Virtual operator itself

    Mobile communications successfully fit into the IT infrastructure of Russian companies. A high level of penetration of communication and the spread of mobile devices gives the business a lot of benefits, the main among which is the ability to retain a client and receive additional income.

    Paradoxically, despite the popularity of mobile tools in the service of business, many companies do not even suspect that ... literally in 15 minutes it is possible to launch their own communications operator - MVNO (mobile virtual network operator). You can sell your SIM-cards, set tariffs, develop sets of services, which, in turn, in addition to the guaranteed wow-effect will provide a stable profit. At the same time, the company does not bear the costs of equipment, software and qualified engineers who support the network.



    Thus, own MVNO is available to almost any business ready to receive a promising source of income and a reliable tool for working with clients. Moreover, the market dynamics contributes to such a model - for example, according to J'son & Partners Consulting estimates, the growth rate in the field of mobile banking from 2014 to 2018 will be 28%, and the benefit from the use of convergent communications will increase 1.5 times. Is this not an argument?

    MVNO is not a lyrical digression at all


    MVNO (mobile virtual network operator) is a virtual communications operator that provides services under its own brand, but does not have its own technical base. That is, the operator issues its branded SIM cards, with its tariffs and services, but does not have its own radio frequency resource and radio transmission infrastructure, but simply rents them using networks, switches, and sometimes billing a mobile operator.

    From an engineering point of view, MVNO is a virtual network implementation scheme based on the existing radio transmission infrastructure of cellular operators. In the diagram you can see that the entire physical part is in the plane of MNO - an ordinary cellular operator, and the virtual one "gets" HLR (database with information about the subscribers of this network) / AuC (authentication center) and MSC - a switching service that can be accessed through the gatekeeper Connect to PSTN, the public switched telephone network. The MSC of the virtual operator interacts with the BSC (Base Station Controller), which combines the base stations and contains all the control logic and connects to the MSC mobile switching center (and it directly controls the connection between subscribers). It turns out a kind of symbiosis - a network with dedicated features is added to a regular network.



    From an economic point of view, such an operator is a good story: in fact, you can buy traffic at wholesale prices and resell it at your own retail prices or distribute it if the strategy and goal of creating MVNO requires it. The low prices for virtual operator services are due to the fact that there is no need to pay for expensive equipment, radio frequencies, maintain, develop and modernize the infrastructure. Accordingly, the vacated budget can be used to conquer its segment of consumers and develop a narrow niche. In general, a narrow product niche is a valuable feature of MVNO for business:

    • economic value - income from the sale of traffic and services to subscribers, a narrow focus on the selected segment guarantees a pool of active subscribers

    • commercial value - customer retention by clear advantages and benefits (low price, cheap roaming, useful content, etc.)

    • psychological value - the formation of a narrow circle (niches of their subscribers who share the brand philosophy.

    Recently, another prerequisite has appeared on the Russian market, which plays into the hands of the company that decided to create MVNO - phones and smartphones with two SIM-cards. According to J'son & Partners Consulting , the total share of sales of smartphones with two or more SIM cards in the Russian Federation in 2014 amounted to 60%. This is a serious increase, especially since manufacturers began to offer two SIM cards not only on budget models, but also on flagships. To this figure, you can add those who consistently have two phones from the category: "my eternal number" and "for promotional and cheap SIM cards." In fact, many of your subscribers (customers) will not need to painfully choose an operator; just insert a second SIM-card into your phone.

    Obviously, MVNO is a good solution for the tourism industry, providers, retail chains, banks, fixed-line operators, payment systems, etc. ... There is a common set of benefits that each company belonging to the listed fields of activity can get.

    • Using MVNO for e-commerce and mobile advertising - a virtual operator in its own network is free to regulate content and use advertising functions as it sees fit.

    • Distribution of alerts and the provision of information services. For example, the implementation of a mobile referral service in which a subscriber will be able to request information. Moreover, any VAS (value added services - an additional service) can be implemented according to two main models:

            1) an interactive class - access to the services is via the web-browser of the mobile device
            2) background class - the service is distributed by subscription (balance, exchange rate, data from terminal, etc.)

    • The use of inter-machine communication services (M2M) - tracking sensors, indicators, information from ATMs or terminals via the GSM network.

    • Communication with the consumer, the provision of technical and service support.

    • The creation of home zones is important for retail, banks, large entertainment and travel companies, large enterprises and metropolitan areas.

    • Work with employees: monitoring, communication.

