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A Wi-Fi-first Strategy for MVNO Revenue Growth: How to Improve Margins Despite Rising Data Usage

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Mobile data traffic is soaring. According to the Cisco VNI, we’ve seen 50 percent growth over the course of 2016 alone, leading to forecasts that data traffic will reach (and possibly exceed) 30.6 exabytes per month by the year 2020. That’s incredible, bespeaking an insatiable consumer appetite for mobile data services. Less obviously, those numbers also hint at massive, downward price pressures, owing to a saturation of mobile actors in the market.

What do those forces mean for MVNOs, in particular? MVNO subscribers and prospective subscribers will continue to expect plan prices to decrease over time, while also demanding steady improvements in mobile network speeds and performance. How can MVNO’s respond to these customer expectations in a transnational regulatory climate characterized by degrading ARPU?

The answer is not that easy. And compounding the issue, MNOs, facing steady churn rates and increased competition, are themselves becoming more aggressive in their attempts to capture and retain customers. They’ve been trying to coax consumers into multiple-play packages. MNOs are also seeing a significant shift in their traffic, from voice to data, which is taxing already strained mobile networks. This shift will potentially lessen an MNO’s desire to support MVNOs, particularly if the latter is competing for the same customer base.

Moreover, the MVNO model is based on exploiting mobile networks. Luckily, pricey mobile networks are not the only options for connectivity. Even though mobile networks are being continuously upgraded, in many places, Wi-Fi now offers premium connectivity and performance. And most importantly, Wi-Fi is not a space that is being crowded out by competitor MNOs and MVNOs, at least not yet.

This paper explores why making Wi-Fi connections the first choice for customer connectivity can help an MVNO maintain profitability, by helping to accomplish multiple strategic priorities. Read on learn how a Wi-Fi-first strategy will drive MVNO revenue growth, by improving margins despite rising data use.

Here’s what’s included in the paper:

  • A victim of its own success
  • Increasing competition comes from everywhere
  • Rising mobile data use
  • The benefit of a Wi-Fi first approach
  • Other reasons to go Wi-Fi first
  • Wi-Fi partner considerations
  • Best available connections
  • Conclusion
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