In 2017, the global mobile virtual network operator (MVNO) market was valued at $54,1-billion.
According to Market Watch, it’s expected to register a compound annual growth rate of 8,8% from 2018 to 2023.
Even in South Africa’s consolidating economy this is fertile ground.
Local MVNO enabler, MVN-X, is geared for growth in 2020 off the back of more than 50% year-on-year growth 2018/ 2019, and the company is showing no signs of slowing down within the flourishing telco sector.
An MVNO (mobile virtual network operator) is a wireless or virtual communications service 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 a mobile network operator to obtain bulk access to network services at wholesale rates, then sets competitive retail prices independently, while offering a bespoke and tailored value proposition to its customer base.
Ultimately, the MVNO can be positioned to disrupt the market by growing their customer base and adding value to the traditional market through enhanced service offerings and meeting their customers’ needs with more affordable and relevant products.
An MVNE (mobile virtual network enabler) provides network infrastructure and related services, such as business systems and planning, administration and operations support processes to MVNOs.
Founded in 2012 and a subsidiary business of the Ignition Group, MVN-X is an end-to-end MVNE which provides turn-key services to MVNOs.
2019 was an exceptional year for the company, which grew from 275 000 to 450 000 active subscribers. CEO Valde Ferradaz says: “The market is in a growth state and, with our new systems in place, we are expecting further growth to circa 800 000 subscribers in 2020 and anticipate reaching more than 1-million active subscribers by end 2021.”
MVN-X has partnered with Cerillion, and is implementing a convergent Tier 1 charging system that will allow the customer to go to market quicker and differentiate themselves through product innovation and customised value propositions. Its turnkey service offers would-be MVNOs consultation on feasibility, financial modelling, business planning, product development, enablement and provisioning. It can also assist with the acquisition of new customers.
The company already supports MVNOs including Standard Bank Mobile, Mr Price Mobile, Clientele Life, it own MVNO me&you mobile and more.
Ferradaz adds the company plans to expand into Africa in the next two to three years.