With the rapid growth of Internet of Things (IoT) applications and platforms, how can MVNEs embrace this great opportunity by building an IoT model.
The mobile virtual network operator (MVNO) model has been around for many years now and has allowed non-telecom, wireless service provider wannabe to host wireless services without owning wireless infrastructure. There are several business models in practice, which has emerged based on the level of participation of three major players MNO, MVNO and MVNE.
The Mobile Network Operator (MNO) is a traditional telecom operator that owns network infrastructure, MVNO is a provider of services to the end customers, and Mobile Virtual Network Enabler (MVNE) is a provider of supporting business and operations services needed by an MVNO to operate. In a typical MVNE based model, MVNE plays a central role in connecting NOs and MVNOs providing a slew of business and operational services. Major carriers have implemented MVNE layer to allow them to on-board MVNOs.
Focusing on the MVNE based model, and moving forward into the near future where IoT market begins to dominate the marketplace – we can draw an interesting parallel with the MVNE based MVNO model existing in the telecom world. The MVNEs have an opportunity to become a major player having an existing framework for business and operations services that will be required by IoT services. MVNE can transform themselves into IoT Enablers (IoTE) by focusing on one more verticals (i.e. utilities, healthcare, transportation or other industry). That should create growth opportunities for MVNEs, and allow quick monetization opportunity for a large number of emerging IoT services from various industries.
The parallels can also be extended to revenue and customer retention models in the MVNO marketplace to IoT that we can elaborate further in future blog.