Value-added services for MNOs as new revenue streams

4 min read

The telecom industry landscape has been evolving rapidly. With the advent of new technologies and consumer behaviours, Mobile Network Operators (MNOs) need to adapt their strategies to address the changing demands of their customer base. While the industry’s traditional revenue sources have been voice, SMS and data, these are no longer adequate to sustain long-term growth. It’s crucial that MNOs explore ways to diversify their revenue streams that will enable them to continue to grow in the coming years. 

This article will explore four potential revenue streams that could be included in the MNOs. 

Why do operators need to explore new revenue streams?

For a long time, Voice, SMS, and Data services have been the industry standard for how MNOs generate profits. Today, these services are still necessary, bringing significant revenue to the operators. However, due to the continuous increase in data usage, these services aren’t contributing as much to growth as they were in the past.  

To continue growing at the pace of recent years, mobile network operators must develop new and innovative strategies to add value to these services, including offering tailored products for their customers. 

New revenue streams for MNOs are a Must-Have

The Mobile Network Operator (MNO) sector is subject to a range of factors, such as technological advancements, consumer behaviour, regulatory changes, and market dynamics. To sustain growth and maintain a competitive edge, MNOs must remain abreast of these changes by developing new monetisation channels. It’s essential to recognise that success in this field requires identifying and meeting new demands, which is becoming increasingly challenging in today’s ever-changing environment. Therefore, operators must implement new revenue streams, such as value-added services (VAS), in their networks to diversify their portfolios and boost their growth, thereby staying ahead of the curve.

The new revenue streams that can help boost your network

1. IoT expansion: The Internet of Things (IoT) expansion is expected to fuel the growth of Value-Added Services (VAS). MNOs will likely explore and capitalise on opportunities available in various sectors, such as healthcare, logistics, smart cities, and manufacturing. MNOs can offer specialised connectivity solutions for IoT devices, thus providing better services to their customers.

2. 5G adoption: The rollout and widespread adoption of 5G technology is set to usher in a new era of VAS. The enhanced speed, lower latency, and increased capacity brought about by this technology can potentially pave the way for innovative and exciting services, such as augmented reality (AR), virtual reality (VR), immersive gaming, and high-definition video streaming.

3. Content and entertainment: The demand for content and entertainment services provided via mobile networks is anticipated to persist at a high level. Operators might concentrate on collaborating with content providers to offer a range of streaming services, gaming platforms, and other media-rich value-added services to attract and retain customers.

4. Personalized and contextual services: Services that provide personalized experiences based on user preferences, location, and context are likely to garner attention and usage in the coming years. These services have the potential to predict and fulfill user needs in real-time by offering customized recommendations, location-based services, and AI-driven assistance.

VAS are designed to anticipate and address user preferences while also considering their location and context, which will likely emerge as a key driver of user engagement and satisfaction. As such, businesses and organisations investing in developing and deploying such services will probably benefit from significant customer loyalty, engagement, and revenue growth.

5. Security and privacy services: Operators can enhance their growth by adding security products to their portfolio. With digital threats constantly evolving, prioritising user security and privacy has become crucial. This can be achieved through identity protection, secure browsing, and advanced security solutions for mobile devices.

6. Partnerships and ecosystem development: Increased collaborations and partnerships among operators, tech firms, and other stakeholders are projected to establish comprehensive ecosystems that provide integrated services, thereby propelling MNO growth through VAS offerings as a revenue stream.

7. Enterprise solutions: Operators have the potential to broaden their array of business-oriented solutions by providing tailored IoT connectivity, cloud services, and managed solutions. This personalised approach can cater to various enterprise requirements.

Organisations operating in the mobile network operator sector must remain agile and adaptable to thrive in ever-evolving industry trends. Strategic innovation, particularly in the form of new revenue streams, is crucial in meeting customers’ changing demands and expectations. To this end, MNOs must comprehensively assess their current position and identify emerging technologies and alternative options to maximise their revenue potential.

Investing in future trends that customers may demand is essential, while partnerships with local and international companies can provide valuable opportunities to create distinctive service packages. A thorough understanding of customer preferences and their willingness to pay for value-added service delivery is imperative in developing these initiatives.

To enhance your understanding of the telecom industry’s transformation and the need for diversification, you can explore this study on telecom industry trends. For a practical knowledge of 5G within the industry and why messages are still important. You can also visit our blog to find comprehensive information about industry trends, challenges and GMS solutions. 

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