The cell phone service industry is dominated by huge, established service providers. Undoubtedly, entrepreneurs seeking to start off a business in this sector will face enormous competition. Given the number of cell phone users, there is substantial profit from being a service provider, but getting around the established competition is often the main challenge.
Choose your business route. There are two options into the cell phone service business; one is to acquire a spectrum license and to create a mobile network. Alternatively, you can embark on the now popular mobile virtual network operators (MVNO). The first option is expensive because it requires the installation of large-scale infrastructure, as well as licensure. It is also not economically sound for small business providers because of the incumbent competition from large providers.
Take the MVNO alternative. Consider utilizing the existing networks of incumbent operators and subsequently gaining ownership to branded mobile services. Build a unique mobile and Web community of supporters and members by using a third-party platform Mobile Network Operator.
Find Mobile Network Operator that can host your cell phone service. Some established mobile network provider includes Sonopia, Verizon Wireless, AT&T and others. Present your chosen host with a business and marketing proposal to secure the deal. Show in your proposal your capacities to run a cell service provider business on their network. Your marketing plan should also indicate how you and the main operators will secure a return on investment or a positive cash flow.
Sign a commercial contract agreement with the mobile network operator. The form and content of this agreement will depend on the specific nature of the deal. It is an official agreement allowing you to operate on the host’s network and it also details the financial and revenue aspects of the partnership.
Set up your business. Marketing, generating a customer base and a substantial return on investment are some of the core business functions that you must attend to. Adhere to both business and industry regulations to avoid costly penalties.