One of the biggest challenges for any MVNO or MNO is how to ensure that both parties are receiving fair value in the wholesale agreements.
When contracts are initially developed there is a good chance that the MVNO will have undertaken a competitive RFP process to choose the right MNO (Mobile network operator) partner. Selection is usually based on a balance of pricing, capability, services offers and more nuanced factors relevant to the segment.
But the telecoms market is fast moving and highly competitive, so how do you ensure that the pricing agreed in your wholesale contract allows continued success even if the retail market changes significantly?
In our experience the best way to achieve this is to work with you host operator and agree certain trigger points that allow you to benchmark your wholesale rates against the market.
Our MVNO experts not only have experience in negotiating these types of clauses in wholesale contracts but also in delivering the operational mechanic that provides the insight for a full and fact-lead discussion about market rates.
We have built comprehensive analytical models that review customer segment, market segment and use a ‘basket analysis” methodology to identify where margin has been lost and therefore where a market correction may be required to continue growth.
The same models can also be used to help define target wholesale rates if you are entering into a renegotiation of your current contracts or considering an MVNO services RFP.
To find out more about the process and how we have helped clients get in touch.
