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MVNO Business Plan with Financial Modeling Spreadsheet (2014 Edition)

MVNO Business Plan with Financial Modeling Spreadsheet (2014 Edition)

This is a full business plan based on the launch of an illustrative Mobile Virtual Network Operator (MVNO) known as Contendus. The plan covers all aspects of the company launch plan including market assessment, funding requirements, financial analysis, market segmentation and product differentiation. Also included is go-to-market plan, distribution and replenishment plans, comparison of MVNO's and more. The major benefit of this report is to assist in the development of an MVNO launch and to help validate existing plans.

MVNO Business Plan Financial Modeling Spreadsheet

Why build your financial assessment from scratch?!?

This report includes an Excel spreadsheet with financial modeling including:

P&L
COGs
CAPEX
HR Costs
Cash Flow
Other Costs
Drivers and Revenue
Graphs and Summary

The spreadsheet provides both data points for analysis as well as a format for modeling your own parameters for a financial assessment of your MVNO business plan.

Launching a MVNO involves a lot of careful planning and an understanding of the competitive threats and opportunities. Understanding the competitive issues and what type of MVNO to launch is key to success. A critical aspect to the success of any MVNO is its wholesale negotiations with the host mobile network operator (MNO). Accordingly, the MVNO Business Plan includes Modelling and Negotiation Strategies for Contracting with Host Mobile Network Operators. This includes rate structures of the retail minus and cost plus models, the pros and cons of each, and how to implement them.

The MVNO Business Plan also includes evaluation of wholesale incentives, the reconciliation process and also what macro and micro environmental aspects to consider when defining your negotiation strategy. Also includes is an example Service Level Agreement (SLA), modeled from real life operational MVNO SLAs, which can be customized and built upon to meet the needs of their service management requirements.

When planning an MVNO, successful MVNO companies will learn to think like a MNO and develop their strategies accordingly. Purchasers of this report will also receive the following reports for support in business plan and strategy development:

Network Operator Monetization Strategies Leveraging New Sources of Revenue
Next Generation Business Models for MNOs in LTE, M2M, and OTT Environment
Purchasers at the Team License and Company-wide License level will also receive at no additional cost:
LTE Advanced 2014: State of the Market and Future Prospects
Purchasers at the Company-wide Level will also receive at no additional cost:
End-to-End M2M, 7th Edition

All purchases of Mind Commerce reports includes time with an expert analyst who will help you link key findings in the report to the business issues you're addressing. This needs to be used within three months of purchasing the report.

Target Audience:
MVNO start-ups
Mobile network operators
MVNE/MVNO service providers
Investors and analysts in the mobile space
Suppliers of MVNO equipment and software
Consultants and systems integration companies

General Methodology

Mind Commerce Publishing's research methodology encompasses input from a wide variety of sources.

We rely heavily upon our Subject Matter Experts (SME) in terms of their market knowledge, unique perspective, and vision. We utilize SME industry contacts as well as previous customers and participants in our market surveys and interactive interviews.

In addition, we rely upon our extensive internal database, which contains modeling, qualitative analysis, and quantitative data. We review secondary sources and compare to our primary sources to update previous findings (for prior version reports) and/or compile baseline information for technology and market modeling.

We share preliminary models with industry contacts (select previous clients, experts, and thought leaders) to verify the veracity of initial modeling. Prior to final report production (analysis, findings, and conclusions), we engage in an internal review with internal SMEs as well as cross-expertise, senior staff members to challenge results.

We believe that forecasts should be prepared as part of an integrated process which involves both quantitative as well as qualitative factors. We follow the following 3-step process for forecasting.

Forecasting Methodology

Step 1 - Forecasts Input: The inputs for the present and historical revenues are derived from industry players. Financial and other quantitative data for individual sub-market categories are derived from original research and tested with interviews with major industry constituents.

Step 2 - Forecasting of Future Years: Mind Commerce extends forecasts based on a variety of factors including demand drivers as well as supply side data. Key success factors and assumptions are considered.

Step 3 - Validation of Data: The final step is to validate projections, which is accomplished in consultation with both internal and external industry experts, including both topic and regional experts. Adjustments are made to the forecasts based on factors identified throughout this process.


