Showing posts with label MVNO Opportunity. Show all posts
Showing posts with label MVNO Opportunity. Show all posts

Monday 25 September 2023

Business Planning an MVNO, Travel SIM or Roaming IMSI product - free Webinar

 We are kicking off the end of 2023 with some free Webinars looking at the key issues facing the doing of Mobile Wholesale vs. the talking, some of them with live eSIMs for delegates (depending on location) so get enrolled today:

Business Plan & Business Planning and MVNO, MVNE, Travel SIM / Mobile Roaming Product

This is an online webinar, enroll at Eventbrite



Tuesday 15 December 2020

MVNO Gold Rule #5 - Launch your MVNO with a single goal and stick with it, best one is Loyalty imo

So we have a new post and this is the first post which is based around a video, or a vlog, if you will, as opposed to some of the videos now being done adding to and updating some of the key posts. This one is a key one arising from a conversation with a customer, which hits on a question we have been analysing following going through CRM to see what makes an MVNO successful. Most of the key ones have had loyalty as the key. There are other factors to consider, especially as explained again and again here in these pages: the biggest enemy of the MVNO is not failure; it's never getting to market, and one of the key mistakes which can be made is choosing your systems around for example revenue generation and low cost, when you actual focus is customer loyalty!

So you can see from this diagram, from the very beginning an mvno needs to work out if it's going to be:


  1.  premium or discount or 

  2. whether it's doing an MVNO either for the revenue as a new revenue stream or it's doing it for the loyalty and 


Obviously these can change over time, and they do -  that's life, right? However life is a lot easier if you know what you're doing, or at least try to plan what you are doing in the beginning and you build your platform and your solution, and you choose your partners around this.


So an example being the two arrows that we have off to the left if you're going to be a discount operator then you may choose a customer service that's low cost which which is kind of at odds with you being premium but it may also impacts your ability to use this product as a revenue service because people probably will see this low-cost and then you won't necessarily contract happy customers and even as a loyalty product because this customer service that you choose may be at odds with how your customers want to be supported with regards to the rest of your business.


Then other things to think around that are for example the branding the marketing the pricing and your channels, so again, what I've seen happening in many MVNOs is that a big established company will decide: “right, I am going to be an mvno I will employ xy&z salesperson from mobile to make sure my mvno is a success as I have heard the worse thing in the world is a failed MVNO, right?” 


Wrong! if you are setting that up from a pure loyalty perspective then establishing the mvno in all the 3rd party channels is not a good idea because


a) it's a very expensive way to sell and 

b) it's going to place your product where all the competitors are and so 

c) you've just wasted a lot of money and commission on a channel, people and processes  that is at odds with the whole concept of your loyalty.

d) your cost of acquisition has just doubled or tripled the RoI


To give you an example, a supermarket mvno in the beginning made most of its sales via its own online channel on a Monday and Tuesday... This is not a coincidence, this is because people were shopping in that supermarket during the weekend and looked at their phones in their supermarket, and the ones that did not buy directly in the store decided to have a little look online to make sure it was a good deal, or just waste their time as customers have every right to do when making a purchase, and then went direct to the customer’s online store. 


Why would you then enable this large amount of customers, who have been into your store, then they have been onto your website, all in your colours, your brand, your flavour of how things are done... to then give them the option to further delay the purchase and go to one of the indirect channels where you are going to pay commission and there is a risk that you will lose that customer in the process, and the experience that customer experience is outside of your control and indeed the customer service post service is likely to be inferior, or at the very least different: It just does not make sense, however that is the situation I find myself in time and time again when launching an MVNO within a large organisation. 


Just because you don't have experience in mobile does not mean that as a successful business, having launched many different products and services in many different horizontals and verticals you should not ask, question, double question and then triple question: “why am I doing this in mobile?”:  Does it make sense or is it just because I've employed somebody who was in mobile and that's the way they did it for a product and a service that is in a completely different space on this diagram above.


At the end of the day, if its a brand play, mobile is all about brand loyalty...


