The NCC’s commissioner Prof Umar Danbatta, has been reported as saying the licences, that each run for a period of ten years, are a crucial part of keeping up to date with industry developments and support ambition to roll out 5G, as well as introduce more competition and opportunity to run telcos in the fixed, M2M, B2B and rural sectors. Wholesale is also seen as a means to help balance the revenue loss that incumbents have experienced as more OTT players take a share of the pie.

As you’d expect with an MVNO model, the new MVNOs will use the networks of the existing operators, namely MTN, Globacom, Airtel and 9mobile.

Challenge brings opportunity

The challenges with such a vast country both in terms of land mass and geography, in particular the challenges of supporting mobile in outlying areas, are significant. The scale of the customer numbers also adds a further dimension.

However, it’s my opinion that there are enormous opportunities too. In fact, we advised numerous potential MVNOs in the run up to the process and submitted a report to the commission summarising the scale of the market opportunities, and the conditions that create a buoyant sector.

Every MVNO will be different addressing these varied challenges, offering services to different segments and regions. Vertical markets will also be targets – oil, tourism, and agriculture all present options for specific propositions. These propositions will include the deployment of private networks at large campus-based operations such as ports through to eSIM for tourists, and IoT / M2M solutions for heavy industry and agriculture.

All the licence applicants had a choice about how they wanted to run their MVNO and the technical investment they were prepared to make. The tiered system of licensing reflects this.

Licence tiers:

The licences are divided into five tiers, each one defined by the services and technology set up of the MVNOs. The specific definitions from the regulator are as follows

Tier 1: An MVNO within this tier leverages on its ability to offer services to its customers without owning any switching or intelligent network infrastructure. They do not control any numbering resources. Responsibilities lie with the host Licensee to provide wholesale capacity to the V.O for delivery of its products and services.

Tier 2: An MVNO within this tier assumes more control of the value chain which allows it to significantly differentiate itself from its host. The VO does not have Core Switching and Interconnect capabilities but can set up its own Intelligent network (IN) to provide their own IN services to the customer. It can own more of the customer segment than Tier-1 operators with the capacity of establishing its own Home Subscriber Register or Authentication centre, Equipment Identity Register, and Home Location Register, if it desires to.

Tier 3: Within this tier, an operator relies on its technical and commercial prowess to launch and operate a full core network with switching and interconnect capabilities. The VO relies totally on its host to provide Radio Access capacity at wholesale to deliver its products and services to its customers. The MVNOO can engage in interconnect agreements with other network providers. Revenue generation stems from both outbound and inbound calls which gives it full control over its tariff structure.

Tier 4: The operator within this tier is responsible for aggregating and/or Enabling MVNO services within the market. It relies on a model in which it stands as a middleman between the MNO and multiple MVNOs. The aggregator is responsible for purchasing bulk capacity from a licensed network operator, and reselling it to multiple MVNOs, therefore streamlining the process of negotiating capacity agreements with said network operators. The aggregator is permitted to choose what level of the value chain it desires to aggregate.

Tier 5: Unified Virtual Operator. In the simplest terms, an MVNO within this tier can decide the level of service it desires to offer ranging from Tier – 1 to Tier – 4. This gives the MVNO freedom of choice to deploy its services the way it deems fit if it still has a valid license. They can engage in “Shared Rural Coverage Agreement” within underserved and unserved regions.

𝗧𝗵𝗲 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝗮𝘄𝗮𝗿𝗱𝗲𝗱 𝗠𝗩𝗡𝗢 𝗹𝗶𝗰𝗲𝗻𝘀𝗲 𝗶𝗻 𝗡𝗶𝗴𝗲𝗿𝗶𝗮

Tier 1

• Topit Virtual solutions Ltd

Tier 2 (Nine Companies)

• Routelink Integrated Systems Ltd
• Hazon Technologies Limited
• Asel Telecom Nigeria Limited
• Briclinks Africa Plc
• Pisi Mobile Services Limited
• Univasa Nigeria Limited
• Imose Technologies Limited
• Infratel Limited
• Telconix Networks Limited

