MVNO SERVICES

FOR ACCELERATED
TIME TO VALUE
FOR OPERATORS OR BRANDS PLANNING TO LAUNCH
AN MVNO BUSINESS, OR SCALE-UP AN EXISTING
OPERATION,MDS PROVIDES AN EXPERIENCED
CONSULTATIVE APPROACHTHAT REDUCES RISK, AND
ACCELERATES TIME TO VALUE
INTRODUCTION
For established brands and operators looking to enter or
scale within the complex IT and communications industry
as a Mobile Virtual Network Operator (MVNO), they must
first understand how to mitigate risk to maximise the
opportunity. Working in partnership with an experienced
Virtual Network Enabler (VNE) platform provider can
greatly reduce this risk, remove complexity, speed time
to market and help secure returns.
MDS provides an VNE solution that helps organisations
bring to market new converged communications services
which embrace the MVNO opportunity. MDS offers a
unique combination of experience-based consulting
services and a proven end-to-end service enablement
solution, MDS Customer Management Platform, to help
exploit this market quickly, effectively and with reduced
risk.
MVNO MARKET OPPORTUNITIES
MVNOs offer mobile services without owning the complete
network infrastructure on which their voice and data
traffic is carried; this is leased from Mobile Network
Operators (MNOs).
While MVNOs can deliver a range of IT and telecoms
services, it’s on mobile services that the core of the
business will be built, and where significant revenues can
be generated.
ƒƒ For established retail brands, launching a mobile
service can strengthen customer loyalty and grow
sales.
ƒƒ For operators looking to mature and evolve their
MVNO services, replacing and updating legacy billing
and customer management systems becomes key in
order to have the flexibility to support new products
and services, and enhance the customer lifecycle.
Globally in 2013 there were more than 600 MVNOs
operated by 500 organisations, controlling approximately
2 per cent of the total 4.8bn mobile connections.
In mature and emerging markets MVNOs are exploiting
the opportunity to extend and strengthen an existing brand
or drive new business by targeting specific market
segments with compelling, tailored services.
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KEY SUCCESS FACTORS
For MVNOs there are many factors that determine the
success of the venture. While some factors such as a
shift in the economic climate are not within the control
of the MVNO, there are many fundamentals that are:
ƒƒ business plan – market opportunity, revenue
recasting, funding requirements
ƒƒ branding – aligned to target market, helping to
promote differentiation
ƒƒ go-to-market strategy – value proposition,
distribution channels
ƒƒ customer experience strategy – web self-service,
e-billing and social interaction
ƒƒ partner selection – stores and/or distribution
networks
ƒƒ existing and loyal customer base
ƒƒ management and operational team with hands-on
mobile experience
ƒƒ technology and services – appropriate to the go-
to-market plan, with a ‘single view’ approach to
customer care
ƒƒ e-commerce solution – with a web site to draw
potential customers.
MDS consultancy services can help MVNOs to address
these success factors and develop their business in
a way that keeps cost to serve low, and churn to a
minimum.
MVNO BUSINESS MODEL OPTIONS
Simply put, the closer an MVNO gets to the network
infrastructure, the more control the business will have
over its market offering; allowing a focus on
differentiation, segmentation and customer loyalty – see
Figure 1.
For the ‘Branded Reseller’ model, MVNO revenues are
calculated as a margin of the outbound traffic revenues
and in some cases a commission is paid for each new
acquisition. With the ‘Light MVNO’ model, the MVNO
collects outbound traffic revenues from the customer
and pays the appropriate wholesale amount to the
Network Operator (inbound traffic revenues accrue to
the Network Operator).
© 2014 MDS