These are all points that I've put here on this blog, but I covered differently in the vlog, sorry video so to get the full low down, experience The Full Monty the full hoo-ha the 360 the total immersive experience you need to check out the video as well as read this and you need to read this again probably after the video and then like comment subscribe hit the notification button if you liked it anyone more content like this … thanks!


 

Friday 17 March 2017

MVNO Gold rule #1 - Keep it Simple

MVNO Gold Rule #1 - Keep it Simple

This is the most ignored rule of all and one of the biggest culprit of failed MVNOs, and by that I mean not the launched MVNOs that fail, but moreover the huge amount that never make it to launch due to over complication, which in turn creates delays and cost which moreover lead to uncertainty and uncontrolled risk in the eyes of many - the killer of all things new and venturous!


But that is not possible, you see, when someone is tasked with creating a mobile pricing model, they revert into what I have become to call the Jekyll-Hyde Frankenstein... a freakish monster of all things mobile rolled into one, with every good idea they have ever seen in mobile across the world, ever, in enterprise, consumer, travel, low-end, high-end; you name it; there is a tariff for it and a model behind it!
The first bicycle - as designed by the average MVNO and MVNO consultant as their first launch product *sigh*. Source

The concept is simple - create a first simple MVNO tariff that will


  1. Make your MVNO competitors think you are going nowhere as an MVNO
  2. An MVNO tariff that will only be attractive to your core Niche and not be at all attractive to the masses of freeloaders, fraudsters, etc. If you cannot charge a premium for at least 1,000 or a few thousand early adopter users you do not have a Niche product that will sell and need to go back to the drawing board.
  3. Be attractive to your core MVNO audience and your limited amount of first MVNO SIMs and bandwidth to respond to real customer feedback
  4. Listen to customers and follow your MVNO brand with private, below the line offers that your competitors do not see but your real early adopter customers can promote to your next "me too" customers
  5. Keep MVNO prices within a sensible range to create trust and avoid anything that needs a footnote like Free this*, unlimited other ¹, etc.
  6. Don't be lazy and just do "free social networks MVNO" or "free VoIP app MVNO" which was OK in 2010 to 2015, or if it is part of a wider campaign but now is weak and infinitely copiable.
  7. Leave your MVNO super tariffs for when you are mass market MVNO
This is difficult to do, the MVNO MVP is elusive, but the easiest way to do it is to start early and get whatever you have working first with a USP that is not easy to copy out to market.

Wednesday 23 March 2016

MVNO World Congress Pre Conference Workshop 2015

2015 Pre Conference Workshop - MVNO Marketing

I had the pleasure of running the MVNO world Congress pre-conference workshop in the 2015 #MVNOIS, so as we run up to the 2016 MVNO event in Amsterdam its probably time to upload some of the slides to give you an overview and share some of the experience.
2015 #MVNOIS Pre Conference Workshop 
The workshop was in three parts, this is the first part that focussed on MVNO Marketing, which in my now 16 year of doing MVNOs, is the hardest hurdle after the MNO agreement and MVNE plus all the other service provision contracts selection. The second part focusses on MVNO Data.
2015 #MVNOIS Pre Conference Workshop topics covered
I Will cover the MVNO Data services, MVNO International Roaming, and MVNO Multi-IMSI points in the next few days / weeks running up to the 2016 Conference, as these areas are key, if not the key way an MVNO can differentiate itself from other MVNOs and moreover its host MNO and grow scalability in a competitive mobile market.
An Activity every MVNO should do almost daily!
The first task was to name 3 Big MVNOs that the audience think market themselves well. This is important on many levels.

  • Firstly, if there are none of them in your market you need to ask some serious questions about why and make sure you are not repeating any of their mistakes! 
  • Secondly, it is where MVNOs most differentiate themselves at conception, but most easily compromise on in launch... and to be honest, from there they often never launch and/or never become successful. 
To be a successful MVNO you need to be able to easily access all the needed data on your customers, process this and send targeted below the line packages at them. The key here is that they are below the line, competitors do not see them, customers love and recommend them, but your competitors do not copy them. I want you to think about this as you go through the slides, and I add my 3 top MVNOs further down.
This is sadly where a lot of marketing time is wasted by MVNOs - above the line copy cat price competition - why?
Most MVNOs develop what I cal a bi-polar frankenstein approach to Marketing.

