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Top Four Considerations for Starting an MVNO Business

Learn about the processes, partnerships and resources needed to launch an MVNO

Launching a business as a Mobile Virtual Network Operator (MVNO) requires a sizable investment in both time and money. However, the ROI can be substantial if you have a well-thought-out business plan, strong partnerships and secure financial resources. According to the Mordor Intelligence MVNO industry report, the market is projected to experience consistent growth carrying a total of USD 13.72 billion for 2024 and is expected to reach USD 16.94 billion by 2029. In this article, Plum’s wireless experts share the top four considerations to explore before launching your own MVNO business.

1) Licensing Requirements and Fees: Federal (FCC) and State Regulations

The road to becoming an MVNO is highly regulated and requires proper federal licensing, state registrations and resale certificates. To secure the required licenses, prospective MVNOs can file on their own or contact a specialized telecommunications lawyer for assistance. While the process typically takes three to five months, processing times can be delayed for things such as application errors. The legal, application, registration, and processing fees will vary, depending on what path you decide to take. In many circumstances, the cost of registration in all 50 states, with the help of a lawyer, may be in the $100,000 range or more. Marketing, distribution and operational expenses should be considered as part of the startup and ongoing budget. 

2) Key Partnerships: MNO, MVNA, and MVNE

The key partnerships for new MVNOs to establish are with the Mobile Network Operator (MNO), Mobile Virtual Network Aggregator (MVNA), Mobile Virtual Network Enabler (MVNE) and operations vendors such as warehousing or 3PL. The MNO owns and provides the communications infrastructure and network connectivity while working with the MVNA to provide MVNOs wholesale wireless programs. The MVNE partner provides both the operations support systems (OSS) and business support systems (BSS) for customer-facing activities like billing and orders. The choice of vendors with established industry relationships and integrated platforms can help guide new businesses as they become MVNOs.

3) Strategy: The Four Ps of Marketing

New MVNOs will rely upon a well-developed marketing strategy to plan their launch, growth and promotions. When mapping out this strategic plan, MVNOs should consider the Four Ps of Marketing as the pillars of their marketing plan: product, price, place, and promotion. Some questions to consider as you begin your strategic planning:

Product:

  • What do you plan to sell?
  • What is your niche segment?
  • What is your main differentiator?
  • How will the plans be structured?
  • Do the plans support the usage habits of your ideal customer?
  • Will this include hardware opportunities?

Pricing:

  • What is your pricing strategy? 
  • What are the prices of your competitors?
  • How will you handle pricing pressures?
  • What pricing models and discounts will you offer?

Place:

  • What region is your customer based in? 
  • Does your network cover the location(s) required? 
  • Will you conduct business via retail or online? Or some combination of both?
  • What is your distribution strategy and will you use direct sales and/or resellers?

Promotion:

  • Where do your prospects learn about and evaluate services?
  • What promotions, discounts and incentives appeal to your customers? 
  • How do you plan to build your referral program?
  • What are the best methods to communicate with your customers?
  • What e-commerce tactics will be utilized?  

4) Customer Care: Creating a High-Quality Experience

To remain competitive, MVNOs should consider their customers’ expectations and optimize their processes accordingly. Successful MVNOs leverage a multi-faceted customer service plan and available technology to differentiate themselves in the market. At the forefront of the customer experience is a self-service portal with tools like chatbots or FAQs to allow subscribers to manage their billing needs or research common questions 24/7. It is important to align the service delivery with the customer's preferred care methods to create higher customer satisfaction, which can boost brand loyalty and subscriber retention. Regardless of the methods chosen, it is important to monitor all systems to ensure you deliver quality service that supports subscribers and helps the business run smoothly.

Discover how Plum’s wholesale wireless experts guide new MVNOs to launch and grow their own business on the T-Mobile Network.

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