Tier 3 (Seven companies)

• Amics Technologies Limited
• Zegtel Limited
• Telewyz Limited
• Siu Telecommunications Network
• Abrindex Nigeria Limited
• Metropolitan Consortium Nigeria Ltd
• IPNX Nigeria Limited

Tier 4 (Four companies)

• Imbil Telecoms Solutions Nig. Ltd
• Environmental Expressions Limited
• DMK Telecommunication Nig. Ltd
• Holla Tags Limited

Tier 5 (Ten companies)

• Systegra Technologies Limited
• Choffan Communications Limited
• Mab Consultant and Associates Ltd
• H & Y Business Global Limited
• Taima Technologies Ltd
• Global Communication Extension Services Ltd
• USK (S) Ventures International Ltd
• Paribas Communication Limited
• Fourth Industrial Skills Consult Limited
• Mobilise Communication Ltd

It’s very interesting to see that the majority of licensees have opted for the flexibility of the Tier 5 licence, or the opportunity afforded by a Tier 4 MVNA licence. With only four host networks and over 30 MVNOs to enable, it’s likely that those with an MVNA licence will be in strong position to enable on behalf of network operators keen to outsource the complexity of running multiple MVNO relationships.

It’s an extremely exciting time for this market, and there will be opportunities not just for the MVNOs, but also for parallel industries, including data insight, billing, marketing, and mobile application providers.

If you are one of the MVNOs licensees that wants to out compete the market from day one, or you’d like to understand how your application business can get in on the act, then get in touch to find out how Graystone Strategy’s MVNO launch expertise can help you achieve success. Our blog on “The five MUST DO actions Nigeria’s new MVNO licensees should take for a successful launch” must do to deliver a successful go to market launch is useful further reading.

The post Nigeria’s newest mobile licensees have a big opportunity to change the telecoms market appeared first on Graystone Strategy.

However, one stone we’ve yet to turn over in detail is that of the opportunity in B2B and why some MVNOs could diversify and capitalise on the solutions 5G will enable.

It’s easy to think that when there are already brands dominating the B2B space there’s no room for new entrants, or to suppose that a brand won’t stretch, especially if they significantly under index or have a very marginal representative market share.

Gartner predicts that by the end 2021 there will be 25 billion connected things in use. And with the pandemic instigating a wave of everything from connected living and home working to IoT innovation to address urgent social and healthcare needs, I say that’s perfect conditions for growth and innovation for MVNOs.

Historically MNO activity has been about offering a great service and price for business communications, with the level of ‘managed service’ options increasing based on the size of the organisation.

Traditionally, B2B has lagged behind the consumer segment in terms of innovation and pricing. More often than not this has come down to complexity.

However, it’s surprising how even the most paired back of offers could cut through if executed well. Some small boutique telecoms and IT suppliers are proving that you can successfully compete against the big boys because they are taking the time to develop exciting and targeted bespoke services. They are of course more agile and it translates into focused and targeted marketing strategies.

5G steps this all up a gear and presents new options for product and service innovation – everything from smart cities delivering intelligent traffic routing, through saving water with sensors on water pipes to robots picking our defected product on manufacturing lines.

And that’s only part of the story. We’ll see more and more fixed and mobile convergence in the coming months. It’s now a necessity to manage teams working from home, or more erratic hours in an office.

Network virtualisation and cloud technologies are leading the way in terms of creating fully integrated fixed, mobile and IT solutions to support this. Put a customer service wrap around it, one that solves the pain many businesses face, and you’re well on the way to a successful and differentiated strategy.

And that’s the key – anyone can integrate services, but not everyone can deliver a standard of customer service that helps its customers grow, innovate and compete.

Certain segments will be facing different pressures, be that a buoyant switching market as we see in the insurance and utility sector, regulation that drives change in the financial services industry, or the adoption of IoT in the manufacturing and logistics sector.

