Alternatives to Building an MVNO for Cable Companies

In today's world, businesses of all sizes rely heavily on wireless services to run their day-to-day operations. With the ever-growing demand for wireless services, cable companies are constantly looking for ways to expand their offerings to meet the needs of their customers. However, the question of whether to build an MVNO or offer other wireless services, such as wireless failover, fixed wireless, and private wireless, is a difficult one to answer. In this article, we will discuss why cable companies should focus on offering wireless failover, fixed wireless, and private wireless services instead of building an MVNO.

What is an MVNO?

First, let's define MVNO. A Mobile Virtual Network Operator (MVNO), is a wireless service provider that does not have its own network infrastructure, but instead uses another network operator's infrastructure to provide wireless services to its customers. In other words, an MVNO is essentially a reseller of another company's wireless services. Building an MVNO requires a significant investment upfront, including the development of a billing and customer management system, marketing, and advertising campaigns, and a team of sales and support personnel. Additionally, margins for MVNOs tend to be small, and the competition in the wireless market is fierce.
On the other hand, offering wireless failover, fixed wireless, and private wireless services can be a much quicker and more profitable way for cable companies to enter the wireless market.

Differences Between Wireless Failover, Fixed Wireless, and Private Wireless

Wireless failover, for example, is a service that provides businesses with a backup internet connection in the event their primary connection fails. This service is critical for businesses that rely on the internet to conduct their day-to-day operations, such as e-commerce websites, banks, and hospitals. Cable companies can leverage their existing network infrastructure to provide wireless failover services to their customers, and the margins for this service can be much higher than for an MVNO.

Fixed wireless, on the other hand, is a service that provides businesses and consumers with high-speed internet access without the need for a wired connection. This service can be particularly useful in areas where wired internet access is not available, such as rural areas or buildings where wiring is difficult or impossible. Cable companies can leverage their existing network infrastructure to provide fixed wireless services to their customers, and again, the margins for this service can be much higher than for an MVNO.

Finally, private wireless services are becoming increasingly popular among businesses that require a dedicated wireless network for their operations. For example, a hospital might require a private wireless network for its medical devices and patient data, while a manufacturing facility might require a private wireless network for its equipment and machines. Cable companies can leverage their existing network infrastructure to provide private wireless services to their business customers, and the margins for this service can be much higher than for an MVNO.

Why Offering Private Wireless Networks Might be Better

In conclusion, while building an MVNO can be a viable option for larger cable companies looking to enter the wireless market; offering wireless failover, fixed wireless, and private wireless services can be a much quicker and profitable way to do so. By leveraging their existing network infrastructure, cable companies can offer these services to their customers and enjoy higher margins than they would with an MVNO. Additionally, these services are in high demand among businesses and consumers, making them an attractive offering for cable companies looking to expand their offerings and grow their business.

Kajeet works with cable companies providing LTE failover and private cellular solutions for a faster entry into markets and growth acceleration.

Let’s start the conversation about your own private wireless network and allow us to show you how to make use of our solutions to fulfill your business’s goals.