It’s hard to underestimate the importance of MVNO virtual network operators in the market. They are starting to outpace traditional providers and it’s really no surprise why! They offer customers tailored solutions, are generally less expensive, and can focus on niche markets.
It’s only logical that MVNO solutions are emerging as a powerhouse in the telecom space. Today’s customers require an unprecedented level of choice and customization, and smart MVNOs understand how to make that happen. That being said, starting up your own MVNO is a little trickier than it might seem!
Understand The Start-Up Funding Costs
You will need some capital to start up your own MVNO. There is a lot more that goes into it other than simply purchasing airtime and data. You need to partner with a company that will provide you with the support infrastructure to keep your customers happy and your business flowing. After all, you’ll need to field customer calls, implement a billing system, and account for emergencies like loss of service.
Funding is critical, so start thinking about where it will come from. There are several routes that you can take to get the money that you need to start up your MVNO.
- Angel Investors and Venture Capitalists- if you go this route, you’ll have to have a solid business plan in place that will show your investors how they will make money on the backend. Angel Investors and Venture Capitalists are not altruists, and they want to see a clear return on their investment. Scoring venture money is great, but you need to have all of your ducks in a row.
- Crowd-funding- you can go on any number of different crowd-funding platforms to try to raise money organically. You’ll have to present a tangible reward for people who contribute, so consider what you can offer carefully. Perhaps it’s the ability to get in at the ground floor, a few free months of service, or even a small share in the company.
- Self-funding- if you are able to swing the startup costs yourself, do it!
Know What Sets Your MVNO Apart
Like any other business venture, successful MVNOs rely on the ability to speak directly to their niche and deliver products that they want. Think about who you want to target and offer plans directly for them. For example, if you’re targeting Millenials, you might want to have plans that are heavy on data and texting, but lighter on actual phone call time.
Additionally, think about your niche when you choose an outsourcing call center. If your customers have concerns, and they will, you’ll want to have reps who can speak with them in their language. Millennials value instant gratification, so call center employees who can use Live Chat and Social Media will be better equipped to deal with their needs. (v)WeCare reps are skilled in all new technology, which is what makes us a great partner for companies that want to reach younger demographics.
Find A Good MVNE
Finally, you’ll need a supportive partner that can handle all of your back office outsourcing needs. The last thing that you want is for your customers to suffer because you don’t have your administrative ducks in a row! Get yourself an MVNE that can support you on the backend.
Don’t try to take on MVNO billing, customer service, and all of the other infrastructure needs that go with running a successful MVNO on your own. In the best case scenario, you’ll burn out. The worst case scenario is that customers will flee and give you terrible reviews. Not working with a quality MVNE can sink your business. Telgoo5 has years of experience helping MVNOs scale effectively while handling all customer needs from soup to nuts. We deal with billing, customer problems, security, and infrastructure. Our comprehensive MVNO billing software is really second to none and offers seamless billing with all customer data backed up in the cloud. We also conduct weekly calls with all of our MVNO partners so you’re always in the loop. If you’re going through a rapid scaling phase, we’re flexible, equipped and able to transition smoothly. Our mission is to make you look like a superstar to your customers, and we have a proven track record of success! Telgoo5’s billing system was designed to be all about you- our trusted partner!
Starting an MVNO can seem a little bit daunting, but it’s doable if you follow the steps outlined in this article. Why not be on the cutting edge of a brand new industry?