Wholesale pressures add up to a need to drive value for MVNOs
Roam Like at Home brings many benefits to consumers, but challenges certain MVNO price models. There’s no guarantee that wholesale prices will reflect changes in end-user prices that are being driven by EU legislation. So, MVNOs need to rethink their value opportunities and to take action to target more promising markets.
Last week’s MVNOs Europe conference saw some heated discussion regarding the implications of the new EU policy of “Roam Like at Home” for MVNOs. Some executives from leading MVNOs pointed to the pressure this will place on their businesses, as they may not be able to compete against MNO propositions, due to the inflexibility of wholesale rates. They pointed to challenges faced by the industry – in which MVNOs have long been seen as challengers to MNOs, with a key role in ensuring competition and fairness for consumers.
Despite the best intentions, as one speaker put it, it seems that RLaH will likely pose challenges for existing MVNO business models. So, why not rethink the value behind your offers?
As others noted, MVNOs have an important role to play, both in shaking up the market and in reimagining customer service and relationships. If there’s one area in which MNOs have been complacent, it’s the business sector. While MNOs have been happy to serve the needs of corporate business users, they have tended to neglect smaller businesses, as we have reported on many occasions. Intriguingly, many treat companies with 10 or fewer employees simply as consumers.
Unsurprisingly, agile and nimble MVNOs can make a difference. By being focused on a specific niche, MVNOs have the opportunity to demonstrate and capture value from a defined target group of customers, with dedicated business services, such as call management, call recording, mobile PBX and more. By doing so, they can increase the value of their service offer and, at the same time, side-step the uncertainty generated by precarious roaming offers.
Indeed, as had been pointed out, a focus on home markets rather than on lower-cost calls, could in fact see the evolution of MVNOs towards a more varied set of propositions, which can, in turn, secure greater rewards as well as deliver more value to customers that are currently overlooked by larger providers. To find out how to develop a winning proposition for business customers and to avoid being trapped by inflexible wholesale pricing models, get in touch with Gintel.