How can MNOs protect themselves against falling revenues?

These are challenging times for many of the world’s mobile operators. MNOs, like many businesses, are facing uncertainty and new business challenges. The biggest challenge faced by many operators is that revenues have stalled, or are even under attack.

The goal of course is to stop any decline and start to grow revenues again. To do that effectively, we first need to assess what has caused the decline in revenues.

How can MNOs protect themselves against falling revenues?

The first issue is one that is faced by nearly all global operators and that is the rise of OTT apps – apps that use the operator network to create their own revenue streams through calls or messaging. The rise of these apps has seen a decline in ‘traditional’ voice calls and text messages.

Another issue for operators is that in territories with a large diaspora the home operators lose revenues as people move abroad. Those that move abroad turn to a local operator, while most of their friends and family that stay at home tend to try and find cheap international calling cards or deals, often using OTT apps, to stay in touch.

Finally, although it obviously hasn’t happened as much in 2020, international travel can result in lost revenues for operators. Whether it is holiday makers leaving their home network for two or three weeks every year as they find a cheap local solution abroad, or business people who need to travel abroad for meetings or to undertake projects. Every time that they use a local solution that is lost revenues for their home operator.

But what if operators could create their own branded, OTT app that helped to create a connection with the ‘lost’ diaspora, offered an easy and simple to use alternative for anyone travelling abroad and even created new offerings for existing subscribers?

This is one very positive step that MNOs could take to protect against falling revenues.

Of course, this kind of solution exists through x-Mobility’s AppVNOTM service.

An AppVNO can also be described as a digital MVNO, it’s an OTT app that offers calling and messaging functionality and allows you to reach an international audience that you couldn’t previously reach. While for your home audience it allows you to create new touchpoints, new pricing and new deals to target new subscribers.

We’re finding that more and more MNOs are exploring the AppVNO solution as a way to protect against falling revenues. If you’d like to explore it too, then get in touch.

Money Photo by Doran Erickson on Unsplash