Mobile Virtual Network Operator (MVNO) Business Plan
1. EXECUTIVE SUMMARY
A. THE BUSINESS
B. THE STRATEGY
C. THE MARKET
D. THE MANAGEMENT
E. THE FINANCIALS
F. THE COMPANY MISSION
G. THE CRITERIA OF MVNO
H. EXCEPTIONS
2. THE BUSINESS
A. REQUIREMENT ANALYSIS
B. DESCRIPTION OF SERVICES
C. TARGET MARKET
D. SERVICES OFFERED - PRIMARY REVENUE DRIVERS
E. POTENTIAL FUTURE SERVICES - ALTERNATIVE REVENUE SOURCES
F. DISTRIBUTION, PURCHASING AND REFILLS
G. STARTER PACKAGE
H. HANDSETS AND HARDWARE
I. GSM SYSTEM AND THE SIM-CARD
J. THE WEB-SITE AND CUSTOMER INTERFACE
K. SCOPE FOR ENHANCEMENTS AND FUTURE TECHNOLOGY 4G/LTE
L. BACK-OFFICE AND CUSTOMER CARE
M. THE NETWORK OPERATOR
N. REGULATORY
O. CHURN
3. THE OPPORTUNITY
A. OPPORTUNITY
B. STRATEGY
C. PROVISIONING AND MANAGEMENT
D. INFRASTRUCTURE
E. MULTI-IMSI APPROACH.
F. MULTI-NETWORK VPN
G. SECURITY AND CONTROL
H. FORECAST
4. THE MARKET
A. US WIRELESS MARKET
B. PREPAID MARKETS
C. WHOLESALE
D. NEGOTIATION VECTORS
E. ANALYSIS ON SETUP COST
F. TERMINAL USAGE AND CONTROL
G. NETWORK USAGE AND CONTROL
5. MARKETING PLAN
A. GENERAL OVERVIEW
B. MARKETING IDEAS
C. INITIAL MARKET SEGMENTS AND STRATEGIC CONSIDERATIONS
D. PARTNERING AND CO-BRANDING
E. LOYALTY PROGRAM
F. MIGRATION STRATEGY
6. FINANCIAL OVERVIEW
A. REVENUE STREAMS & COST CONSIDERATIONS
B. REVENUE GROWTH
C. FINANCIAL PROJECTIONS
D. FUNDING
E. EXIT STRATEGY
7. EXTENSIONS AND UPGRADES
A. SELECTION CRITERIA
B. TECHNICAL REQUIREMENTS
C. OTHER FACTORS
8. POTENTIAL MARKET SEGMENTS (AD. 1)
9. THE MANAGEMENT TEAM AND PARTNERS (AD. 2)
A. MANAGEMENT
B. BOARD OF ADVISORS AND PARTNERS
A. PARTNERS
10. COMPETITION (AD. 3)
A. GENERAL OVERVIEW
B. PREPAID PLAYERS
B. SWOT ANALYSIS
C. PREPAID COMPETITION ANALYSIS
EUROPE VS. UNITED STATES (AD. 4)
C. GENERAL OVERVIEW
11. THE MOBILE VIRTUAL NETWORK OPERATOR MARKET & GROWTH OVERVIEW (AD. 5)
A. GENERAL OVERVIEW
B. GLOBAL OVERVIEW AND FORECAST
C. MVNO DRIVE IN EUROPE
D. MVNO DRIVE IN AMERICA
E. MVNO DRIVE IN MIDDLE EAST
F. MVNO DRIVE IN ASIA PACIFIC
12. CASE STUDIES (AD. 6)
13. CONCLUSIONS
14. APPENDIX
A. CELLULAR OPERATOR ORGANIZATION STRUCTURE
B. INITIATING CONTACT WITH MNOS
C. ESTABLISHING A STRATEGY
MVNO Operational Cost Planning: Modelling and Negotiation Strategies for Contracting with Host Mobile Network Operators
INTRODUCTION
1.1. The MVNO Landscape
1.2. MVNO Background
1.3. MVNO Technology Options
2. WHOLESALE MODELS
2.1. Cost Plus Model
2.1.1. Cost Plus Rate Sheet
2.2. Retail Minus Model
2.2.1. Straight Retail Minus
2.2.2. Benchmark Retail Minus
2.2.3. Retail Minus Rate Sheet
2.3. Interconnect
2.4. Wholesale Incentives
3. INVOICING AND RECONCILIATION
3.1. Invoice Dispute Process
3.1.1. Sample Invoice
4. ENVIRONMENTAL CONSIDERATIONS
4.1. Macro Environmental Analysis
4.2. Micro Environment Analysis
5. RECOMMENDATIONS
5.1.1. Knowledge and Expertise
5.1.2. Technology Solution
5.1.3. HNO MVNO Rate Structure
5.1.4. HNO Services List
6. NEGOTIATION TACTICS
6.1.1. Tell them What they Want to Hear
6.1.2. Start High
6.1.3. Contract Clauses
7. CONCLUSIONS
FIGURES
Figure 1- MVNO Technology Options
Figure 2 - Wholesale Charges for Network Activity using the Cost Plus Model
Figure 3- Segments Diagram
Figure 4- Wholesale Charges for Network Activity using the Retail Minus Model
Figure 5 - Calculating the straight Retail Minus
Figure 6 - Calculating the Benchmark Retail Rate
Figure 7- Calculation for Wholesale Rate
Figure 8- Interconnect Charging
Figure 9 - Wholesale Rate Variance Calculation with Interconnect Consideration
Figure 10 - Example MNO MVNO Commercial Relationship
Figure 11- Sample Wholesale Invoice Page One
Figure 12 - Sample Wholesale Invoice Page Two
MVNO, MVNE and MNO Service Level Agreement (SLA)
INTRODUCTION
WHAT IS A SERVICE LEVEL AGREEMENT (SLA)
WHY IS IT IMPORTANT TO HAVE AN SLA?
SLA'S IN THE MVNO WORLD
SAMPLE SERVICE LEVEL AGREEMENT (SLA)
MVNO Billing through Wholesale Line Rental
1. Review
2. Dispute Resolution
3. Metrics
4. Definitions
4.5. Unconfirmed Clear
4.7. Confirmed Clear Permanent
4.8. Parked Time
4.9. Establishment of Contact Points
4.10. Reoccurring faults
4.11. Fault escalation
5. Fault Escalation Process
6. SLA Schedule
Appendix 1- Exclusions
Appendix 2- Guidelines for Payment of Penalty Credits
Appendix 3 - Parked Time
Appendix 4 - General Dispute Process
Appendix 5 - Wholesale Usage Invoicing & dispute process

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