From fintechs to travel agencies, phone brands to smartwatches—more and more companies are entering the telecom game. Described by some as "white label MVNOs”, these businesses offer mobile services straight out of the box, without having to build their own telecom infrastructure from the ground up.
What’s fueling the white label MVNO boom? What are the revenue opportunities for these newly minted mobile providers? And what’s the best way to launch your own MVNO?
Here’s what you need to know.
What is a white label MVNO?
First things first—let’s untangle the jargon. A Mobile Virtual Network Operator (MVNO) is a company that provides phone and data services to customers without owning the physical network infrastructure.
Instead of investing in cell towers and network hardware, MVNOs purchase wholesale access to a Mobile Network Operator’s (MNO) infrastructure, then resell mobile services to customers.
The "white label" aspect means the mobile service is offered under the MVNO’s brand name and they have full control of things like pricing, plans and user experience (UX).
This business model allows all kinds of companies to launch a mobile service quickly and cost-effectively while retaining complete control over their product.
What’s driving the MVNO boom?
Over the past couple of years, we’ve seen a host of new players join the telecom game, including fintech giants like Nubank and Revolut, and phone brands like Lightphone.
Changing consumer expectations, increased mobile data consumption, and advancements in telecom technology are all fueling the boom.
Meeting changing customer expectations
Today’s consumers expect more personalized and flexible mobile services than ever before, and digitally innovative brands are well positioned to deliver on those expectations.
With their focus on building exceptional user experiences and their ability to adapt to shifting trends, these brands can cater to specific markets and unique customer segments in ways that larger networks may find challenging.
For example, a family-focused fintech could offer phone plans tailored to the under-18s market, a travel brand could offer travel eSIMs to their customers, and an HR tech platform could offer workplace phone plans to their corporate clients.
Data consumption is soaring
With the rise of 5G and the increasing number of connected devices such as smartwatches and tablets, data has become a precious commodity.
People are consuming more mobile data than ever before, streaming videos, using social media, and staying connected on the go.
The growing appetite for data presents an opportunity for new telecom brands to offer competitive and innovative data packages that cater to their customers’ needs.
Advanced telecom operating systems are changing the game
Launching a mobile service used to be a daunting process filled with technical, legal, and operational challenges. But just as Stripe's APIs once revolutionized the world of payments, modern telecom operating systems have simplified the process of bringing a mobile service to market.
With the right partner, it’s now possible to launch a white label MVNO in a matter of weeks.
How to launch an MVNO: The basics
In order to start your own MVNO, you first need to know the building blocks of a successful mobile service.
1. Network access: First, you need to secure network access in each market you operate. In the past, that meant months of negotiating wholesale contracts with carriers (that all require significant volume commitments), followed by months integrating your systems with the carriers’ infrastructure.
2. Building the user interface (UI): Every mobile provider needs a user-friendly interface where customers can choose their mobile plan, checkout, manage SIM/eSIM activation, port their number, and contact customer support if required.
It goes without saying that a market-leading customer experience is critical to the success of your mobile service.
3. Billing, telecom taxes, and fees: Telecom billing is highly complex due to the intricate web of taxes and fees that apply to mobile services. Setting up a tax engine that applies relevant taxes and fees to each plan is essential. Mismanaging this could leave you on the wrong side of telecom regulators.
4. Regulatory compliance: Telecom is a highly regulated industry, with laws that vary from country to country. MVNOs must comply with local regulations, including consumer protection requirements, data privacy laws, service standards, taxes and fees. Navigating this regulatory landscape can be daunting, but it’s a necessary step to avoid fines and ensure long-term success.
The challenges of building an MVNO from scratch
Building an MVNO from the ground up is a mammoth task. Between network integration, user interface development, and excruciating compliance regulations, companies would have to invest significant time, expertise, and capital just to get their mobile service off the ground.
For businesses that want to speed their time to market and avoid getting bogged down in the technical and legal complexity of telecom, an end-to-end operating system can make all the difference.
The benefits of an end-to-end telecom operating system
End-to-end telecom solutions, like Gigs, provide everything you need to launch a global wireless service in one package.
Instead of building each component from scratch or partnering with a host of third party providers, you access everything—including multi-carrier wholesale connectivity, billing, tax compliance and a prebuilt user interface—all through one platform.
The benefits speak for themselves:
Cost-effective: By leveraging pre-built modules for billing, network integration, customer management, and regulatory compliance, you will significantly reduce the workload for your team. Ultimately, this means you can launch a mobile service without increasing your headcount.
Swift time to market: With an end-to-end solution, you can bring your service to market much faster. This is particularly advantageous in fast-moving, highly competitive industries where timing is crucial to capturing market share.
Launch in multiple markets from Day One: Access multiple networks through a single integration and offer local mobile services in different markets, as well as travel eSIMs, without having to establish individual agreements with each network.
Simplify regulatory compliance: The right telecom partner will take on the regulatory burden for you, acting as carrier of record (if you wish) and ensuring that telecom taxes and fees are automatically applied according to local requirements. That means your team won’t have to navigate the thorny world of telecom compliance.
Superior user experience (UX): By leveraging pre-built user flows for checkout, eSIM activation, and subscription management, you can ensure that your customers enjoy a seamless user experience. Using an intuitive and fully optimized interface will not only improve customer satisfaction but also help reduce churn rates.
The Gigs advantage
Gigs is revolutionizing the telecom industry, making it easier than ever for brands to capitalize on the growing demand for personalized and flexible mobile services.
If you’re looking to tap into the telecom market and launch your own white label MVNO, you can bring your service to market quickly and efficiently with Gigs.
To find out more, get in touch.