Service
Network Platform Proposition Distribution
Branded
Reseller
LIght
MVNO
Full
MVNO
Owned/controlled by MVNO
Owned/controlled by Network Operator
Figure 1: MVNO Business Model Options
Even with the significant increase in operational cost and
complexity, many MVNOs are convinced that the risks of
moving to a ‘Full MVNO’ model are outweighed by the
benefits:
ƒƒ ownership of the subscriber’s mobile phone number
ƒƒ negotiation of own roaming rates
ƒƒ increased negotiating power
ƒƒ option to switch host MNO
ƒƒ collection of inbound termination rates
ƒƒ greater technical independence
ƒƒ access to network intelligence
ƒƒ ability to monitor data usage.
MVNO BUSINESS PLAN CONSIDERATIONS
There are potentially a large number of MVNOs looking
to launch at any one time. These range from charities
to huge brands. Around 20 per cent of these will have a
compelling business plan, making around half attractive
to an MNO because the cost of delivering and launching
the MVNO can only be recovered if the service delivers
large volumes of subscribers and/or significant ARPU.
This is particularly difficult for start-ups and niche
players.
MDS consultancy services can support putting together
a robust business plan, including a deep level of guidance
on technology, services requirements and costs. Even
where the potential MVNO has a strong brand and a
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Sales &
Branding
Operator
Customer
Ownership
MVNO
Customer
Ownership
loyal customer base, they will often lack the knowledge
and experience to define the appropriate technologies
and services that will drive their business, including the
fulfillment, billing and customer management functions.
For an MVNO, support and resource costs could be
classed as a ‘cost of sale’, in particular the engagement
of a specialist consultancy that can handle systems design
and customisation requirements. This cost is critical as
errors made in design, deployment or application
selection could jeopardise the MVNO business plan.
As illustrated in Figure 2, MNOs are known to invest
considerable time and resource in taking their MVNO
clients from initial discussion to network integration and
testing. By contrast an MVNO client engagement that
leverages the integrated MDS Customer Management
Platform and consultancy services can significantly
reduce the people/time investment required to launch an
MVNO.
MDS believes that costs can be further reduced through
the introduction of virtualisation that helps to transfer
additional costs out of the MVNO. This approach enables
MVNO clients to launch with a relatively low CAPEX
investment, lowering the total cost of ownership (TCO)
and overall investment risk.
© 2014 MDS
 MVNO Launch Activites
MNO Commercial Team
MNO Technical Team
Project Planning and Management
Testing – batching and delivering
Usage Detail Records (UDRs)
Reporting and Broadcadsting Key
Issues
TOTAL
Figure 2: Time and Resource Savings Achievable when using the MDS CMP for VNE Solutions
(NB. timings shown are approximate and will vary depending on the size/scale of the implementation).
NETWORK OPERATOR RELATIONS
The mobile and/or fixed Network Operator will take
responsibility for network elements, including network
management and delivery of voice and data services. MDS
can provide consultative support for MVNOs in the early
stage engagements with network operators.
MVNO PROPOSITION DEVELOPMENT
MDS can assist MVNOs with both the development of the
market propositions and the configuration of the price
plans on the appropriate systems. This will help safeguard
against invoice errors and minimise the potential for
revenue loss and/or high volumes of bill enquiry calls.
Our consultancy brings experience in the development of
market propositions for consumer and business
customers who have complex requirements, including
convergent services across multi-site enterprise
customers.
The MDS platform and service management supports the
rapid introduction of new price plans on behalf of the
MVNO, which can typically be achieved in five days or less.
PROVEN END-TO-END SERVICE DELIVERY ECOSYSTEM
As a proven VNE solution, MDS provides the hosted
infrastructure, integrated product technology, experienced
resource and the trusted service relationships which are
necessary across the customer billing and lifecycle
management value chain, and essential when launching
a new enterprise.
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Alternative MVNE Platfrom MDS Customer Management Platform
280 person hours, including travelling/ 280 person hours – commercial
meeting time and time spent element remains equivalent.
negotiating the contract wording.
1100 person hours defining and 1023 person hours defining and
planning the network interface. planning the network interface.
2500 person hours customising 0 person hours customising
the provisioning platform. the provisioning platform.
80 person hours. 40 person hours.
200 hours. 80 hours.
200 hours. 12 hours.
4369 hours (581 days). 1435 hours (191 days).
MDS consultancy provides detailed solution definition and
design that includes MDS Business and Operational
Support System (B/OSS) technologies, managed IT
operations, and partner services. At the core of the
design is the drive to alleviate the cost and complexities
associated with launching as an MVNO, without sacrificing
the required flexibility, scalability and robustness.
MDS Customer Management Platform for VNE
The MDS Customer Management Platform offers an
integrated end-to-end service delivery solution, that
enables MVNO organisations to outsource all B/OSS and
partner services, helping reduce risk and time to market –
see Figure 3.
In developing our VNE offering, we’ve addressed all
the major elements that should be considered by an
MVNO in offering convergent IT, mobility and fixed/IP
communications services. This includes fulfilment, real-
time convergent billing, business analytics and customer
management.
We’ve also established a network of partners to deliver a
comprehensive enablement service based on a repeatable
implementation model, allowing MVNOs to benefit from
economies of scale.
© 2014 MDS
 MDS TECHNOLOGY & SERVICE CAPABILITIES

