MVNO’s: Keeping Costs Down, Customer Satisfaction Up

By Leah Meyer

The global MVNO market is growing both in revenue figures and in terms of penetration worldwide. By 2020, the global MVNO market is expected to reach $73 Billion, and subscribers are expected to exceed 300 Million. Incidentally, MVNO’s account for just 10% of the global telecom market.

Global MVNO Break Down

The market now sees critical worldwide markets opening their doors with more supportive MVNO regulations as regulatory agencies gain an understanding of the beneficial effect of MVNO’s in the mobile industry. Economic giants like China and India will just add fuel to the MVNO fire as their governments following the European mobile of embracing a more competitive mobile network market: In other words, they are eliminating monopolies.

MVNOs often have been far more successful at running a cost efficient business than the existing mobile operators. The global voice services market is expected to be stagnant, whereas data and value added services are expected to generate revenue for the mobile market. MVNO’s play an important role to address this segment and increasing technology advancements such as LTE and 4G infrastructures are expected to provide new avenues to the MVNO market. However, according to Grand View Research MVNOS lack in expertise may restrict market growth over the next six years.

Jacob Katsof, CEO & co-founder of UpChannel, understands that the MVNO business model is lean:

“Customer friendly prices come at the expense of amenities that tier ones can afford to offer.”

However, the combined market shakeups of new technology and exponentially increasing smartphone penetration have created new opportunities for growth that MVNO’s lean business model are not structured to take advantage of. They simply do not have the resources and R&D budget to build, test and deploy applications for the smartphone users.

This is where UpChannel comes in: We provide solutions that gives MVNO’s the technological tools that the tier ones have, delivered through a mobile first approach. We create, run and upkeep the app, so that our clients can use their capital to grow their business.

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