How 5G Is Expected to Change the Future of MVNO Providers?

Maximizing the utilization of spectrum and network resources is extremely important for a telecom operator. In dearth of sufficient number of subscribers, MNOs (Mobile Network Operators) run the risk of diminishing profits as their idle resources get wasted.
The fact that they still have to spend on maintenance for such resources is nothing less than a double blow. In the light of this emerging situation, MVNO providers have come across like a breath of fresh air.

An MVNO (Mobile Virtual Network Operator) is an operator that leases spectrum and resources from an MNO and sells it to subscribers under its own flagship. Depending on their own capabilities, MVNOs can be divided into the following categories: Skinny MVNO, Thin MVNO, Thick MVNO and Full MVNO.

5G: A New Dawn for Mobile Networks

5G is the latest in the long list of evolving mobile networks. It promises faster data rates, lower latency, and improved energy savings along with considerable reduction in costs. Such is the anticipation around 5G that most MVNO mobile services consider it as the harbinger of a new dawn in the telecom industry.

How 5G Changes the MVNO Game Plan?

Whether big or small, MVNOs have always had a straightforward game plan – lease spectrum from MNOs and sell their services with better branding to subscribers. This helps an MNO as his spectrum does not get wasted and it helps an MVNO as he is able to run his services without creating an infrastructure. Although setting up a mobile network is not part of an MVNO’s work requirements, innovation in marketing and product strategies has always remained its USP.

The launch of 5G has provided a new impetus to the MVNO mobile services – not because it is faster and more reliable – but because it allows for the slicing of the network and provides the ability to assign each part (slice) a particular quality of service that fits a specific use case. This allows an MVNO to better categories its services. For example, for an internet user who wants to download large number of files from the Internet, an MVNO can increase the bandwidth but for a gamer who seeks better ping to the gaming server (and is not too concerned about data rate), it can reduce latency. By selectively assigning the quality of internet connection, an MVNO can keep its distinct customer base happy.

Increased Importance of MVNO Billing

As mentioned before, MVNOs can be classified according to their scale and infrastructure e.g. Thin MVNO, Thick MVNO etc. The billing requirements for each of these MVNOs are different from one another. While some smaller MVNOs take the help of MVNEs (Mobile Virtual Network Enabler) for their billing tasks, there are other bigger virtual operators that carry out MVNO billing by themselves.

Although the launch of 5G augurs well for MVNO providers, it is also expected to increase their billing requirements considerably. Moreover, the increased use of IoT technology and devices will also need to be addressed and billed by MVNOs. Hence, MVNO mobile service providers should start focusing on their billing to carry out their operations smoothly in the future.

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