Overcoming Common MVNO Billing Challenges with Automation
TABLE OF CONTENTS
- What is an MVNO?
- What do MVNO Solutions Do?
- Why Mobile Network Operators Need MVNO?
- MVNO Billing Solution—an Understanding
- Major Elements of an MVNO Billing Solution
- Common MVNO Billing Challenges
- Overcoming Challenges with Automation
- MVNO Billing Systems, the Key to Success
- Conclusion
- FAQs
What is an MVNO?
MVNO stands for Mobile Virtual Network Operator. It is a wireless communication services provider that does not own the wireless network infrastructure on which it provides services to customers. An MVNO enters into a business agreement with a Mobile Network Operator (MNO) to acquire scalable access to network services at wholesale rates and then independently sets retail prices.
What do MVNO Solutions Do?
An MVNO provides other important services that support its clientele, but does not invest in mobile network infrastructure. Instead, it provides other relevant services to support the clientele.
An MVNO solution does:
- Distribute assets, like SIM cards and mobile phones
- Marketing and promoting products
- Subscriber registration to the network
- Manage billing and invoicing of clients for services
- Offer subscriber services, such as network top-ups, balance checks, SMC capabilities, and customer care
Why Mobile Network Operators Need MVNO?
There are two major reasons why mobile operators opt to leverage MVNO solutions.
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An opportunity to reach non-targeted divisions
Like other organizations, mobile operators also want to grow and expand their operations. But this can sometimes be difficult to achieve. A solution is to look for partners with a big customer base. These partners can position themselves and leverage brand affinity to sell more mobile services to the clientele.
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Leverage Infrastructure to make more revenue streams
A mobile network usually can handle more user requests than it already has. This is an opportunity for mobile operators to offer unused bandwidth to MVNOs, which makes selling access to infrastructure and acquiring revenue possible.
MVNO Billing Solution—an Understanding
Considered the next-generation solution, an MVNO billing solution includes processes and software that enable MVNOs to manage customer accounts, bill services, plan subscription models, and process payments. Solutions usually include features like rating and charging usage, customer accounts management, processing of payments, and generating invoices and financial reports.
Major Elements of an MVNO Billing Solution
The major elements of MVNO Solutions include:
- Rating and Charging. The process includes applying tariffs and pricing plans based on usage volume, time of day, and location.
- Customer Management. Manages customer accounts, such as modifying customer profiles, onboarding new clients, and managing client preferences.
- Processing Payments. Mobile payments, direct debit, and credit card payments are all flexible payment solutions that an MVNO can provide.
- Invoicing and Reporting. Invoices, such as reports and analytics, are used to monitor usage and revenue over time.
Common MVNO Billing Challenges
When it comes to billing, providers of cloud-based MVNO services face unique challenges.
1. Rigid Billing Plans
Rigid billing plans, or the lack of flexibility, are one of the common challenges that MVNOs face. Most offer fixed plans that cannot be tailored to individual customer requirements. This could result in possible income loss. Take, for example, a customer who requires more data and voice minutes may switch to another provider that offers more flexibility.
The lack of flexibility can be connected to the dependence of an MVNO on its mobile network operators for network infrastructure. It limits the ability to offer customized plans. Also, MVNOs with limited resources may find it hard to create and manage several billing plans.
2. Ineffective Billing Systems
Ineffective billing systems that affect business performance and operations are one major challenge that MVNO billing systems face today. This can result in several issues, including billing errors, payment delays, and dissatisfied customers. Complex or outdated systems can be more costly overhead and may result in customer retention problems.
3. Lack of MNO Integration
MNOs play an integral role in the operations of a mobile virtual network operator, but integration between the two could be challenging. The absence of seamless integration can cause errors and delays in billing processes, which lead to customer dissatisfaction and loss of revenue.
Overcoming Challenges with Automation
Automation can help overcome the recurring billing challenges. The process is simplified with a cloud-based MVNO.
1. Seamless applications integration across the business
A cloud-based MVNO solution can bring intelligent end-to-end subscription management and billing into one platform. By integrating billing with accounting, CRM, taxation, payment gateway, and activation and provisioning systems, a cloud-based solution offers a single platform with various products, which ultimately power the entire experience.
2. Automating the quote-to-cash process
A modern platform enables automating the quote-to-cash process and building tailored quote templates with the company’s preferred format and logo. Individualized quotes can be prepared and emailed directly to customer prospects in minutes. Automation can eliminate all manual and offline workflows. Additionally, it allows configuration of custom business customer workflows to automatically deal with quotes and order approvals.
3. Efficient subscribers and partners management
An innovative billing and revenue management system makes managing subscribers and partners easier. With CSR tools, you can build, customize, and update profiles and plans, upgrade or downgrade subscriptions, add new products to a subscription, and renew, cancel, or pause plans.
Also, the system allows efficient calculation of product usage, manages invoices, applies relevant charges, facilitates online payments, sends reminders, and monitors and distinguishes revenue for accounting and reporting purposes.
4. Personalize the customer experience
A modern subscription management solution enables organizations to pack and bundle offerings with unique promotion bundles, innovative pricing, and limited-period discounts. The CPQ or Configure-Price-Quote module delivers flexibility to build different products and pricing plans with tailored configurations to various markets. Products, promotions, and bundles for customers can be customized.
5. Ensure accurate invoicing and taxation
A modern platform is free from worries about incorrect invoices and taxation, and compliance. The system enables accurate billing, faster collection, and pinpoint revenue leakage. Since the platform enables configuring complex products with different charge types, it’s easy to create product variations in different currencies while assigning the pertinent tax code for certain markets.
MVNO Billing Systems, the Key to Success
MVNO solutions, such as a cloud-based MVNO, offer numerous advantages for mobile virtual network operators.
1. Seamless Billing
MVNO solutions can consolidate billing for different services. This makes it easy for customers to understand and pay their bills.
2. Automated Invoice
Invoice automation simplifies the billing process, which minimizes manual effort and possible errors.
3. Flexible Pricing and Offerings
The solutions enable MVNOs to provide flexible plans and competitive pricing to attract new customers and retain old ones.
4. Revenue Assurance
Monitoring and analytics in real-time help MVNOs ensure accurate billing and maximize income.
5. Improve CRM
Integration with Customer Relationship Management (CRM) systems enables better management of customer interactions that lead to more customer satisfaction and loyalty.
Conclusion
When it comes to connectivity of developed economies across the globe, MVNO billing solutions have always been considered important. With the rise of automation and the Internet of Things, solutions and processes evolve to meet the changing demands. With evolving technology, challenges can be overcome easily.
FAQs
How can a cloud-based MVNO introduce more flexibility?
It can introduce more flexibility by offering different payment options, including postpaid, prepaid plans, and pay-as-you-go.
Why is it important for an MVNO to have access to reliable billing support services?
Access to reliable billing support services is vital to ensure accurate and timely billing, resolve billing issues, and address technical errors or problems.
How can an MVNO strengthen the relationship with MNOs for better billing?
Establishing clear communication channels, collaborating on billing improvements, and sharing billing data and analytics can reinforce the MNO relationship.
MVNO and an MNO, what’s the difference?
MNOs own and operate their cellular networks. MVNOs rely on their infrastructure.
Can an MVNO provide the same service quality as an MNO?
While an MVNO uses the MNO infrastructure, it can offer high-quality services. They may have less control over network coverage and performance.
