The art of the wholesale deal: 5 things Every MVNO must do
A deep dive into the stats on global MVNOs surfaces just how active the market is. In fact, I think it’s the most active I’ve ever known it. In terms of size alone, there are more than 2,100 MVNOs worldwide. Together they serve around 5% of the world's 5.8 billion mobile subscriptions. In the last ten years, the sector has grown by 60%, which equates to around 800 new MVNO launches. By my calculations, that results in the need for 500 wholesale negotiations every year, either between new entrants and MNOs, or existing MVNOs renegotiating their contracts or attempting to change network partners. With so many negotiations happening day to day, you’d think there would be plenty of knowledge on how to do it well and get the result you want. Sadly not. Firstly, in my experience, many MVNOs approach wholesale negotiations with the wrong mindset. I don’t want to use the word haggle, but it’s probably the quickest way to sum up the problem. It just doesn’t work to go in thinking you can get a rock bottom price, and it won’t secure the deal you need for launch, growth or stability. A negotiation of any kind requires thorough preparation,...
