Reseller MVNO (Branded Reseller)
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A reseller MVNO operates either under its own brand or co-branded with a Mobile Network Operator (MNO). This type of MVNO typically brings a brand, distribution channels, and/or a large existing customer base to the partnership, which it can leverage for sales.
It is often the easiest MVNO type for a host network operator to accept, as the MNO retains control over most of the core processes.
The Reseller MVNO possesses no core network elements and focuses solely on customer contact and relationships.
Reseller MVNO Model - Advantages
- Low Startup Costs: The time to market and initial investment are low because no significant investment in network infrastructure is needed. The MNO handles most of the technical aspects.
- Core Business Uplift: The MVNO can be used to drive an uplift in the reseller’s primary business.
Reseller MVNO Model - Disadvantages
- Lack of Control: The MNO maintains ownership of customers, user data, post-sale interaction, SIMs, and infrastructure. They are also responsible for setting tariffs. Revenues from incoming traffic belong to the MNO.
- Brand Translation: The existing brand may not translate well to the mobile sector.
- Industry Expertise: A branded reseller may desire more control but often lacks the necessary telecom experience. Gaining market share from established operators is difficult without a solid understanding of the mobile industry and its economics.
Reseller MVNO - Operational Model / Architecture
The reseller MVNO is primarily responsible for the costs of marketing, sales, and distribution.
Reseller MVNO - Business Model
- Revenues: Revenue sharing with the MNO. This typically involves a certain gross margin over the MNO’s existing retail offers. In some cases, the reseller may also receive a commission per active subscriber acquired.
- Costs: Marketing, sales, and distribution.
Additional Information on MVNO Types & Operational Models
For a visual deep-dive, watch our video on Thin • Medium • Full – MVNO Types and Operational Models.
Check out our podcast: “Enabling MVNO Success: A Guide to MVNE” – on Spotify or SoundCloud
