1. 1. Changing MVNO Business Models When you look at how business models are evolving for MVNOs, it helps to look at what is changing with their carrier partners. That is the advice from Peter Jarich, vice president of consumer and infrastructure for Current Analysis, who notes that what he is seeing on the carrier side is a focus on device financing, getting subsidies off the books, network quality, and pushing prepaid in a direction that makes it more affordable. These changes put pressure on MVNOs in terms of how they target their market segments and how they structure their service offerings. While certain technology advancements show great promise in delivering network efficiencies and cost savings, they arent the types of advancements that might allow an MVNO any type of technology differentiation, Jarich notes. All those things MVNOs have thought about in the past, things like prepaid, or targeting lower cost services, are kind of going away. At the same time the carriers are improving network quality and focusing on it. So it wont be as big of a difference going forward. Which means that MVNOs have to think about where they can differentiate, he says. Where MVNOs still have the edge is in their nimbleness to seize opportunities that the carriers cant. They can target certain constituencies, or market segments, and build communities of common interests among their customer bases. They can also get more creative in their billing relationships with customers. For instance, an MVNO might give away the first 5 GB of data for free each month, and bill only for what customers use beyond that. Or the first 10 texts every day are free. Or they might work with content providers so that their customers could visit certain sponsored websites free of any usage charges, only being charged for visits elsewhere. For MVNOs, its also a matter of developing and offering additional value-added services that customers are willing to pay for. With the playing field leveling between MVNOs and carriers, this could be the differentiation that wins, and keeps, customers. The more an MVNO is able to leverage unique agreements with partners and enablers, the more it can stand out in the market. Jarich adds that the carriers arent being particularly proactive at pricing or bundling content at this time, and that could spell opportunities for MVNOs. These opportunities, he cautions, may not be there forever, but at least there is a window right now. Its up to MVNOs to watch for the opportunities that arise and also create new ones of their own. By being alert to the market and moving with it ahead of it wherever possible and being creative, they can uncover and exploit those opportunities. For more information, visit wholesale.Sprint.com 2015 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization. Video also available at youtu.be/3IxwEZDFV-I