VANCOUVER, British Columbia, Nov. 30, 2017 /PRNewswire/ — Global communications software company PortaOne, Inc. today announced the immediate availability of “OTT MVNO,” a white paper detailing a novel approach to launching a Mobile Virtual Network Operator (MVNO) business. Available via free download from the PortaOne website, the paper introduces a third option to traditional “thin” and “full” MVNO business models—one with lower upfront capital expenditure, yet greater flexibility to exploit wholesale/retail revenue opportunities.
“Until now, any entrepreneur wishing to enter the wireless communications industry as an MVNO had two options—invest a significant amount of capital in infrastructure, or surrender much of the product control to the host network operator,” said Andriy Zhylenko, Chief Technical Officer, PortaOne. “This white paper outlines a very desirable alternative. An ‘Over the Top’ MVNO structure provides an optimal balance of cost, flexibility, and time-to-market. Moreover, it can give the entrepreneur a sustained first-mover advantage in new services when compared to traditional MVNOs.”
Conventional MVNO business models have generally run along two lines: a “thin” deployment in which most of the infrastructure—and therefore, product control—is supplied by a Mobile Network Operator (MNO), or a “full” deployment where the MVNO leases only its radio network access from the MVO and furnishes its own infrastructure for customer provisioning, billing, data service management, call and messaging services, and so on. Both have inherent drawbacks that limit the viability and growth of the business.
PortaOne’s “OTT MVNO” white paper introduces a way to circumvent those major drawbacks. Leveraging the proliferation of 3G/4G connectivity and maturity of VoIP services, OTT (Over-the-top) MVNO runs voice calls over the host’s IP network, using a simple VoIP application on the customer’s smartphone. By doing this, the MNO’s mobile core is used only for data services; call and messaging services are managed directly by the MVNO.
“Huge advantages accrue to MVNOs using this business strategy,” continued Zhylenko. “One of the best comes from the ability to boost profits by signing direct contracts with other VoIP carriers. This allows the MVNO to route international and domestic calls to them using least-cost-routing.”
The PortaOne white paper also describes the real-world experience of a U.S. telecom that used the OTT MVNO strategy to migrate other MVNOs to its platform. This allowed the telecom to become a Mobile Virtual Network Enabler (MVNE), providing hosted real-time billing, mobile network service provisioning, and customer management—a scenario that