MVNOs: Turning silent roamers into active revenue streams with eSIMs

The travel industry presents both a significant opportunity and a challenge for Mobile Virtual Network Operators (MVNOs). The World Travel & Tourism Council predicts that travel and tourism will grow 3.5% annually over the next decade, accounting for 11.5% of global GDP by 2035.

However, this growth does not always translate into profit for MVNOs. Many of your customers may be "silent roamers."

Silent roamers are individuals who avoid using their mobile services abroad. This results in lost revenue for your business. 

To connect with silent roamers, you must understand why they avoid international connectivity and what solutions you can offer to address their pain points. eSIM technology can significantly help your business and expand your global reach.

What is a silent roamer?

Before discussing solutions, let's clearly define the problem: silent roamers. 

A silent roamer is a mobile subscriber who chooses not to use voice calls, text messages, or mobile data when traveling outside their home network. Instead, they rely on Wi-Fi and local SIM cards or simply disconnect to avoid the high costs and dreaded "bill shock" associated with traditional roaming. 

This common fear of roaming creates a significant untapped market for MVNOs, as these customers become invisible, generating no revenue while abroad.

Imagine Sara, who is traveling from Canada to Spain. She spends her trip constantly searching for free Wi-Fi in cafes or purchasing a local SIM card to avoid expensive roaming or a lack of connectivity. This customer, despite being a loyal subscriber at home, generates no roaming revenue for her MVNO during her international trip.

Why MVNOs struggle with capturing roaming revenue

Due to a lack of infrastructure, MVNOs face unique hurdles in monetizing the roaming market, which leads to substantial lost revenue. However, MVNOs can capture this revenue by partnering with the right eSIM provider to offer global connections.

Without integrating eSIM partnerships, MVNOs would struggle to capture silent roamers due to the high costs associated with:

• High infrastructure investment: Unlike Mobile Network Operators (MNOs), which own their physical infrastructure, MVNOs lease network capacity. While this reduces initial capital expenditure, they are stuck to MNOs' wholesale roaming agreements, which can be costly and inflexible. Investing in independent global roaming infrastructure poses a financial risk and burden for MVNOs.
• Global bandwidth costs: Negotiating and managing numerous individual roaming agreements with MNOs worldwide is complex and expensive. Each agreement has its own terms, conditions, and pricing, leading to significant administrative overhead and often high wholesale rates for data, voice, and SMS.
• Lack of control over roaming products: A lack of infrastructure limits an MVNO's ability to create flexible, customer-centric roaming products. These products would truly address travelers' needs for affordable and predictable connectivity.

The eSIM advantage: capturing silent roamers and boosting satisfaction

eSIM technology offers a significant market growth opportunity for MVNOs. It naturally fits within their offers and directly solves a common pain point for their customers. eSIM technology allows MVNOs to overcome traditional roaming challenges and unlock new revenue streams.

eSIMs offer an affordable and convenient solution that directly addresses why customers become silent roamers:

eSIMs provide a direct solution for MVNOs to offer international connectivity. Customers can purchase and activate an eSIM plan before or during their trip, directly from their MVNO's app or website.

Instant activation and digital delivery eliminate the hassle of finding local SIMs or dealing with expensive roaming. MVNOs gain the ability to offer tailored, competitive data plans, giving travelers more control and transparency over their spending.

Imagine Sara, our Canadian traveler, exploring Spain. Instead of looking for a solution outside her mobile carrier's offers, she can now browse affordable data packages for Spain offered by her MVNO before leaving home. Once she lands in Spain, she simply activates the chosen eSIM profile and stays constantly connected.

eSIMs also open opportunities for MVNOs to offer different connectivity plans, specific regional bundles, or even value-added services like international calling, further enhancing their offerings.

5 benefits eSIMs can offer MVNOs

eSIMs offer a natural extension to MVNOs, helping them grow their business and service offering. By adding eSIMs to their services, they can benefit from:

1. Product differentiation: Offering eSIMs allows MVNOs to stand out from competitors by providing a modern, convenient connectivity solution that many traditional providers do not.
2. Additional revenue streams: By addressing the needs of silent roamers and attracting new international travelers, MVNOs can unlock significant new income opportunities from connectivity plans sold abroad.
3. Customer satisfaction: eSIMs provide travelers with affordable, transparent, and hassle-free connectivity, directly improving their experience and loyalty to the MVNO.
4. Less infrastructure investment: MVNOs can leverage existing eSIM provider platforms, avoiding the need for costly and complex investments in their own physical roaming infrastructure.
5. Global reach: Partnering with an eSIM provider gives MVNOs instant access to a vast network of international destinations, enabling them to offer services worldwide without individual agreements.

How Airalo Partners caters to MVNOs

Implementing eSIM technology doesn't have to be complicated. Partnering with an established eSIM provider can accelerate your market entry. Airalo Partners empowers MVNOs to leverage eSIM technology and capitalize on the global travel market. 

When you partner with us, you gain access to the world's leading eSIM provider for unparalleled reach and options for your customers:

• Global coverage and eSIM package options: Offer your customers global coverage in over 200 destinations with more than 900 eSIM packages to fit any traveler's needs.
• Flexible eSIM packages: We offer diverse roaming packages, including data-only, data/voice/SMS, and regional and global plans.
• Partner support: Receive best-in-class partner support and resources to ensure a smooth integration and ongoing success.
• Safety and data protection: Benefit from industry-leading safety and protection measures like SOC 2 Type II, PCI DSS, GDPR, and more, ensuring your customers' data is secure.

Airalo Partners helps bridge the gap between your customers' connectivity needs and the infrastructure required to capture revenue and boost customer satisfaction.

Ready to transform silent roamers into active revenue streams?

Join Airalo Partners today and seamlessly integrate global connectivity into your offerings. Fill the market gap and give your customers the reliable, affordable international service they've been looking for.

FAQs

What is a silent roamer? 

A silent roamer is an individual who avoids using their mobile services while traveling internationally, often due to high costs or fear of bill shock, resulting in lost revenue for their MVNO.

How does eSIM technology help MVNOs capture roaming revenue?

eSIMs allow MVNOs to offer digital, instantly activated connectivity plans directly to customers, eliminating the need for physical SIMs or expensive traditional roaming. This gives travelers affordable, transparent connectivity options.

What benefits do MVNOs gain by partnering with an eSIM provider like Airalo Partners? 

MVNOs gain access to a global network of eSIM plans, flexible offerings, dedicated support, and robust security, enabling them to easily enter the international roaming market and attract silent roamers.