    Thus, MVNO combines the advantages of conventional GSM and VoIP mobile communications, which makes it a serious and popular tool for large companies.

    Opportunities for creating MVNOs by industry


    Our company has been creating virtual operators for B2B for a long time, and today Tottoli's experience allows us to identify several key areas that successfully use "their cellular network." Initially, it was clear that different business areas needed different MVNO configurations. Therefore, we were able to create optimal solutions based on the needs of each group of potential owners of a virtual network. There are three main types of creating a virtual operator.

    Light MVNO- A simple solution that does not impose any serious management obligations on the owner. In fact, this is a reseller scheme, introducing which the company receives a good tool to attract and retain customers, as well as a source of additional income from the dealer commission. The company can brand SIM cards and packaging, gain access to the admin statistics panel. Acceptance of payments, technical support and the network name are on the side of the partner operator HNO (Hosting Network Operator - roughly speaking, the owner of the radio network). This scheme is suitable for those who are interested in providing communication services for customers, but do not really want to bother with the technical side of the issue: communication salons, travel companies, retail chains, retail, insurance companies, etc.

    Pro MVNO- A solution for companies that have their own developed PBX and use it, for example, for communication between employees and departments. In addition, such a network can be used for niche offers: migrants, students, volunteers of large-scale events, etc. ... Pro MVNO provides serious opportunities.

    • Own traffic and converged traffic (SIP + GSM). The company can simultaneously take advantage of mobile communications and IP-telephony.

    • Development of your own tariff plans. The only limitation is the scope set by the HNO billing system (in our case, Tottoli GSM). Billing is a system responsible for collecting and processing data in telecommunications. Tariffs and tariffing schemes are also taken into account in billing, therefore, when developing tariffs, it is worth considering its features. However, it is difficult to go beyond the limits - modern billing systems are flexible and functional.

    • Ability to create settlement mechanisms with subscribers. There are two main mechanisms: pre-paid (the subscriber paid and uses the connection) and post-paid (the subscriber used the services and paid at the end of the period). In the case of using Pro MVNO, the company can choose the most suitable option for itself or combine both.

    • Own technical support. On the one hand, this carries additional costs, and on the other, it provides opportunities. First of all, it is an opportunity to accumulate knowledge about subscribers and a way to implement information and some marketing initiatives.

    • Routing and Direction Management. This is necessary for companies wishing to unite, for example, branches or groups of subscribers and form tariffs for them in directions.

    HNO gives the owner of the virtual operator the right to name the network (for example, by brand name). Payments are accepted on the MVNO side, an admin panel is provided (billing + statistics).
    This option is suitable for companies that are ready and able to be responsible for administering a virtual network and take advantage of all these advantages. These are banks, large enterprises and holdings with an extensive network of branches, companies providing fixed-line services and wanting to retain subscribers and receive additional income.

    Full MVNOIt is aimed at a corporate client who seeks to build his business processes on the basis of communication. For example, it may be the owners of mobile payment services or fixed-line operators. If we turn to the global MVNO, you can find many examples where virtual operators often became competitors to the largest players in the mobile communications market, for example, winning young people with low prices and aggressive marketing. There were cases that the mobile operators themselves created MVNOs to enter the closed market or to retain their disloyal subscribers.

    In addition to the above advantages of Pro MVNO, the company gets additional features.

    • Creation and use of applets for SIM cards - small independent programs that extend the functionality of the SIM card. For example, it is applets that turn a SIM card into a payment tool.

    • Full control of services and tariffs, use of API.

    • Assigning your own pool of numbers. The company establishes its numbering plan, can manage the connection, create virtual numbers.

    • Using FMC (converged communications), which allows you to create a telecommunications infrastructure with short access numbers within the company.

    In fact, a full-fledged MVNO is being formed - a mobile operator with tariffs, number base, billing, operating as an HNO, but without its own radio network.

    Tottoli GSM helps evolve MVNO using a combination of VoIP technology and classic GSM. The cost of calls is reduced, and this guarantees the possibility of forming low prices for communications, including roaming, which is often infinitely expensive and causes the termination of the contract between the subscriber and the operator.

    Today, many business processes are tied to IP telephony. But there is a small feature that the company faces sooner or later - VoIP is beginning to be missed. And this is primarily due to mobility. Therefore, the creation of one of the types of MVNO is a reasonable solution for building a telecommunication and IT infrastructure aimed at optimizing processes and intensive development.

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