Data doesn’t just support decisions; it drives them. For mobile virtual network operators (MVNOs), access to data is the one key differentiator upon which all other differentiators depend.
MVNOs are typically faster and more agile than their traditional MNO counterparts, “renting” network access and avoiding the complexities of network management so they can focus on delivering highly targeted, personalized experiences for their customers. It’s not uncommon for an MVNO to target a specific — sometimes underserved — market segment with unique service bundles and individually tailored tariffs to set themselves apart.
If traditional MNOs are giant cargo ships with all their infrastructure to carry and maintain, MVNOs are more like small yachts and speedboats. They need the support of the cargo ships to refuel and share the same shipping lanes, but they’re far more nimble and can change course more easily. And, of course, they provide a much more interesting and customized experience.
While MNOs are slow to innovate, offering relatively basic one-size-fits-all connectivity services and bundles, MVNOs can use their digital-native roots to create a far more nuanced subscriber experience. However, to do that, they need access to data. Unlike their network-focused counterparts, some MVNOs face restricted data access challenges when relying on underlying carriers’ operational and business support systems (OSS/BSS).
This limitation can stifle their ability to fully leverage advanced analytics and real-time data, which is crucial for developing personalized services and responsive customer interactions. What’s the point of all that digital agility if MVNOs are tied to the same legacy business platforms as their “parent” MNOs?
Understanding the strategic role of data, especially BSS data, is key for MVNOs aiming to carve out a niche in a saturated market. BSS data encompasses critical customer-related information, including billing, customer management and service provisioning details that are goldmines for predictive analytics and customer segmentation strategies. Effective use of this data enables MVNOs to tailor their offerings and anticipate market trends and customer churn. However, the crux of leveraging this data lies in their ability to access it in a manner that is both timely and granular — a hurdle many new entrants are learning to navigate as they choose their technological partnerships and platforms.
The challenge of data access for MVNOs
While MNOs have direct control over their network operations data and BSS data, some MVNOs find themselves at a serious disadvantage due to the terms of their agreements with these MNOs. This dependency typically limits their access to real-time, comprehensive datasets. Consequently, these MVNOs struggle to perform deep data analysis that can drive sophisticated AI-driven initiatives.
Moreover, the data MVNOs receive often needs more richness for advanced predictive analytics. It’s usually summarized or aggregated, stripping away the granularity that could reveal crucial insights into individual customer preferences and behaviors. This level of data often only supports basic operational reporting and fails to enable the dynamic, personalized marketing strategies that could set an MVNO apart in a competitive landscape.
The challenge extends into customer retention — without detailed data, predicting churn becomes a generic exercise, heavily reliant on broader market trends rather than specific customer signals.
The strategic importance of metadata
So why is this data so important? Data holds the key to unlocking profound insights into customer behavior. However, metadata includes information about the structure of the data itself, enabling the analysis of data usage patterns, service preferences, and interaction histories, which can be critical for predicting customer churn. The deeper the understanding of the metadata, the richer the analytical models created for the above analysis. AI further enriches these analytical models, which also depends on the metadata.
By analyzing customer data and metadata trends, MVNOs can identify early warning signs of dissatisfaction or decreased engagement, allowing them to offer personalized solutions and promotions to retain customers proactively.
The predictive capability is crucial, particularly for MVNOs, whose agility allows them to adapt offers to meet customers’ needs quickly and more effectively than larger, less flexible operators. In addition to churn prevention, comprehensive analytics based on customer data enables MVNOs to tailor their marketing efforts with remarkable precision. For instance, understanding when customers are most active on their devices or the types of services they use most can help craft targeted offers that are likely to be well-received.
This level of personalization enhances customer satisfaction and increases the effectiveness of promotional campaigns, maximizing the return on investment in marketing spend. By effectively leveraging their customer data and its associated metadata, MVNOs can transform generic service offerings into personalized customer experiences that differentiate them from competitors.
However, harnessing the power of data requires sophisticated data analytics tools and expertise. MVNOs must invest in or partner with platforms that can process and analyze large data volumes in real time. The investment allows MVNOs to continually refine and optimize their service offerings based on up-to-date customer insights. For MVNOs that can overcome these technical challenges, comprehensive customer datasets offer a strategic advantage in an industry where understanding and anticipating customer needs is becoming the only differentiating factor.
The role of BSS in gaining a competitive advantage
The ability to leverage BSS data effectively can mean the difference between MVNOs thriving and surviving in the telecom landscape. BSS data encompasses a wealth of information from billing systems to customer management records that, if analyzed correctly, can provide granular insights. However, as discussed, the challenge for many MVNOs lies in their restricted access to this data, often mediated through the systems of their partner MNOs.
To circumvent these limitations, innovative MVNOs are increasingly turning towards more autonomous BSS solutions that provide deeper data access and control and rich analytical models that, together with GenAI tools, enable them to tailor services precisely and responsively to customer needs. These BSS solutions often provide complete logical partitions such that the MVNOs’ customer and billing data is entirely independent of the parent MNOs’ data.
This “uncoupling” from carrier operators is becoming one of the core hallmarks of success for the rapidly growing MVNO market. That is because generative AI — continuously trained with accessible and rich BSS data — allows MVNOs to create personalized customer interactions and service offerings dynamically.
For example, AI can analyze patterns within BSS data to predict when customers might be considering a switch to another provider or might be interested in a service upgrade. Suppose a customer consistently exceeds their data limit. Instead of sending them a series of generic warning emails, MVNOs can issue a tailored offer with a suggested one-click upgrade to a more suitable tariff. This process, and the potential upgrades and offerings, can be automatically identified and suggested using AI, allowing MVNOs to hone in on unique opportunities that may otherwise have eluded them.
Moreover, this strategic use of AI can automate many other customer service processes, reducing costs and improving efficiency, which is crucial for MVNOs’ typically slimmer operating margins. However, the transition to AI-enhanced systems requires technical adjustments and a strategic shift in how data is perceived and used within the organization. MVNOs must view their data as a strategic asset — integrating AI into their operations isn’t merely a technological upgrade but a fundamental enhancement to their business model.
Integration demands a robust infrastructure and a culture that embraces data-driven decision-making. For MVNOs that achieve this integration, the benefits extend beyond operational efficiencies to strategic insights that can drive long-term growth and innovation. By prioritizing direct access to and control of their BSS data, MVNOs can capitalize on AI’s full potential, positioning themselves as agile and responsive market leaders.