Understanding these operational opportunities and difficulties is where the opportunity lies. But the real winners will be those who don’t just solve the problems but do it in a way no one else can. Skill will be critical. Me too won’t wash. Companies need to tap into the ‘extraordinary’ from their service providers so that they can achieve the extraordinary. And they are willing to pay for it if the ROI is proven. Tap into that and you have boundless growth potential.

If you’d like to discuss how your business can develop marketing strategies that capitalise on the growing B2B market, then contact Graystone Strategy today.

The post 5G trend watch – Why the B2B market is ripe for MVNOs appeared first on Graystone Strategy.

But joking aside, the agenda is an indicator as to how much the MVNO market has matured and how bright its future is. It all underlines how exciting the industry is and if I’m honest why I love it so much. The themes associated to these topics, especially those related to new technologies, reflect changing times.

No longer are we fixated on the opportunities for B2C that migrant markets, supermarkets and multi-play bring – though they do of course still bring a multitude of opportunities – instead attention is moving at speed to B2Band in particular IoT.

Gartner predicts some 8.4 billion IoT devices will be in existence come 2020. It’s driven by everything from smart cities to our need to solve major agricultural problems like feeding the world’s population more efficiently.

Those extraordinary predictions from Gartner are entirely possible when you look at the amount of investment going in. You just need to look at Vodafone’s ambition to double its narrowband IoT footprint in Europe by 2019 to see how committed the big boys are.

With investment comes opportunity for growth and innovation. Small IoT specialists are springing up everywhere and fuelling the new ecosystem.

This all plays into the hands of MVNOs as nothing is possible without connectivity. And as mobile is at the forefront of this emerging world, so MVNOs can take full advantage in verticals that need mobile connectivity.

How so? Well, it’s due to the resilience and flexibility of the MVNO model.

Fact 1, MVNOs heritage of problem solving means that they can now deliver more rapidly:Typically MVNOs have had to work around network connectivity complexity. They’ve done this by developing in house systems for connecting services and SIMs. It’s made them faster and more flexible than the MNOs and it’s given them an added capability they can trade on.

This is especially true for full MVNOs, which have benefited from the flexibility that owning the HLR/HSS, IMSI and number ranges provides – by using multi IMSI solutions MVNOs can build a large geographical footprint and provide a seamless transition across borders.

Cubic Telecom is a great example of this approach to sweating the assets. Originally a consumer roaming proposition it now has over 200 3G roaming and 60 LTE (4G) agreements in place. This is one of the reasons why Volkswagon Audi Group has made investments in Cubic. How else would 50,000 new connected vehicles roll off production each month?

Fact 2, the mindset is in IoT gear:The MVNO mindset is more entrepreneurial than the big networks’. An MVNO isn’t preoccupied with plastering its consumer brand all over the customer offer, nor do they entertain complex governance or have intragroup stakeholders to appease. This makes them inherently agile and quick to respond to the market. It puts them in a position whereby they can roll out a full service before you can say internet of things.

Fact 3, Enterprises like MVNOs:The companies buying IoT services like challengers. I’ve seen it with my own eyes. They get the model, they get the agility, and they want the benefits it brings like yesterday.

From their perspective a challenger MVNO brand is a perfect partner so long as they have a quality network behind them. Buyers are happy to trade speed to market and first mover advantage against partnering with a mobile network. And they get this because the challengers have more agile software development – the MNOs are improving but they still have a long way to go in terms of agile mindset and delivery.

That’s why I think if Ofcom’s predictions of 160million IoT connections in the UK by 2024 are to play out then it’s going to take MNVO / enterprise partnerships to make it happen.

And it’s why you can expect to hear everyone from platform vendors, analytics and data companies to MNVEs, Os and Xs talking it up at MVNO Europe. I know it’s why I will be there, never mind the chance of a full house in Buzz word bingo…

The post Three facts that make MVNOs right for IoT – a look ahead to MVNO Europe (and a game of Buzz word Bingo) appeared first on Graystone Strategy.