White Paper:
With the Right Support, MVNOs Can Enrich Network Operators with Innovation, Differentiation, and Market Share

This white paper looks at what it takes for network operators to successfully partner with Mobile Virtual Network Operators (MVNOs) to enhance market share, revenue, and profitability. Drawing in part on our experience as a leading MVNO enabler, it examines how MVNOs have evolved differently around the world, and draws some conclusions as to what kinds of MVNOs and business plans are most synergistic with and beneficial to the financial success of their underlying network partner.

Our conclusion is that when their products (services) are largely undifferentiated, MVNOs compete with their hosts, leading to potential market share gains, but margin erosion. However, when significant differentiation exists, and well-defined and underserved markets are identified, MVNOs can help host networks grow share, reduce churn, and maintain or enhance margins. In effect, they become specialty brands and marketing organizations with expertise and focus that the network operator cannot apply to each and every niche opportunity.

This paper finishes with an overview of the business relationship, service differentiation and charging tools, and other capabilities that network operators need in order to cultivate long-term, cooperative, profitable partnerships with MVNOs.

Author: Grant Lenahan, Executive Director, Telcordia

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