MDS Template - Prepaid MVNO

Market Landscape
OPPORTUNITY AND RISK
Interest in the Mobile Virtual Network Operator (MVNO)
model has fluctuated many times over the years but has
witnessed a recent resurgence of interest – an interest that is
expected to deepen as more and more organisations look to
add Telecoms and/or Cloud computing services to their
portfolios. Of the many challenges/opportunities that arise
with this model, the following have particular financial and
operational relevance for the MVNO.
Competition: De-regulated markets are typically saturated
and hyper-competitive. To build significant market share,
MVNOs must strive to differentiate their offerings through
creative propositions, careful targeting of market segments,
and the adoption of a strong customer care ethos.
Business Model: With traditional mobile voice and messaging
revenues in decline there is an opportunity for MVNOs to
develop convergent market offerings that, through strategic
commercial partnerships, combine mobility with Cloud
computing and Over the Top services. In a multi-faceted
business model that combines Telecoms and IT services, there
is a need for deeper granularity in rating and billing, such as
linking price plans, quality of service, and greater assurance of
the overall customer experience through integrated policy
management and data analytics.
Cost-efficiency and Control: Average Revenue per User
(ARPU) is still used as a key performance indicator but the true
measure of business performance is profitability (EBITDA) and
free cash flow. In a challenging economic climate, an MVNO
must effectively manage supplier costs and optimise
operational cost-efficiency such that it can present
competitive market propositions without prompting a ‘least
cost’ price war, something that can devalue brand credibility
and introduce financial risk. As such, an MVNO could look to
outsource its Business Support Systems (BSS) operations to
leverage economies of scale and cost efficiencies though not
at the risk of sacrificing operational control.
DELIVERING AGAINST REQUIREMENTS
Having briefly outlined the market context for MVNO
operations, this paper will now focus on the specifics of
service delivery across the order-to-cash-to-care customer
lifecycle. MDS has long been a specialist in service delivery
enablement for MVNOs and the following is a detailed, though
not exhaustive, introduction to the systems, partners, and
business processes involved in running an efficient and
profitable mobile communications business.
MDS Managed BSS Credentials
MDS is a trusted provider of hosted managed services that has
built a solid reputation in the Communications industry over
many years, consistently delivering on time and to budget.
MDS provides, manages and maintains critical Business
Support Systems for service providers globally, offering an
extensive service wrap that includes:
• Scalable, accurate and proven integrated Telecoms billing
and customer management software for convergent
communications and Cloud computing services
• Deep domain expertise and unique capabilities that power
a dedicated 24/7 managed service
• Comprehensive suite of service levels that drive all aspects
of service delivery
• Cost-efficient and assured infrastructure management
• Analytic monitoring and validation services for complete
business control across infrastructure, applications and
processes.
Through its award-winning Customer Management Platform
(CMP), MDS managed services offers MVNOs a reduced cost,
lower risk alternative to in-house customer management,
without the need to sacrifice control and at a much lower
total cost of ownership. The service offers the flexibility to
manage specific processes, functions, systems, and third-party
services that can free-up key internal resource to focus on
growth and innovation.
Ecosystem of Mobile Postpaid
In comparison with prepaid offerings, a contract-based mobile
offering involves a number of additional service elements,
typically involving third party service providers (TPSPs) such as
credit reference agencies and print bureaus. The more
common elements are captured in figure 1 overleaf and many
of those areas are subsequently detailed in this paper,
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