Starting an MVNO

[azdaboss]

Hi guys,

Does anybody have any experience in starting an MVNO (Mobile Virtual Network Operator)?

- What are the expected costs?
- How hard is it to get into the market?
- What kind of things would you need?
- How could you get started?

Any help/info appreciated.

 

[lr89]

Hi,
one of the things that you will need is a system for telecom billing. FTS for example has an excellent MVNO system.
good luck!

 

[cjd]

It's difficult and very expensive and if you need to ask how to do it, you can't.

 

[DesignerDrawings]

It's difficult and very expensive and if you need to ask how to do it, you can't.

Well you just took the lollipop from his hand and smashed it with your foot

 

[british steve]

We are just in the process of going through this at the moment; unfortunately I can't give you too much detail as we are under a very, very strict Non Discloser Agreement.

We looked at working with several networks including 3, Orange and Vodafone. Unless you have a proven route to market none of the networks will deal with you direct, the networks direct will be looking for a minimum of 60 - 75,000 customer sign up's per year, if you are unable to guarantee this number of sign up's they will make you go through an airtime aggregator. In order to deal direct we have had to commit to a minimum of 30,000 customers signups in year one and well over double that in year two and thereafter with some pretty stiff penalties if targets are missed.

We have teamed up with one of the networks mentioned directly. The basic cost of setting up as an MVNO is around £320K; sim cards cost around £1.20 each and there are a number of on-going costs totalling around 5k per month. Depending on your companies credit rating the network may ask you for a deposit, this could be as little as 100k to as much as 800k. On top of that you have marketing and customer acquisition costs, billing and direct debit collection costs. Remember you will not have subsidised handsets from the networks either so unless you will be operating a sim only MVNO you will have to buy these in and pay for them upfront!

So far we have spent around 6 months working on this and expect it to be another 4 months before we go live.

If you choose to go through an aggregator your set-up costs will be reduced to less than 100k and depending on who you partner with you could be up and running in less than 12 weeks. An aggregator will still expect you to have a route to market and will be looking for you to sign up a minimum number of customers each year but this will be much lower than dealing directly at network level. We looked at a number of aggregators and were close to signing up with a company called Transatel (www.transatel.com) when one of the networks approached us directly and asked to work with us

Setting up an MVNO is not easy; I have had many a sleepless night with all the paperwork involved. Depending on the rates you manage to get you will need around 20,000 customers to break even.


Should you choose to go ahead I wish you all the luck in the World because you will need it!

 

[cjd]

Well you just took the lollipop from his hand and smashed it with your foot

I don't expect any thanks for it....

It's one of the many ways to lose a lot of money quickly in telecoms - It's always worth reminding yourself that everyone that wants a mobile phone already has two.

 

[british steve]

I don't expect any thanks for it....

It's one of the many ways to lose a lot of money quickly in telecoms - It's always worth reminding yourself that everyone that wants a mobile phone already has two.

And almost everyone who has Voip has a phone line!

 

[sejal545]

hi are you selling mvno please get in touch with mw thanks call 07872962309

 

[sejal545]

you need minimum of 1 million pounds payas you go only if you are going with vodafone
with post paid you need lot more if you are providing handset
call if you need me 07872962309 danny

 

[british steve]

hi are you selling mvno please get in touch with mw thanks call 07872962309

Call X-Mobility. They will help set you up for around 15K Tel: +44191 229 8851

 

[Cornish Steve]

I know a couple of former CEOs of MVNOs. It's a difficult business, and you need a lot of upfront funding. It's instructive to consider many of the MVNOs that have failed big-time in the US - including ESPN and Disney. They really felt they could leverage their established brand, but it didn't pan out. Others believed they could reach a particular market, e.g., teens, but just couldn't compete with the established companies. Very few have been successful, and it's not just the difficulty of winning a loyal customer base that lets them down; it's also the cost of purchasing, installing, and managing a support infrastructure. One of the big VoIP companies in the US went under because, in part, they couldn't get accurate bills out to their customers in a timely manner.

Sorry. Just spotted that this thread is almost three months old, but hopefully the comments are still useful.

 

[cjd]

There are many problems with mvnos, not least of which is that the wholesalers are an oligopoly that are also retailers in direct competition with you but also because the market is super-saturated - everyone who wants a mobile already has at least two.

I suppose it must be possible to make a go of it but it's a tough old game, probably impossible if you don't already have a directly relevant market to sell into.

 

[sejal545]

Hi again
it is me danny
please can you help i cant get any body for 10k or 15 k for mvno
even gamma, transtel, x mobility , aql, orange, tmobile,3g

i want to become mvno for uk
and may be expand to europe if it works
please if you can provide me a mobile number we can discuss in more details or you can call 07872962309 thanks

 

[cjd]

Of course you can't. Think yourself lucky.

 

[sejal545]

can you help
i am thinking about to sign up with transatel (orange network )

is there any better deal then transatel
please call me or email me thanks
[email protected]
mobile 07872962309

thnaks
regards danny