  • Bi-Polar as they flit between being slightly cheaper that their most expensive competition, to undercutting the cheapest offer from the biggest MNO in an instant. 
  • Frankenstein as the first marketing and even product set, is usually stolen from every MVNO that has ever existed in 5 countries, over 3 MVNO models in 6 different niches... and the result is, well usually awful! 
The way MVNOs market is by sending bespoke offers to their customers that will never be on a slide, as they arrive via SMS and the offer is only available to those customers, or other customers of the MVNO. To do this you need ready and quick access to data:

  • who do they call? 
  • what time do they call?
  • what handsets IMEI/MSISDN database are they using?
  • what locations are calling from frequenting?
  • what locations are they running out of credit?
  • where are they topping up?
  • how much and how often are they topping up?
  • what top-up channels are they using?
  • what type of data are they using, where and how fast?
All this is in the CDRs, GGSN and HLR, and needs to be available to the OCS needs to be fully integrated with this, as well as a tool to bulk SMS, and report who has what SMS, as while you will be marketing daily, its not good to market the same customers more than a few times per month for obvious reasons.
"If you cannot name 3 MVNOs from your territory that do this well, its most likely that they do not have access to this data, and if you do not, then you will not be a leader either" 
MVNOs are a Sales and Marketing organisation. The best ones have great BI and change pricing flexibility 
OK I jumped a few slides here on refining product and marketing, however this slide leads on well from above as well as: When an MVNO examines its subscriber acquisition costs (SAC), ARPU and Churn, it very quickly sees that MVNO led customer to customer and MVNO to customer led marketing obtain customers cheapest and keep them the longest. It is important to have a mix of SAC but these need to be kept down to grow successfully as an MVNO.
Choose and adapt from successful MVNOs, but avoid "Bi-Polar / Frankenstein" campaigns! 
Draw on what has worked and what is (see previous slide) is in budget. EE recently did a huge above the line campaign with Kevin Bacon, which is beyond any MVNO marketing budget, however its OM4G and 4GEE twitter coverage was cheap and genius and well within MVNO budgets.
Back to the three MVNOs from the activity above, go through these points.
In my workshop I then went through the above key points for three MVNOs I think market themselves well. My examples were deliberately different: Lyca Mobile, Virgin Mobile and Tesco Mobile; the key being that while they are very different MVNOs in very different segments, theirs USPs focus on points that the MNO and other MVNOS find hard to copy, they deliver what they promise without extensive T&Cs, and typically their most successful packages are no where near as cheap, nor anywhere near as expensive, as the cheapest / most expensive MNO offerings of the "Bi-Polar" approach to pricing.
My most copied slide! The MVNO must evolve its marketing to launch successfully and then grow
Which brings me to the last slide of the Marketing section, and my most copied slide. Every MVNO that has been successful has evolved through these stages, many that have failed have failed to adapt, either because.

  • They just did not evolve. Some ethnic MVNOs started with a multi-language USP, but as customers learn their host country language the product needs to evolve, or the countries expand.
  • They could not evolve technically as they were tied too much into their host
  • They could not evolve operationally - if the reporting is manual spreadsheets... you are not going to market successfully beyond early adopters.
When launching an MVNO you can get by with the basic tools that an MVNE and the host MNO gives you, as long as this includes: CDRs, IMEI, HLR location of LUs, all transactions, collated top-up info, SMS marketing tools and reports, reconciliation, GGSN logs, etc. These need to be accompanied with the ability to update data settings OTA, edit the SPN OTA, change tariffs real-time, etc, etc. and usually require another 10-20 services to be sourced and integrated to move beyond early adopters.  These are the keys missing from failed MVNOs or underperforming MVNOs.


