TRAI over the issue of MVNO (Mobile Virtual Network Operators) by approving a new category of unified license for virtual network operators.
After reading this news, as telecom enthusiast many questions arise in my mind.
What is an MVNO?
How consumer would benefit from this?
In this blog, I would like to share my knowledge about MVNO’s, which I learned after exhaustive research on this topic.
MVNO stands for “mobile virtual network operator” it’s a wireless communication service provider who don’t own wireless network infrastructure or licensed spectrum. MVNO takes or purchase access to network services at wholesale rates from mobile network service provider, give service to the end customers and also set the prices independently.

MVNO generally has its use his own customer service, billing support system. The MVNO works on various business models, based on local or geographical factor. MVNO can partner with multiple telecom service provider, could sell services of more than one operator.

Why MVNO is required if telecom service provided is capable of giving of all the services?
1   
   Increase Competition: In many countries, telecom regulatory makes it mandatory for network provider, to wholesale access of network to have robust competition, which would reduce prices, brings innovation and ultimately benefit end-users.

Incremental Revenue for Operator: Many network operators, sells extra spectrum at wholesale to earn more revenue, which would otherwise an unused spectrum.

What are Benefits to end customers?
Low price: MVNO offers multiple cost effective plans, for all the services i.e. Voice, SMS etc. They offer multiple plan, for niche customer segment such as expats, youth, business customers, migrants, or others.
Content and applications: The offer exclusive content offerings, such as music, videos, games, or certain sports content bundled with mobile plans or devices.
Bundled services: Some MVNOs offer bundled services encompassing service lines such as fixed Internet or pay TV, along with mobile service.
Service differentiation: The MVNOs also run multiple loyalty programs, by tying up with other related services like financial services, retail. For example, an FMCG retailer could integrate its customer loyalty program with an MVNO,   allow customers to earn loyalty points as they talk on their mobile phones
If we look global trend, the MVNO is mainly prevalent in developed markets where telecom penetration has crossed 100% mark and according to Grand View Research, Global MVNO market would touch $73.20 Billion by 2020.
From India prospective, it would be very beneficial for government owned Telco’s BSNL, MTNL, who are running under heavy losses, they can easily improve their balance sheet through MVNO’s. Apart from this almost all the Telco’s are under tremendous pressure due to very high debt and 4G expansion, I believe MVNO would also provide, much required relief to them.

Finally, I believe MVNO would bring lots of innovative data products/services and reduce cost, but am very skeptical about MVNO's bottom line, who would enter Indian market!
                                                                                                                                    Written By 
Abhay Kumar
Ozonetel System Private Limited
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About Ozonetel: Ozonetel Systems is an India based Cloud Telephony Solution provider. Ozonetel is the only Indian company that developed the complete cloud telephony platform and provide complete cloud contact center solution, multichannel ( i.e. Voice, email, social media, SMS, live chat. Click2CAll) communication solution.

Ozonetel is currently serving 1000+ customers across 20+ verticals.

For more, please visit us over the web at www.ozonetel.com< http://ozonetel.com/

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