How MVNOs in India could be a potential game-changer

By Vidhu Nautiyal, Co-Founder and Chief Revenue Officer, CloudConnect Communications Pvt. Ltd
March 18, 2022: According to research, the mobile virtual network operator (MVNO) business will be worth roughly USD 125 billion by 2027. In recent years, the widespread use of the internet and mobile devices has increased the demand for low-cost telecom services, sowing the seeds for the acceptance of mobile virtual network operator (MVNO) services. India's first and only internet business, VOIP-based Cloud Communications, has a vast consumer market. The MVNO has a contract with mobile network operators (MNOs) to get bulk access to network transport services at wholesale pricing and independently allocates retail prices. As a result, MVNOs provide high-quality data services to their clients at lower costs, which drive their demand considerably.
Being the key feature in the VNO model, the infrastructure sharing service is likely to acknowledge some of the major concerns that are faced by the telecom industry in India. A quick evaluation of this business model shows that benefits are threefold or higher. First, network service operator (NSO), which has invested hugely in getting spectrum licenses but has delayed its services because of economic factors, can optimize its resources by allowing new VNO to utilize them to deliver services in the new markets. The NSO will collect recurring income from the VNO for using these resources. The reseller model creates opportunities for entrants or helps existing players widen the scope of services. A VNO can be a local Telco, an MSO, or even a cable operator who can provide the supporting infrastructure. 
The supply of new telecom services will be significantly reduced under the infrastructure sharing paradigm. The instant benefit of this will go to end customers who will enjoy services at the most competitive prices. When we talk about the MVNO industry, we know new countries are springing up every year. There are Latin American and African countries launching, but the big story here is South-East Asian countries which are coming up with new MVNOs at an incredible speed & potential. It is prevalent; India is famous for its telecommunications market. There are debates and talks about the massive industry, and the MVNO market ASEAN countries will be covering. 
Currently, the regulator has permitted MVNOs to operate, and only the state-owned incumbent BSNL is permitted to perform, with Aerovoyce in partnership with Adpay. India's primary telecom market promotes and supports MVNOs to participate and widen their footprint across the country.
MVNOs are gaining massive attention by providing customized service and a better customer experience than MNOs. Just like, Cloud Contact Center hosts on the internet–based servers to engage customers over voice, chat, email and other digital channels and is accessible from anywhere, anytime, and across devices. MNVO's focus is to offer services instead of just maintaining the telecom network and infrastructure, increasing their adoption and enhancing the market space. 
Some significant trends in MVNO to look forward to in 2022
Focus on making innovative solutions
Due to the increased demand, several industry players are developing unique solutions to meet customer demands while keeping up with a competitive edge in the market. For instance, in 2021, a prominent cloud communications firm introduced the full range of CPaaS solutions for Mobile Virtual Network Operators. As per the company, this offering aims to enable the enterprises to deliver extraordinary customer experience while cutting down on operational costs.
Inclination towards full MVNO model 
The establishment of a full mobile network operator model is strongly encouraged because it provides complete control over the core network infrastructure. The MVNO has complete control over the network, allowing it to provide better and more advanced service to its clients. As a result, many light mobile virtual network operators are transitioning to an entire business model. 
Expanding distribution via branded resellers 
Branded resellers commonly have a famous brand and a compound retail infrastructure. They generally resell services on margins after negotiating prices with the MNO. The resellers manage their marketing processes and sales, which differ in brand identity, value, and pricing. A branded reseller put forward many distribution channels and an existing client base by which they can increase its sales. It is the simplest MVNO model and requires lesser investment, which expands its adoption by the MNO. In addition, the resellers repackage the existing telecom services, which help in reducing time for the mobile virtual network operators market.
Telecom industry is flourishing around the world
The mobile virtual network operator's market in the USA is observing a robust expansion with the growth of the telecom industry in the region, while Mexico is leading the regional business space. With a population of 129 million people in Mexico (as of May 2021), around 87 million are unique mobile subscribers with a strong mobile service ecosystem consisting of approximately 31 MVNOs. 
The ongoing penetration of smartphones and increasing demand for affordable telecom services are the key factors that strongly influence the mobile virtual network operator's market expansion. In addition, increasing government initiatives and technological advances introduced by market players are further invigorating by the industry landscape. 
Artificial Intelligence and analytics in the telecom industry
The applications of AI and predictive analytics in the telecommunications industry are limitless. Today, digital transformation is a major priority for any organization; combining artificial Intelligence and analytics will help companies achieve high performance while adding the uniqueness required competing in a competitive market. The expansion of virtual networks will assist the Government of India in addressing connectivity challenges in rural areas and moving closer to its goal of Digital India.
TechNote: A mobile virtual network operator (MVNO) is a wireless communications
services provider that does not own the wireless network infrastructure over which it
provides services to its customers. An MVNO enters into a business agreement with
mobile network operator to obtain bulk access to network services at wholesale rates,
then sets retail prices independently. (Wikipedia)