As you’ve probably noticed, cellphones have become one of the hottest markets. Consumers seem better prepared to live without oxygen before they live without their phones. The businesses that specialize in providing these services are poised to benefit from this always-increasing demand. But you likely don’t have the resources necessary to build an entire network from scratch. Fortunately, you don’t have to. Mobile Virtual Network Operators, or MVNOs, purchase network access in bulk, then resell it to customers at retail. The outlook for MVNOs is strong, with experts predicting that the market will reach $75.25 billion by the year 2023.
What to Expect
If you’ve always wanted to start your own cellphone company, there’s no time like the present. But until recently, starting an MVNO was on the pricey side. Thanks to white-label providers, though, you can access prepackaged services that you can resell. Instead of having to work with service providers to make sure customers have access to all of the amenities they need, MVNO entrepreneurs can start selling right away. Some white-label providers even offer custom invoices and sales marketing packages.
The Cost to Get Started
If you’ve been interested in learning how to start a cellphone company, you’ve likely learned the cost can be above typical startup range. A white-label solution makes this more accessible, but you’ll still need at least $10,000 if you want all services provided. This includes the support solution you’ll need to manage your customers and handle billing. This doesn’t include the cost of hiring employees, leasing office space, getting a business license and other things traditionally associated with starting a business. If you don’t have the startup capital, you may be able to get a business loan from a local lender or search for investment funding.
Mobile Virtual Network Enabler
If you’d prefer to set things up on your own, you can utilize the services of a Mobile Virtual Network Enabler, or MVNE, which provides the network infrastructure and related services necessary to resell wireless services. If you’ve researched how to start a phone company, you likely already know that certification and implementation can be costly. For a new business, this can also be overwhelming, unless you know how to navigate all of these areas. An MVNE offers varying degrees of assistance, including consulting and applications. By entrusting providers to handle the technical end of things, you can focus on building and growing customer relationships and create a business that will continue long-term.
Stephanie Faris is a novelist and business writer whose work has appeared on numerous small business blogs, including Zappos, GoDaddy, 99Designs, and the Intuit Small Business Blog. She worked for the State of Tennessee for 19 years, the latter six of which were spent as a supervisor. She has written about business for entrepreneurs and marketing firms since 2011.