I hope you find these slides useful and informative. Feel free to paste these slides into your own presentations, as many do, but of course please do the basic common courtesy of quoting where the content is from if you do change the appearance and/or remove any logos, watermarks, etc.

Wednesday 30 January 2013

why Europe's MVNOs still sing

Europe's MVNOs still singing 7 years on...

Six years on from the original article, and 13 years on from the first European MVNO in the UK, the European market is still singing, fortunately!

MVNO market share Europe

Why is this? Well partly as written in my Future MVNO article of a couple of weeks back; Europe is on the higher side of the highest MVNO % of MVNO market share, and that's a big deal. So if one MVNO in one country can represent as much as all the MVNOs in other countries, there is still a long way to go, and every indication that wholesale can represent much higher market share in mobile as it does in other markets. 
W. Europe is at the higher end of high MVNO market share

While Europe and the US are far ahead of the rest of the world, Europe is far ahead of that, with the UK at 14% MVNO market share, and countries such as Denmark, with Telmore MVNO at 800,000 customers in Denmark... and only 3 people live in Denmark! (I lie, its actually 5.5M...) which makes high double digit MVNO market share for just its biggest MVNO!

Why European MVNOs sing

So what contributes to the European MVNO flurry? Well, in order:

GSM MVNO

The GSM network gives Europe a strong advantage, whereas the first MVNOs in the US were using CDMA, CDMAs have lower yield and lower margin and the switch of a handset is a churn catalyst in CDMA, whereas in GSM MVNOs changing handsets is just a churn opportunity

MVNOs and handset

The buoyant handset market has contributed heavily, in countries like the UK sponsored by MNOs, in countries like Italy funded entirely by the user, and in the UK the iPhone phenomenon saw premium rates. When the iPhone launched in the US it was yours unlimited for $22 per month, in Europe the compulsory extra unlimited data bundle for iPhones was not far from that alone!

MNO MVNO dynamic

The MNOs paid quite a lot for 3G licences, and needed to amortise this investment - wholesale has become the MNO cash cow in Europe, and the above factors allow this to be quite a milk machine!

European MVNO market

The European MVNO market is diverse: despite the "common market" coming in to place an embarrassing amount of time ago, Europe is very, very far from a "common market" - Roaming is still a chore, and 9% of Europeans live in another member state, yes 9%: the niche is the MVNOs friend and Europe is full of niche markets

Original why Europe's MVNOs still sing Article (2007)

RE: Why Europe's Mobile Start-ups Sing

Different markets require different business and marketing models
I was sent an article from Business Week with the above title via email by a client; one of those nice comforting articles that make you feel you have made the right choice by doing many of the things that are in the article as they preach is right, with the added smugness of feeling you are doing something a little extra they have not twigged yet!
They are right in that one MVNO model is the low cost route, however there are more important keys I have seen, from behind the scenes, that have made or broke MVNOs in Europe:
  • One is a good network deal: Never underestimate the value of good advice before embarking upon something as hard to chew as an MVNO. There is no point keeping other costs low, if your single most important cost base is inflexible. These situations remind me of heavy industries with inflexible human resource, only instead of being an inevitable legacy issue, it is more a best avoided product of "staff from legacy networks" issue, which brings me to the next point;
  • One's thinking behind an MVNO has to change, it is not a mini Mobile Network: It has to be approached carefully, and its business model needs to be audited by all those involved.
And this is where the otherwise spot on article loses the thread: it comes to the opinion that the only MVNO model is "no frill" and that the US MVNOs are missing this entirely. Both of these are wrong in my opinion:
  • Firstly, "no frills" is not the only MVNO model for Europe; it is just the only one that has managed to master the two points above: thinking differently and keeping costs low. However, there have been casualties, both of which had the "no frills" model that the article preaches, but made both of the grave errors above.
  • Secondly, "no frills", like many European models, is not a model for the US; just look at the all popular iPhone as an example: In the US, AT&T are selling the iPhone for as little as $59 per month. For that you get the all important iPhone, unlimited data, 5000 off-peak minutes, 200 SMS and 450 inclusive minutes... As the iPhone launches in Europe, and more specifically the UK, I very much doubt it will be had for £25 per month, let alone with unlimited data (although on 2.5G only, "unlimited" is not that much!). Where is this going? In the US, mobile, like most consumer goods, is already "no frills" in price, so MVNOs in the US have to compete on other VAS, like the examples of Healthcare in my now ageing but once best selling Next Gen MVNO report... and for those of you thinking this is a plug, its not, its worse; its a "I told you so" ;-)!.
The real MVNO models are yet to come, and while in Europe they will definitely have to be competitive on price, in both the US and in Europe, and the Rest of the World, customers buy, recommend and repeat purchase on many things above price, and I would suggest even the successful "no frills" MVNOs, when you scratch below the surface, have succeeded on qualities offered to their customers beyond price.

