If you’re a founder looking to launch your own wireless service, it’s likely that you’ve come across the term Mobile Virtual Network Enabler (MVNE). You may be wondering which MVNE solutions are right for your business and how to differentiate between providers - particularly as they all appear to make the same claims.
In this article, we’ll explore the functions and limitations of traditional MVNEs, discuss how advances in automation, AI and multi-carrier APIs can help you reduce capital expenditure and operating costs, and give you the tools to discern which telecom providers will put you on track for long-term success.
What is an MVNE?
An MVNE is an organization that provides Mobile Virtual Network Operators (MVNOs) with the network infrastructure and operational systems necessary to run a wireless service. That can include network access, billing software, SIM provisioning and subscription management. MVNEs do not sell their services to end-users. Instead, they enable MVNOs, such as Mint Mobile or Cricket Wireless, to offer mobile services to their customers under their own branding. Here are some of the services that fall under the MVNE umbrella:
Network access: MVNEs have pre-negotiated agreements with Mobile Network Operators (MNOs) like AT&T, Verizon, or T-Mobile, giving MVNOs access to connectivity at wholesale rates from a reliable mobile network. This means they can start offering services right away without the immense cost and complexity of negotiating a relationship and integrating directly with a network.
Billing and CRM solutions: Managing billing and customer relationships is resource-intensive without the right software in place. MVNE billing software and CRM tools are designed to enable a smooth customer experience.
Provisioning and SIM management: The logistics of provisioning SIM cards and eSIMs are complex. MVNEs manage this process for MVNOs, ensuring a quick and painless activation experience for customers.
Regulatory compliance: The telecom industry is heavily regulated. MVNEs ensure that all legal requirements and customer protections are met, minimizing the risk of non-compliance.
The difference between an MVNE and an MVNA
Like MVNEs, Mobile Virtual Network Aggregators (MVNAs) buy network access at wholesale rates from one or more carriers and resell this access to multiple MVNOs. By securing bulk deals with the carriers, MVNAs can provide smaller MVNOs with network access at better rates than they would be able to negotiate by going direct.
The key difference between an MVNA and an MVNE is that MVNAs typically do not provide a suite of backend services like billing or CRM systems. Instead, MVNAs focus solely on securing cost-effective network access for MVNOs. While MVNAs may offer some additional services, their primary role is to act as a reseller of network services. For this reason, MVNOs working with an MVNA will need to source additional services from other providers or build them in-house.
For more information read our blog: MNO, MVNA, MVNE, MVNO: What’s the difference?
The benefits of partnering with an MVNE
Accelerated time to market: One of the biggest advantages of working with an MVNE is the ability to launch your MVNO quickly. With the infrastructure and systems already in place, you can go from concept to launch in a fraction of the time it would take to build everything in-house.
Lower upfront costs: Starting an MVNO from scratch would require significant investment in network infrastructure, billing systems, and regulatory compliance. An MVNE allows you to avoid these capital expenditures, making it easier to allocate your resources to marketing and customer acquisition.
Scalability: As your MVNO grows, an MVNE can scale its services to meet your expanding needs. Whether that’s adding more network capacity or integrating new technologies. Depending on the partner you choose, an MVNE can provide the flexibility to grow without massive reinvestment.
Focus on core competencies: By outsourcing the technical and regulatory complexities to an MVNE, you can concentrate on what you do best - creating a compelling brand, developing innovative offerings, and delivering exceptional customer experiences.
The drawbacks of traditional MVNEs
The MVNE model has been in use since the 1990s and not every provider has kept pace with evolving technical advances and customer expectations. Depending on the partner you choose, you may experience significant challenges.
Complex integration: Some MVNEs rely on legacy infrastructure, which complicates the integration process. This not only increases the time it takes to launch your MVNO but can cause long-term maintenance costs and operational complexities.