Customer Management Interface

Payment
Customer Self Service E-Billing & Gateway
Management Subscriber Integrated Analytics
Management Workflow
Credit Services

Fulfilment Real Time Billing Business Print Bureau

Environment Analytics
Product Business
Online Charging Unified Rating Supplier &
Catalogue Intelligence
Service Partner
Enablement Order Policy Invoice
Revenue Relationship
Assurance & Management
Management Management Production
Fraud Analytics

Real-time Credit Payment Online Business Taxation

Provisioning
Control Management Analytics

Content
Providers

Managed Hosting & Professional Application Service

Mobile / Fixed
Service Private Cloud Services Management Assurance Network

Figure 3: End-To-End Service Delivery Ecosystem

Assured Managed IT Operations CUSTOMER REFERENCE – BT RETAIL MVNO

MDS provides the experience, people, processes and
services to run complex managed IT operations that help
reduce complexity and investment.

MDS implements, manages and maintains the MDS

Customer Management Platform for VNE solutions that
are critical to MVNO clients for rapid and sustained
business growth. MDS’ flexible and assured managed IT
service delivers financial and operational advantages to
help speed time-to-market, reduce capital expenditure,
improve cost-efficiency and enhance the customer
experience.
With MDS, MVNO clients can focus on building their core
business or scaling-up existing operations.
BT chose MDS to support its re-entry to the UK mobile
market as an MVNO. The company sought a partner that
could provide a complete MVNO solution and demonstrate
industry expertise. MDS allocated a dedicated team to
BT Mobile, along with providing established interfaces
connecting to key third-party services including MNO, a
fulfillment house, credit agency, print bureau and payment
gateway.
Establishing and managing connectivity to third-party
suppliers enables BT to focus on its core business,
without having to be concerned with infrastructure issues
and without compromising its high standards of customer
service.

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ABOUT MDS
MDS is a leading provider of convergent billing and customer management solutions, enabling service providers to
monetise and bill any product and service rapidly and accurately. Our managed service solutions support customers
and deliver a low total cost of ownership, with a single view platform that enhances the customer experience.

Headquartered in the UK, MDS managed service solutions support customers across Europe and North America,
including ACN, BT, eircom Business, Gogo, TalkTalk Business and Telefónica UK.

FAST, FLEXIBLE TIME TO MARKET ADVANCED ANALYTIC INSIGHTS

ƒƒ Integrated convergent billing and
customer management – consumer,
business and government
ƒƒ Real-time rating, charging and
billing - support for complex account
structures and price plans
ƒƒ Single bill and view of the customer
and service
ƒƒ Rapid launch and new product
introduction – days
LOW TOTAL COST OF OWNERSHIP
ƒƒ Lower cost – without the need to
sacrifice control of customer data
ƒƒ Productivity gains – reassign internal
IT resource to innovation programmes
ƒƒ Low risk - pay-as-you-grow
commercial options
ƒƒ Embedded revenue assurance and
fraud analytics
ƒƒ Holistic business intelligence from a
single database, including 50 standard
reports
ƒƒ Online business analytics – executive
dashboards
ASSURED MANAGED SERVICES
OPERATIONS
ƒƒ ITIL-based proven service with
consistent delivery
ƒƒ 24 x 7, 365 service management
ƒƒ 50 assured SLAs monitor 130
pre-defined business processes
ƒƒ 120 assurance points – infrastructure,
applications and processes with
optimised performance

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© 2014 MDS