posted by Christian Borrman 11:26am 25/09/07

Thursday 24 January 2013

MVNO 2013 Rome Conference


The MVNO 2013 Rome

The MVNO conference is moving to Rome from Barcelona!

MVNO Awards

There is an exciting new MVNO Awards to recognise innovation in MVNO, I will be on the judging panel and really looking forward to this exiting new development

LTE MVNO

There will be some interesting discussions on LTE in the MVNO MVNE space during a breakfast briefing and a panel, etc I will be chairing, so look forward to that as well! 

Meet MVNO Blog

I shall be there for the whole event, use the MVNO contactify link top right or one of the social network links to get in touch...
www.mvnosworldcongress.com

...and much more, see below:

MVNOs World Congress 2013
Date: 22-24 April 2013

Event description: The event is in its twelfth year and is the flagship event in the seven-event global #MVNOIS series.  Moving to new venue city Rome in 2013, the event will focus on the global opportunity for MVNOs with dedicated streams on CEM, M2M, LTE, WiFi, Quadplay, Retail, Brands and Roaming.

Event Highlights:
·         NEW! MVNO Start-up Summit – introducing the CEO’s of the newest MVNOs to the stage to answer audience questions on wholesale SLA’s funding, marketing, launch and gaining those vital subscribers!
·         NEW! MVNO Awards - celebrating the latest innovations and success in the MVNO industry
·         Dedicated Focus Day on Brand, Retail and Roaming – featuring Poste Mobile Italy, The Post Office UK, Tchibo, Trace and Virgin Mobile, Dobrytel and Roam Mobile.
·         Dedicated Stream on CEM and Partnerships – featuring Solavei, *bliep and Ting
·         NEW! Breakfast Briefing: 4G Wholesale by Alex Besen - In-Depth Look at 4G LTE Wholesale Business Models & Partnerships
·         NEW! The Congress moves to Italy this year.  Make the most of your opportunity to network and socialise in the beautiful city of Rome.
·         Global Focus – Global MVNO update covers Europe, Asia, the Middle East, Africa, Latin America, Central and Eastern Europe for the most comprehensive insight into international MVNO activity
·         NEW! Focus on Central and Eastern Europe – reviewing and analysing the latest MVNO launches in CEE
·         Extended Exhibition, on-site demos and networking opportunities. See the latest innovations and meet leading MVNEs, MVNAs and technology specialists.

Sunday 20 January 2013

mvno and the brand

MVNO and the Brand

We have heard a lot about the brand MVNO and MVNO and the brand, unfortunately most of it is confined to the conference room and reports.

Brand MVNO

The Brand MVNO is where it all started; Virgin Mobile UK spent a lot of money on promoting their brand, and they were right - look at how much money Vodafone started spending on its brand post Virgin success vs. before! The problem was, Virgin then went to conferences saying: "don't copy us unless you have £50M to spend on your brand" which the MVNO industry unfortunately generally read as "don't spend anything on your brand". The Brand MVNO Model is covered in this post.