Outdated user experience: When it comes to winning customers from incumbents, user experience (UX) matters. AI and the rising popularity of eSIMs has accelerated innovation in this space. Some of the most exciting solutions on the market include one tap eSIM activation and AI-powered customer service tools. But unless you’re working with an MVNE that has a world class developer team, you may find it difficult to keep pace with customer expectations.
Operational fragmentation: Many MVNE providers claim to offer an end-to-end service, but more often than not their offerings are not fully comprehensive. For this reason, you may have to work with multiple providers to manage different aspects of your operations. This lack of cohesion can lead to a cycle of dependencies where fixing one problem causes another. For instance, adjusting your billing system with one provider might create compatibility issues with your CRM system from another provider, making agility and innovation difficult.
Restricted customization and innovation: Traditional MVNEs often offer a one-size-fits-all solution that is not easily customizable. This lack of flexibility can stifle innovation, and you may find it difficult to adapt quickly to market changes or introduce new features that differentiate your business from competitors.
Challenges in scaling operations: As your MVNO scales, the complexity of managing multiple systems through an MVNE can become a significant barrier to growth. The more intricate the setup, the harder it is to expand operations smoothly, leading to potential bottlenecks and reduced ability to capitalize on growth opportunities.
What to look for in a telecom partner
The telecom landscape is evolving fast. Recent advances in automation, AI and APIs have enabled new players, including major neobanks like Nubank and smartwatch companies like Xplora, to venture into the wireless game. By leveraging the best telecom partners, these players deliver exceptional user experiences at competitive prices, with very low capital expenditure or cost to serve.
To replicate their success, it’s critical that you choose a partner that is at the forefront of telecom innovation. Here are the products and services you should be aware of.
Modern APIs: APIs enable swift integration with telecom systems, cutting your time to market. Every MVNE claims to have a modern API, but it pays to be a little cynical and ask the right questions. The best APIs are built to the same standard as modern SaaS APIs, are meticulously documented and boast 99.99% uptime. The quality of an API depends largely on the team that built it, so you should look for a partner that hires top talent.
Automation and AI: Mundane tasks like billing, number porting, tax calculation and customer service can quickly overwhelm your business. To avoid sky-high operational costs, look for a partner that offers advanced automation tools and AI to simplify administrative tasks and ensure a premium user experience. Examples include an automated tax engine, AI driven customer service tools, and a self-serve interface where customers can manage their own subscriptions without needing to reach out to your team.
World class UX: From checkout flow to SIM activation, your telecom partner should offer seamless, digital-first user experiences which maximize conversions and minimize your cost to serve. For an example of great UX, take a look at Gigs’ one tap eSIM activation feature and ready-made white-label landing page.
Scalability: The broader the scope of your telecom partner, the faster you will be able to grow your business and react to new opportunities. For example, a partner with a multi-network API can help you move into new markets fast, while a partner that provides travel eSIMs can help you tap into the profitable roaming market. Look for a partner with a constantly evolving product suite that will keep you ahead of the curve without the need for constant reinvestment.
Advanced analytics: Without analyzing conversion rates, churn, and usage, you’re flying blind. By leveraging powerful analytics software, you can constantly optimize your positioning, pricing and messaging to maximize conversions.
Complete solution, one integration: To avoid operational fragmentation and keep CAPEX and OPEX in check, you need an operating system that simplifies telecom in the same way Stripe simplifies payments. Fortunately, that solution now exists. Today, you can abstract all the legal, technical and operational complexity of running a global wireless service and access everything - from wholesale connectivity to billing and customer service - via a single API integration.
Your unfair advantage: Integrating with Gigs
Gigs combines the functions of an MVNE, MVNA, and multiple telecom vendors in a single platform. With unparalleled automation, world-class UX, and superior conversion rates, Gigs not only minimizes launch costs but also drastically reduces your operating expenses. With our multi-network API, you can launch local wireless services in multiple markets as well as travel eSIMs from Day One, all with one integration.
To find out why leading tech companies like Nubank choose Gigs to launch connectivity services to their millions of users, get in touch.