By Dennis Jones
MVNOs are facing a double whammy. First off, unlimited data plans are making a comeback, which is great for your subscribers, but not necessarily great for your bottom line. The next is the arrival of Roam Like Home, the EU’s ban on roaming fees, which is again great for subscribers, but not necessarily great for your bottom line, making an MVNO Roam Like Home strategy more imperative than ever.
Why is that, what’s the over-mastering need for an MVNO Roam Like Home strategy? Well, on average, MVNO wholesale costs typically account for half of operational costs, sometimes as high as two thirds. Any chance of surviving in the post-roaming ban era depends on optimizing these costs, especially as an end to retail roaming surcharges doesn’t mean an equivalent reduction in wholesale roaming fees, a bitter point of contention for most MVNOs.
So how do you optimize your operational costs? First and foremost, it’s imperative that you understand your subscribers’ usage patterns, both onnet and offnet. That means you need to invest in mobile device analytics and big data, which can help optimize you wholesale costs – up to as much as seven to ten percent.
The next step is crucial. You have to reduce your network costs by offloading cellular traffic to Wi-Fi, especially global Wi-Fi for your international roaming subscribers. The world’s largest Wi-Fi network, with more than 20 million hotspots in Europe alone, iPass allows you to implement a Wi-Fi-first offload solution, whether your subscribers are on your home network or roaming offnet.
When it comes down to it, iPass should be a crucial plank of your MVNO Roam Like Home strategy, because we allow you to reduce wholesale costs and regain operational margin. In addition, our unlimited pricing structure provides a predictable, fixed, per-user cost, based on unlimited data capacity and unlimited, high-quality connection time. In other words, you provide your subscribers a great experience with no risk associated with high-capacity usage.