MVNO Brand

The Brand is a critical part of every MVNO, from the pitch to the MNO to sales:
  1. The MNO is putting its faith in the MVNO ability to access a market - without a brand, how long will that last? Brand is one of your strongest MNO negotiation points!
  2. In fact all your MVNO partners will be sizing up the opportunity of your brand when they negotiate with you, as Brand = ability to sell, ability to distribute
  3. The brand will determine your your uptake and limit your churn. Remember, Remember that MVNOs live and die on acquiring customers cheaper (than the MNO can) and keeping customers longer, and the Brand is key to this.
  4. There is a role for the niche within a niche with brand: Brand helps you compete within even an extremely competitive space such as the Ethnic MVNO market

MVNO Brand as part of Marketing strategy

However, be aware of how you use your brand: see matrix below; many MVNO brands today are in the dangerous "follower" space, especially those that do not have a defined MVNO marketing strategy. Some may try to come in at the Leader level, however this has its problems, the key being that it is expensive to maintain: you can find yourself at a monthly / quarterly review renewing media that just is not effective at selling because it is protecting your brand, you may also be even considering subsidies or at least a large amount of arbitrage/utilisation risk on your bundles to get here...

Virgin mobile entered as the challenger, and did not move into the leader position until maybe 2-3 Million customers when it essentially became and MNO brand of its host, began subsidising handsets, etc, etc.

MVNO Brand Values

Becoming a challenger is not hard: if at first you have defined your product and segmented your market, the brand and its values should not be hard, but check, do those value ring through? An overwhelming feedback in the latest MVNO conference in Paris, from Red Bull, NRJ, Bleip and more leading brand strategy MVNOs commented on one thing: NO SMALL PRINT. If your brand is simplicity, honesty, etc, small print goes against this. Most MVNOs win over the MNO on simplicity, if you look at the MVNO segmentation post. Does your MVNO product reflect your MVNO brand, is what you are doing new, or just rehashing what the MNO does???

Work these simple points out, and not only will your negotiations with your MNO and other partners be simpler, but your MVNO will benefit is acquisition and retention - in this sense, every MVNO is a brand MVNO!

Original MVNO and the Brand support page:

BRAND IDENTITY IN MOBILE SERVICES

For a brand to have any value it must mean something to the customer and to do so it needs to be exclusive. This is not compatible with trying to own all areas, sectors and parts of the market with just one brand, as most mobile operators do today. Because of this, most mobile operators' brands are all over this matrix. Note that successful MVNOs, like Virgin Mobile, started as a challenger and are now becoming brand leaders, whilst minimising any association with the "follower" values.
©Copyright 2001-2005 Christian Borrman, All Rights Reserved. Reproduction Prohibited

Monday 16 April 2012

Ad funded mvno business model and the MVNO industry summit

Ad funded MVNO 

As the MVNO summit is just around the corner; a question that is often asked and/or a comment often made in MVNO conferences is:
  • will MVNO business model X work in Y country/market, or
  • X MVNO business failed so that MVNO model does not work... 

Is the ad-funded MVNO model still viable?

The ad -funded model is one of them, and as such has been part of my new blogs and old legacy MVNO blog for a while and can be found here: MVNO business models. You then of course have the other end of the scale, usually those who argues against MVNOs from the beginning and have now had to swallow their words as MVNOs make bigger and bigger percentages of MNO bottom lines: people who say that MVNOs as a whole  don't work when one happens to fail! Back on the more moderate heckler  let's deal with One of the most frequent is that, if Blyk failed then the ad funded model does not work... This is just plain wrong on a few levels:
  1. 50% of all new businesses fail. In this respect, MVNOs are probably one of the best businesses you can invest in, as the failure rate is actually in single % figures in most countries over time. It has been higher, for example in France at first, when the regulator forced MVNOs, the result was that the network operator agreements were so restrictive that they strangled the first MVNOs... however they were all absorbed by the host MNO, so you could argue it was intentional: if they were proper failures the MNO would have set them out to dry rather than absorbing them. Blyk was also absorbed by its MNO - an MNO has full visibility of an MVNOs activities and potential, and they do not flog a dead horse!
  2. The "ad" is very generic. If you look at the add business over the last few years you will see most of the traditional spend has all but disappeared and been replaced with display ads, Blyk started with a model based on ads that suddenly went into decline.
  3. Mobile advertising is still in its infancy, it has been for 5 years, however this is now changing

Will the Brand MVNO, supermarket MVNO model, etc work in my country? 

