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Enterprise MVNOs Need to Target Several Critical Factors to be Successful : ABI Research

By Shankar Pandiath January 15, 2013

ABI Research, a market intelligence company specializing in global technology markets, believes the time is right for an enterprise Mobile Virtual Network Operator (MVNO), if the right industry verticals are targeted.

Enterprise practice director, Dan Shey, emphasized that successful enterprise MVNOs not only need to target the right industry verticals, but offer a range of value-added services, those for which they have more control and offer greater margins.

Fragmentation in hardware, software and suppliers is one of the biggest challenges facing wireless communications and mobility applications and services space today. The implementation and management of wireless and mobility will remain a huge challenge unless the right industries are targeted, and M2M connections and profitable value-added services are provided.

Value-added services include mobile device management, telecom expense management and mobile application development and management services. These services can contribute as much as 25 percent of revenue per employee according to ABI Research.

Revenue contribution significantly rises to a high of 34 percent when M2M connections and management services are added.

Utilities, transportation and warehousing, finance and insurance and healthcare are other verticals that can provide opportunities to MVNOs.

The current supplier environment and market conditions were examined by ABI Research in a report titled, “Enterprise MVNOs and MVNEs,” which studied the need of the market for enterprise MVNO/ MVNE. Potential revenue opportunities are quantified and ABI provides market sizing for B2B and B2B2C MVNOs.

It also delivers subscriber estimates for B2B MVNO for seven geographic regions and 20 industry verticals.

B2B2C MVNOs have a bigger landscape as they have a larger addressable market. In other words, a healthcare MVNO targeting seniors has a worldwide addressable market of nearly 600 million sexagenarians in 2010, rising to over 1.1 billion by 2050.

B2B MVNOs, however, have a smaller addressable market but can see higher margins.

Shey concluded, “Brazilian insurance company Porto Seguro is an example of an MVNO that could be very successful. They are an M2M MVNO for their car insurance customers and are adding personal mobility services for its employees and customers.”

The ABI report finishes with industry-specific recommendations and lists the stakeholders. It has a review of ICT suppliers who will have the most influence on this market.

These findings are part of ABI Research’s Enterprise Mobility Applications and Services, Enterprise Mobile Devices and Mobile Enterprise Technologies Research Services.

ABI Research specializes in in-depth analyses and quantitative forecasts of trends in global connectivity and other emerging technologies.




Edited by Braden Becker

IoTevolutionworld Contributor

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