Jun 23, 2015

4 Biggest Challenges Facing MVNOs in Latin America

By Samia Bounaira

Mobile Virtual Network Operators (MVNOs) are entering a period of rapid growth in Latin America (LATAM). The MVNO LATAM Summit, hosted in Mexico City June 16-17th 2015, revealed how the MVNO model is an attractive business opportunity for numerous industry players.

Around the world, MVNOs are altering the competitive environment, targeting specific market segments with attractive customized offers. The LATAM MVNOs of tomorrow need to be ready.

One of the key factors for the proliferation of MVNOs in LATAM is the availability of sufficient radio spectrums from the Mobile Network Operators (MNOs) to sell capacity without negatively impacting their own business.


In this regard, agencies are making significant efforts to regulate the market to increase the amount of spectrum allocated for mobile services. Nevertheless, the availability of capacity for MVNOs is not the only success factor. MVNOs must have a viable business plan, great execution capability and adequate funding to effectively serve as a virtual operator.

MVNOs in LATAM have similar challenges to a start-up company.

Top 4 MVNO Challenges in LATAM:

1. Scarcity of specialized workforce

2. Lack of experience in strategic business planning for launching successful MVNOs

3. Minimal technological and architectural knowledge of MNO / MVNE / MVNO eco-system

4. Lack of experienced management teams with hands-on experience in launching successful MVNOs

Research shows that only 20% of MVNO initiatives succeed. MVNOs need to develop and execute a well-designed strategy. This strategy should focus on market segmentation, tailored offers for each specific segment along with robust architecture and implementation plans.

This is not a price war against Mobile Network Operators (MNOs). On the contrary, if MVNOs can differentiate and create (and maintain) a valuable service support system for their customers, they have an opportunity to thrive in this market. Proper business planning, technological industry knowledge, superb execution capabilities are the key ingredients for high customer satisfaction and a successful MVNO launch.

Excelacom has experience and expertise in successfully launching wireless carrier MVNO businesses. With the MVNO market emerging in LATAM, Excelacom's extensive MVNO experience and unique solutions can help the operators in this region to minimize their risk and quickly launch a complete wireless business to market from concept to delivery. For more information, email us :

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