In short, what does this mean? well it means that there has never been a better time to launch an ad funded business, as long as you are choosing the right type of ads, when to send them and, like any business, are careful how you spend and manage cash flow.

So, with the biggest MVNO summit to date, now extended to three days, let's make the MVNO Summit about where and how we are moving models like the ad funded model; add funded voice, data and SMS/MMS, to market in new countries, and maybe even take part in the MVNO challenge...

I will be adding to this list over the coming months, feel free to comment, like the  MVNO Facebook page, MVNO Google+ page or follow @MVNO_ on Twitter if you want to be notified of these updates

Wednesday 14 March 2012

Samuel Eto'o MVNO cameroon the first of many personal mvnos

A very interesting MVNO launch recently has been the launch of Samuel Eto'o Fils is to launch his own MVNO in his home country Cameroon.

before going into detail, I want to get across that is is important in many ways:

  1. It is in Africa, a continent that has been a world leader in many mobile developments, most so in mobile payments where there are multiple players in multiple regions, and as such the MVNO could server as an important enabler of new mobile technologies where the MNO can sometimes be slow, as well as the regulatory reform that most African countries are on the cusp or or in the midst of
  2. It is football, the football MVNO has been very slow to market for various reasons, too many to list here from the last 10 years, but the time is right for the football MVNO, as well as other affiliate MVNO schemes, however, what is important is that the right club, or in this case the right player initiates and sets the tone for others to follow, which brings me to
  3. It is the right player, in the right market; an older, respected player who is seen as a positive role model and has done lot's of well intended charity work, not just the token celebrity PR charity work, not just in Cameroon but further afield, whose "brand equity" will export to other countries, but has not chosen a crowded or too high profile market in which to launch
So far so good. Like with any MVNO, there are still pitfalls and the above are by no means a guaranteed recipe for success, however we start well, which is important.

African MVNO opportunity

The African market has been crying out for more MVNO activity for a while. It is a very interesting market where I have done quite a bit of work, from rolling out pan-African pre-pay TV, VAS aggregator and social networking products as well as other projects around pan African mobile payments: in short:
  • The market wants regulatory reform, is mostly there, it needs a vehicle to push it, VAS aggregation or app stores may push it, buy MVNOs would be better for everybody - from mobile number portability to single short-codes and numbers in every country to real pan African aggregators
  • The market wants more innovation, mobile payments got Africa off to a flying start, but a lack of dynamic vehicles is slowing it down. Once MNOs have got over the shock of MVNOs (usually about the time they see the amount of almost 100% EBITDA positive revenue they generate) they are also a fantastic platform for innovation that does not entrench the market where each operator mimics the other no matter what (GPRS, SMS, PTC, etc). That is, an MVNO in the states could have launched push to talk and would not have caused a de facto push of all MNOs to PTC, as it did with Nextel launching PTC: all that money later, where is PTC now??? 
Personal MVNO opportunity

The personal MVNO had to happen, it is a subset of the Brand MVNO opportunity and could work very, very well as
  • Consumers tend to grow stronger and more loyal followings than brands, and they do not tend to go out of fashion as soon as other brands do. 
  • They also lend themselves to a wider Value Added Services (VAS) opportunity, where the football club or other brand tend to use the MVNO as a brand extension for their core product, a person can easily endorse a wider range of products without diluting the proposition and as such keep the product fresher, more relevant, for longer. With Football based VAS we have rolled out for various MNOs and MVNOS we have seen subscriptions to footballers' feeds be much, much more loyal than those of clubs or leagues
  • Personalities tend to cross borders better than clubs, which at the end of the day are more "national". there is therefore more opportunity to export both the model and the brand itself.
  • people tend not to have a conflict: where a club may be sponsored or have links with an operator, a personal brand is seen as a "free agent".
However, having said this, the brand is important - it should be an inclusive brand. Eto'o does not spark a controversy or an objection; controversy may sell initially, but it does not expand well, nor attract the golden feature of any MVNO: loyalty. you also do not want a brand that even the most loyal fan may feel ashamed of or want to keep quiet at any moment. That is, with a club phone, you do not want it to ring when you are in a bar watching a game with a bunch of supporters from another team, or when you have beaten someone away... a player does not have that "exclusion".

