The Role of Mobile Virtual Networks in Bridging the Connectivity Gap
Craig Palmer, CEO of VAS-X
In the competitive landscape of telecommunications, the significance of mobile virtual networks has often been overlooked. However, these networks play a crucial role in fostering competition and providing connectivity to underserved communities.
Mobile virtual network operators (MVNOs) offer mobile services to consumers by utilizing the infrastructure of established network providers. By leveraging existing infrastructure, MVNOs can offer customized and affordable deals to consumers, making them an attractive option for brands looking to enhance customer relationships.
Typically, MVNOs partner with mobile virtual network enablers (MVNEs) who provide the technical capabilities, allowing MVNOs to focus on customer-facing aspects such as sales and customer care.
The global MVNO market has experienced significant growth, with a value exceeding US$78 billion in 2023 and projected to reach nearly US$140 billion by 2030. This growth is driven by collaborations between telcos, tech companies, and traditional industries to offer tailored services to consumers.
Companies like Capitec and Standard Bank in South Africa have successfully ventured into the MVNO space, leveraging their customer base to provide mobile services. Retail brands such as Pick n Pay, Shoprite, and Mr Price have also launched their own mobile networks to enhance customer loyalty.
Despite the potential benefits for consumers, some MVNOs have faced challenges in the South African market. Success in this space relies on innovative product offerings, effective marketing strategies, and the right support partners.
One critical aspect for MVNO success is the implementation of Operational Support System and Business Support System (OSS/BSS) software. This system helps MVNOs manage billing, provisioning, and customer services, enabling them to differentiate themselves from traditional operators.
To compete effectively, MVNOs require a cost-effective billing and CRM solution that offers scalability and flexibility. By investing in the right infrastructure and support systems, MVNOs can provide connectivity to underserved communities and ensure sustainable growth.
