The value of the right Mobile Network Enabler (MNE) strategy
|Our latest analysis explores the advantages to mobile operators of developing a “white label” strategy. The idea behind a so-called Mobile Network Enabler (MNE) strategy is to make it easier for newcomers to provide services uising mobile operators’ networks.|
In an MNE relationship, the operator manages the underlying network. All the newcomer has to do is have a business idea, a marketing strategy and a name. Like MVNEs, an MNE provides all the necessary tools to establish oneself as a mobile provider. Access may include the following possibilities:
A self-service interface – this allows the mobile provider to make important changes to its service without involving the MNE. For example, it is able to create new products, number series and price plans, as well as handle end-user signups/changes without relying on the MNE’s resources. The elements above, however, depend on the specific type of wholesale agreement that exists between the mobile provider and the MNO. In some agreements, for instance, it is stipulated that any price change must be negotiated.Provisioning – this refers to the technical aspect of handling the areas mentioned, something that many mobile providers are unable to do for themselves.Consumption counter – gathers details on end-users’ telephony and services consumption, including prepaid, postpaid and scratchcard information. For prepaid and especially scratch cards, consumption needs to be monitored in near-real time to avoid losses.End-user billing – generates a comprehensible and accurate invoice for the end user.Reporting tools – generates statistics on end-users’ consumption patterns.CRM systems – handles the mobile provider’s interaction with its customers In short, an MNE offers all the basic functionality that a mobile provider needs to enter the market. That means the provider is not required to develop any technical expertise of its own, or any other qualifications. All it needs to focus on is developing a strong business case and building up a powerful brand.
The advantage of an MNE strategy is that operators can lock mobile providers onto their networks much more effectively – and that means achieving greater control over the market. After all, it is very difficult for a mobile provider using an MNO’s MNE platform to switch to another MNO, as this would require changing over to a completely new system – including to new SMS and MMS gateways, which would need to involve the active participation of the provider’s customers.
The biggest advantage of an MNE strategy, however, is that it can attract mobile providers to operators’ networks by significantly reducing the barriers to entry. It allows mobile providers to enter the market very easily and quickly, making MNOs more attractive to MVNOs, SPs and BRs alike. And a successful wholesale strategy translates into higher overall market share.
These challenges, and more, are highlighted in our new report, How to Succeed in the Second-Generation MVNO Market, which analyses the major changes taking place in Europe’s mobile markets and helps mobile players of all types develop their strategies for future success.
How to get success in the second Generation MVNO Market