In the race to win and retain customers, AltNets already have an edge.
AltNets have an existing customer base and a targeted niche. They’ve proven themselves to be reliable and more attentive to customer experience (CX). These networks are fast and robust, but in an increasingly competitive environment, simply offering broadband isn’t enough.
To get ahead of the competition, AltNets need to diversify their proposition. Over 85% of UK broadband customers get service from the likes of BT and Sky, and while AltNets are making inroads, portfolios need to expand. A strong, diversified offering keeps customers loyal and grows the customer base.
That customer base can grow beyond the initial niche – now, AltNets have the opportunity to take their operations across the UK.
There’s now a real opportunity for AltNets to expand into the Mobile Virtual Network Operator (MVNO) space. It opens new revenue streams, future-proofs portfolios, and increases customer stickiness with that boosted opportunity to buy more products. It’s a journey that requires expertise from partners like Gamma, built on the foundation of a strong network.
The future belongs to providers who can deliver connectivity from anywhere. As an MVNO, that’s where AltNets can change the game.
An MVN-Overview
First things first, MVNOs are brands that provide connectivity and mobile services without owning the mobile network. They rely on another operator’s network to supply their own branded SIMs and complete mobile package. Think Tesco Mobile and how it runs off the O2 network.
By 2029, the growth in the MVNO subscriber base is set to almost double. Brands need to be aware of just how massive an opportunity this is to open a whole new revenue stream. MVNOs represent a shift away from traditional carriers, and instead towards a more personalised mobile offering.
As an MVNO, these brands supply their own branded SIMs (both physical or eSIM), alongside unique mobile tariffs and CX. They retain full control of how mobile services complement their existing service, underlining the personalisation behind MVNOs.
For AltNets, it’s a chance too good to miss.
A natural fit
With a loyal customer base, a proven track record for service quality, and a niche identity, AltNets have a firm foundation in place. Adding mobile to the portfolio means AltNets aren’t just expanding the service list but also creating a multi-play proposition. Mobile and voice can be bundled in with existing fibre offerings, which is managed under one bill, to improve retention and boost CX.
The average UK household contains 2.35 residents. That’s one home to take fibre, and 2 customers to take mobile services. Sounds like a good deal.
Customers can enjoy a fast start with mobile SIMs inserted into routers, offering an immediate customer experience while fibre undergoes the setup routine. AltNets can promote speed and efficiency as part of their personal niche, continuing to diversify themselves from the competition.
Mobile connections are also available in case fibre goes down, which maintains connectivity and demonstrates the brand as being reliable and customer-first.
With a stronger portfolio, AltNets can home in on their niche and target more specific segments of the market. Again, it creates a more differentiated, competitive brand that can not only acquire more customers, but retain existing ones.
It makes sense for AltNets to move into the MVNO market. If football clubs can expand into the MVNO space, then why not AltNets?
Business benefits
The reasoning is sound, but what are the benefits? Why should AltNets add a mobile offering to their portfolio? Allow us to give a quick summary:
- New revenue streams: Increased ARPU and reduced churn by cross-selling mobile services to existing customers, while simultaneously attracting new customers.
- A stronger brand: Combining fibre, mobile and voice into one bundle creates a proposition that’s hard to beat and future-proofs the offering.
- Increased customer loyalty: More products in one household means more reasons for customers to stick with you. Simple.
- Gain customer insights: Incorporating mobile services provides deeper behavioural data to refine targeting and marketing techniques.
- Nationwide reach: Reach customers that can’t be reached with fibre alone – providing mobile services removes geographical boundaries.
Becoming an MVNO appears like a logical step for AltNets. There’s already a niche offering that can be taken further with added mobile capabilities. The logic and benefits are there, but as always, there are barriers to entry to be aware of.
Barriers to entry
The MVNO market, while enticing, is becoming far more competitive. With the global market set to be worth $156.74 billion by 2032, it’s wise to get ahead of the curve. More brands will look to enter and benefit from that predicted future value.
When moving into this sector, it’s imperative to partner with a mobile virtual network aggregator (MVNA) that understands how to succeed in the market. Without that support, those barriers and initial issues will be hard to overcome.
The onboarding process can be lengthy and complex, with process documentation and deployment taking a long time to enact. Some mobile network operators (MNOs) can take a more rigid approach, while asking for certain revenue targets or network commitments to start the partnership due to high demand.
At times, only mobile connectivity is provided when trying to implement the full solution. While some MVNAs and MNOs have excellent mobile knowledge, their knowledge and products are limited elsewhere. Those gaps in implementation require aspiring MVNOs to find additional providers.
The right provider
Not all MVNO solutions are created equal. AltNets looking towards the MVNO market should look to the likes of Gamma to meet those needs. An experienced enabler like Gamma offers:
- A fast time to market with low entry costs that maximises revenue.
- Flexible technical implementation to help AltNets start, and monetise, quickly and bring capabilities in-house at their own pace.
- Access to one of the UK’s most prominent networks through VodafoneThree.
- Bespoke consultancy and GTM support that differentiates your offer, reaching customers more effectively.
- A scalable portfolio, including landline voice, IoT, and security products, to open more cross-sell opportunities.
- Technical features that provide access to a full mobile stack that take offerings beyond standard network capability.
Gamma’s MVNO solution delivers the tech stack AltNets need to succeed. With access to over 200 roaming destinations and 99% UK population coverage, flexible tariffs and IoT integration, Gamma is the perfect partner to break into the MVNO market. Technical expertise and on-hand consultancy give AltNets the platform they need to make the step towards becoming an MVNO.
The journey ahead
There’s estimated to be approximately 130 AltNet providers in the UK. The need to tap into existing customer bases and diversify portfolios has never been greater. To stand out in such a competitive market, customer retention and new revenue streams are the way forward.
Working with Gamma to become an MVNO is a logical move for AltNets. Tailored solutions and in-depth knowledge help brands to launch their own mobile services and thrive in competitive markets.
Understanding the common challenges, while providing a market-leading tech stack, unlocks the potential behind MVNOs. For any AltNet seeking more information about this opportunity, contact karl.booth@gamma.co.uk to learn why AltNets should look at diversifying their portfolio.
When AltNets are looking to expand portfolios and tap into the mobile portfolio, Gamma should be the first point of contact.