So what will be key to personal MVNO success:
  1. Value added services, starting with the obvious (which should be for free) but moving beyond that
  2. Getting the right deals and partners: the MNO, MVNE and other contracts should not have the usual clauses that make it difficult for the MVNO to be traded, sold or floated or even ported, should it become too big or too different to what was expected and no longer fit either parties strategic needs. This is the case for any MVNO, but more so with ones like this which are firsts, and the unknowns are huge: this could easily attract 1 million or more of the Cameroon population, or could only have 50,000 subs after 3 years, even then, the spend, type of usage, handset preference and many more unknowns mean that any/all of the parties may outgrow or be outgrown by the product.
  3. keeping it simple and scalable: no personalised handsets, no VAS that cannot be scaled or retracted or need silly numbers to get ROI... the business model needs to work on many levels and adapt to the unkowns
If it does this we may well have out next MVNO model darling, and it will be all about the brand again... bless :)

I shall be adding more in the coming months and pasting updates vai the Virtuser Google+ and Virtuser Facebook pages, so please like us on Facebook and +1 us if you have found this article interesting, useful or helpful. 

Thursday 23 February 2012

Free entry to French Mobile market

Free MVNO France

Are MVNOs Free in France?

Its an interesting twist on words, calling a new operator "free" but that is a comment for a coffee later. And no, the answer is nothing is free in France, you pay for everything, even being an MVNO :)

What is interesting is the MNOs starting to see the strain of Free. When Virgin Mobile was launched in the UK a similar trend occurred, whereby many people had just had enough of  the complexity and uncertainty of spend on traditional tariffs. In this sense, Virgin Mobile had close to 2 million customers when it had expected to have 200,000.

So what does this mean for MVNOs? In reality these people are the early adopters / first movers. Those whose dissatisfaction with their present offering is so strong that they will take anything new on the market. This is an interesting phenomenon I have seen from my last few MVNO launches in mature markets, whereby you can allow for a certain take-up, sometimes even a breakeven figure of users, to be attracted to a new network just by addressing a niche well enough to capture a single digit percentage or even percentile of a mature market's monthly mobile churn.

So what does the MNO do when and MVNO has its breakfast?

So these were the first movers. In the next two years we will see the me-too's and followers follow, typically 70-80% of any given market, and these will be best attracted by mainstream, niche and other MVNOs that successfully target and attract users from any given market segment that the MNO itself is weak in. So this is a clear sign that French MNOs need to open up to wholesale and capture these niches as strategically and innovatively, and as quickly, as possible.

In many MVNO business models, I have had this element of customer attraction, which I call "churn soak-up" at anything between 5% and 40% of an MVNOs take-up in the critical first 6 to 9 months of operation. The amount of take-up is directly proportional to how well this MVNO business plan, brand, product and proposition addresses a niche, and to some extent how much and what type of marketing is done to address the market and the strength of the MVNO's brand. If you are willing to invest the time (and some money) in getting both the brand and the proposition right and targeting the brand/proposition well (all within sensible SAC margins) then this element of take-up can be in the double digits of growth and soaking up significant percentages of churn in a market.

Update 2013, post 2012 networking conference in Paris: The host MNO did nothing, another MNO took the two biggest MVNOs as full MVNOs on their network! as the Dutch (KPN) say: wholesale is better than no sale!

The flipside? when done well, these customers stay with the MVNO brand that successfully addresses  the niche, long after they have churned from the "rebound" operator, in this the rebound fling is Free in France :) (yes I got to one of the amusing twists of its name :)