Next steps for the Canadian MVNO market

Telecoms.com periodically invites expert third parties to share their views on the industry’s most pressing issues. In this piece Amit Agarwal, Sr VP – International Business Development at Plintron shares his further thoughts on the Canadian MVNO market.

CRTC, in mid-April  2021, announced a new regulation allowing certain regional MNOs of Canada to negotiate and sign interconnect agreements with the country’s National MNOs. This step is expected to empower the regional MNOs to ramp up their services and provide connectivity to its consumers all over the nation.

Regional MNOs will now have the chance to provide fully packaged solutions to its customers. They will also have the opportunity of capitalising on the thriving global MVNO market as well. Large brands and resellers, not only from Canada but also from around the world, are keen to launch their MVNO services in Canada, to the Canadian audience, for different target segments. MVNOs increase the mobile penetration rate and thereby expand the market. Regional MNOs can partner with multiple national MNOs and become Super MVNOs.

MVNOs will help MNOs to cater to under catered & niche market segments & maximize revenues from these hitherto ignored segments including Ethnic & First Nation communities, Affinity groups & communities in remote areas.  Normally MNOs would not have the wherewithal to target such segments and consequently lose out on significant revenues. MVNOs also provide customised services to niche segments.

MVNOs will help multiply wholesale revenues of MNOs & help the latter recoup 5G & other infrastructure investments. Modern MVNOs offer solutions in various spaces like Fintech, IOT, M2M and innovate beyond normal discounting model. MVNOs always work on host MNO network thus arguments of MNO’s customer churn is baseless. MVNOs utilise the unused capacity of MNOs and thus help them improve both revenue and margins.Hence a successful MVNO ecosystem will be win-win for both the MNO and the MVNOs

The formation of Mobile Virtual Network Operators of Canada (MVNOC)  was announced at the  MVNOs North America Digital Symposium on April 29, 2021. MVNOC will propagate the interests of the Canadian MVNOs with the government, regulators, consumer groups, Mobile Network Operators and other stakeholders in order to help  facilitate the growth of more independent MVNOs. Membership of the MVNOC is open at www.mvnoc.ca and all MVNOs and potential MVNOs are invited to register. MVNOC should  support and catalyse the growth of  a free and independent thriving Canadian MVNO  ecosystem.