.png)
Scroll to top
When launching a mobile services business, it is important to understand what equipment, software, and systems you will need to operate successfully.
The answer depends on your chosen operator model, so let’s start there.
In Australia there are three broad types of mobile operator: Mobile Network Operators (MNOs), Mobile Virtual Network Operators (MVNOs) and Branded Resellers / Dealers.
Below is a simple breakdown of the different operator types, and their responsibilities.
.png)
MNOs, MVNOs and Branded Resellers all provide mobile services to their customers. However, there are some key differences between them.
MNOs hold mobile spectrum licenses and operate the infrastructure required for mobile communication services. Australia has three MNOs – Telstra, Optus and Vodafone.
Building a mobile network is no small feat. It requires planning and building at national scale. 4G and 5G towers, base stations, and geo-redundant data centers, as well as high-speed fiber backhaul to connect all of the towers to the core network.
Unsurprisingly, the cost of building and maintaining this mobile infrastructure is huge. (Especially in a large landmass like Australia). The 5G spectrum license alone can run into the tens – or hundreds – of millions of dollars.
Given these costs, many mobile operators choose an alternative path, opting to launch an MVNO.
The key difference between MNOs and MVNOs is technical. MVNOs essentially ‘piggyback’ on a chosen mobile network.
MVNOs lease network capacity from MNOs and provide mobile services to their customers without owning the mobile network infrastructure. This asset-light model allows MVNOs to deliver services at lower cost – which can be an important advantage.
However, an MNO has the authority to decide which MVNOs can use its network – and may place limits on MVNO coverage and features. For example, the Telstra (retail) network is larger and faster (among other differences) compared to the Telstra Wholesale network which it provides to MVNOs.
The other important difference is strategy. MNOs are mass-market providers, and typically leverage their brand strength to charge premium prices. On the other hand, MNOs target niche markets – serving a sub-section of the market (e.g. seniors) with tailored plans and lower prices.
Operationally, MVNOs need to invest in software and systems to manage day-to-day activities such as SIM provisioning, device leasing, subscription billing, customer support, sales and marketing.
While it is possible to create bespoke systems for this purpose, most providers purchase MVNO enablement software for an all-inclusive, turnkey solution.
A branded reseller (sometimes called a ‘dealer’) provides mobile services under its own brand, or co-branded with their wholesale supplier.
This operator type is fastest and easiest to establish as it does not require any equipment or custom software. The focus of a branded reseller is selling mobile services. Billing and customer management are handled by the wholesale supplier.
The downside of the branded reseller model is that resellers have no scope to tailor their plans. By contrast, MVNOs can provide customers with more competitive pricing and unique services.
Your choice of mobile operator model will depend on your near-term ambitions. Ask yourself: How many mobile subscribers do you expect to have in a year?
For startups and small providers, the Branded Reseller option may be the best path to market. This model lets you focus on sales and marketing, without the complexity of service management and billing. So you can start building revenue today, and then ‘level up’ to a branded MVNO at a later date.
Telcoinabox works with several national providers who support Branded Reseller arrangements. Contact us if you would like a referral.
The branded MVNO model works well for established telecoms and ISPs, retail brands (grocery chains, utility companies) and lifestyle communities (e.g. seniors, ethnic groups, social causes).
The MVNO model is ideal for non-telecom companies because it requires only software (no network infrastructure). You can focus on customer service, monthly billing and sales. If you have an existing customer database, marketing your mobile services will be efficient and low cost.
Telcoinabox provides both the mobile network connectivity and the back-office platform needed to launch a successful MVNO. Contact us for a free demo of our MVNO software platform.
Only a handful of Australian providers have surpassed one million mobile subscribers. If you realistically believe you can reach this goal, you may have the business case to connect directly to your chosen mobile network partner (or even build your own MNO).
To get you up and running sooner, Telcoinabox can provide you with a forked version of our MVNO platform, customised to your business model. Our MVNO enablement capabilities already sit behind several large Australian providers. Contact us for more information on MVNO enablement.
The Telcoinabox platform is a proven backbone for mobile operators of all sizes. Gain access to current features and wholesale pricing, with the assurance of white label branding and turnkey deployment.
Our platform enables end-to-end service management, from sign-up and SIM activation to billing and payment. Little wonder Telcoinabox is the MVNO partner of choice for over 400 Australian telecom and MSP businesses.
