MVNOs need sharp negotiation skills to steal a march on the expected boom in satellite. Graystone Strategy’s masterclasses will show you how.

We’re starting to see satellite take off in countries around the world where regulators are granting permission.

Top of mind is the UK, where, following Ofcom approval, O2 Satellite is first out the blocks with its Starlink backed service, and Vodafone has inked a deal with AST Space Mobile. In the US, Skylo, Verizon’s direct-to-device (D2D) partner, is the latest name to be seeking FCC approval for services to support IoT, smartphones and wearables.

There are some strict guidelines to protect airspace when granting the use of existing spectrum to deliver D2D. But they clearly aren’t standing in the way of claiming a market ‘first’.

Regulators are working out their exact position on how satellite will work in their jurisdiction. But it’s possible some will follow Ofcom’s lead and allow satellite without the need for additional licencing of spectrum.

No matter the position, many regulators will know that D2D will help solve coverage gripes that are commonplace in rural areas, so I expect we’ll see a pragmatic approach in most cases to allow a rush of sign-ups. It really will be a gamechanger for small islands through to vast land mass countries and continents.

It’s why I think MVNOs need to get in on the act now. It’s a huge untapped market and one regulators are willing to commit to.

But MVNOs can only join the ‘space race’ if they have a wholesale deal that will support it. I’m talking about having a clause that gives market parity on any existing and new technology their host launches.

Parity as standard

At Graystone, our best practice guidance is to negotiate parity as standard. Getting the right clauses in place is a topic we emphasise in our masterclasses for good reason. It’s a critical building block for launch and future growth.

Sadly, many MVNOs who take on negotiations themselves don’t achieve this parity clause, and it can freeze them out of innovation further down the line.

Right now, I’d be advising every MVNO to check their deal, and provided they do have parity, I’d be encouraging them to ask when a satellite product will be available for them to launch.

Time will be of the essence and knowing you have the access to satellite opens the door to product innovation and a potentially a whole new market of customer – consumer and enterprise. The same goes for 5G, 6G, eSIM… the list goes on.

Preferential pricing isn’t a given

A word of caution though. A clause on parity is not a slam dunk on the wholesale price you’ll get. And even when you do get a wholesale price, it needs to be one that can underpin a product customers will buy.

It’s vitally important to remember that MNOs won’t commit on what might come to market and its price, so pricing will only be set as services are developed. And, as there’s no established precedent for satellite, then my advice, if you have a parity clause, is to prepare for a price review and renegotiation.

If you don’t have a clause, then brace for the likelihood you won’t be given a seat at the table. The MNO is well within their rights to exclusivity, at least to begin with. Not only that, who’s to say the MNO hasn’t got an exclusivity clause in its contract with the satellite provider? If that’s the case, negotiations will be complex.

As we’ll go over in our masterclasses, it’s always good to know what’s on the horizon with your MNO and the timeline for reviews. Make a note to ask for a discussion on parity and rates when your contract next comes up for renewal.

Premium and exclusive models

We should also expect premium service models to come to the fore. I fully expect MNOs to develop out of bundle charging or mega packs of data add-ons to appeal to a broad customer base and get maximum traction quickly. And I think B2B will be a major priority, which is why I encourage MVNOs to think broadly too. How can their brand stretch?

MNOs need to convert their deals with satellite provider into revenue

I must also add that MVNOs without parity shouldn’t lose hope. Let’s not forget, MNOs have the added challenges in negotiating access and pricing with satellite providers, which they need to convert into income.

There is always space to wow a wholesale partner with a new proposition, especially if you can get it into market quickly. As we consider in our masterclasses, operators will be keen to monetise any technology, including their satellite deals, and do so in multiple ways. They will be all ears if you can hit a sweet spot for revenue.

So, whatever your situation on contract clauses, start evaluating what a market offer could look like, and how you’d use it to grow your brand, and which customer segments it would serve. We look at this process in our masterclasses, and how to sharpen your focus and approach in negotiations, regardless of whether you have parity or not.

Find a balance

There’s huge potential for additional value here as you’ll be giving people access to something that’s felt untouchable up to now. I think it’s a service people and businesses will be willing to pay for because being connected matters so much. Just make sure you get the balance right. If it’s too expensive, or too complicated to access, you will literally switch people off – another area we cover in masterclasses.

Get expert help now

This is where it can be beneficial to work with an expert like Graystone Strategy on segmentation, proposition development and pricing models. It will get you into a strong position to negotiate and help you go to market with confidence.

As the official training partner for MVNOs World, our masterclasses are invaluable for helping MVNOs understand how to shape their strategy and execution for these pivotal moments in our industry. Free to book, they are open to everyone attending the conference. So why not start your journey to satellite by booking a place today? BOOK NOW