iMVNOx founder and director Frankie Spagnolo has warned virtual networks that they must change or risk disappearing as the industry continues to change.
Spagnolo has hailed 2016 as ‘the Year of the Value Evolution’ explaining that EU roaming regulations and the expansion of OTT services will push MVNO’s to discover new revenue streams.
‘We know for a fact that the old model for MVNOs is broken. MNOs are scared of losing control and lack a true ability to successfully implement lean enablement technologies or rapid go-to market strategies, being bound by the one common curse of all mammoth corporations, inefficiency. Meanwhile, MVNOs business models are continually undermined by rigid wholesale policies and other common challenges from host MNOs who are reluctant ‘partners’, at best.
‘The EU roaming regulations and OTT solutions have drastically reduced margins over the past few years and the commercial pressure around consolidation and bundled plays that will be a focus in 2016, are going to even further alter all three markets. The logic and impact of services like H3G’s “Roam like Home" will inevitably force the carriers to provide access to converged technologies and accept the reality of very low wholesale rates in both voice and data.’
Change or die
Spagnolo called on those within the MVNO community to use 2016 to demonstrate the ways in which they can deliver real value to the consumer, but she’s brutal in her assessment of the critical nature of their predicament, as she explained to Mobile: ‘This is bottom line, change or die. Indeed, we predict that 2016 will be the Year of the Value Evolution. Change is a necessary part of evolution and obviously the industry is evolving, with or without MVNOs.
‘However, if we are to make it through the rough times ahead, it will be because we worked together to drive the right change and position MVNOs as a positive force. Showcasing our Value to both regulators and operators. Value that is innate to the Virtual ecosystem.’
‘We at the iMVNOx, believe that the virtual layer of the mobile ecosystem is perfectly positioned to optimize network investments, monetize the converging communication industries, and provide a stable foundation against the dangerous financial future facing the carriers and the untold fallout from the coming of disruptive technologies yet, unknown. Enabling solutions that continue to support market growth and drive industry innovation, while protecting consumer interests and keep pricing low.’