Thursday, 12 January 2012

MVNO in a Box

MVNO in a box

Readmade MVNO, by ACME

The MVNO in a box has changed, so what has changed? Well, the starting point, not the end point: there are MVNAs now that start at €1,000, ok you still need to market the product, pack the SIMs, distribute them and more, but it's still a low starting point and this is important: you are not necessarily going to carry on and expand with this solution, but the starting point is low enough for more to come through, refine the service and the product, learn a bit more about mobile, etc before then going back to the MVNE or MNO table with a refined plan and some actual numbers. This is important for four key factors:
  1. Fewer MVNOs failing to ever get to market or going bust getting there
  2. Better services: there are people who know services and there are people who know mobile, that canyon is very seldom bridged, zip wired, and sometimes not even crossed!
  3. possibility of funding: the amount of potential MVNOs I and the MNOs speak to that are looking for funding is huge: huge because there are many, and huge because they very, very seldom get funded as you have half of the funders fed crap from people who pretend to know MVNOs saying they cost £5-10 million, and those that do understand just will not take the MVNE/MNO risk or stomach the unkowns through due diligence: a small going concern is differnt
  4. they will stop people competing on price: so many MVNOs start with a value proposition, and a conviction that the MVNO will take 6-12 months less time that it actually does... 6-12 months later they tend to descope services to launch quicker and the first to go are the Value Added Services... and so they compete on price. One thing is clear - a €1,000 MVNA is not going to permit you the lazy luxury (lazy as competing on price is just the most expensive marketing and product development you can do) to sell on price - you are going to have to sell on service. There are also fewer SIMs, so you are not going to waste them: this means making sure you charge for a SIM, only sell it to someone who wants it and sell it at a profit... All failed MVNOs that did not fail because they were silly ideas or other high risks fail by a) cutting VAS, b) giving away SIMs, c) selling on price.

MVNE vs MVNA

The end point is still the same: use your MVNO in a box if it allows you to prove a live concept with the same budget you were previously going to use to explore or prove a concept with (research, reports, etc). Then take a refined trial service and apply the below logic from my post of last year to an MVNE / MNO proposition, which if good, will not come "in a box" but will need some hard work, but it will be hard work you will find the MNO or MVNE very willing to help you with!

Original MVNO in a box article 2011

I have just been through the MVNO Industry Summit Linkedin group and been on a rant! Why? The first was someone asking if anyone if anybody had an MVNO in a box solution. OK: the MVNO has come a long way, the first one took several years, and to be honest, my shortest engagement on an MVNO has been 6 month, and that is when I have joined at least double that time into the process, and I have managed to accelerate the process by at least 4-5 months. MVNOs, along with app stores, are the single most complex products you can launch in mobile, and the technical parts working are just the start. Forget "in a box" and think, what is my box that I will tick in the market. At present, if you look at the mobile consumer as a whole, probably only 5% to 10% of mobile consumers could actually buy a product "in a box" The most part buy a mix of device matched with an almost bespoke tariff, term, contract and other extras, bolt-ons and more, let's not even begin with accessories, ring-tones and the like. Therefore, if you want an "MVNO in a box" think more about if your product that is simple and relevant enough that i would enable a significant market of consumers to buy your product "out of the box". you will then be of enough interest to the market and an MNO that your "mvno solution in a box" worries will practically go away!

originally posted by Christian Borrman 18:50pm 04/03/11

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