Modelling of Key Success Factors for Mobile Virtual Network Operators in Indian Telecommunication Market

Abstract

Globally, mobile virtual network operators (MVNOs) are popular among subscribers in established MVNO markets of America, Europe and Asia-Pacific, where regulatory authorities have allowed them to operate. Their revenues and subscribers have grown fast during last few years. Globally, MVNOs had 134 million customers, with a revenue of more than 25 billion USD in 2014. The Indian government intends to allow MVNOs in the Indian telecommunication market. The government’s approval to allow MVNO’s will open up new opportunities for firms which intend to launch MVNOs. Given the impending introduction of MVNOs in India and its importance, this research article focuses on determining the key factors that will influence MVNOs in India. The study also attempts to identify inter-linkages among various factors and develops a model that would be helpful for industry and academia in getting a better understanding of factors that will drive MVNOs in India. Grounded theory was used to identify the key factors and total interpretive structural modelling (TISM) was used to understand the hierarchy amongst various factors and interpret the relationship amongst them. The identified factors were empirically validated using factor analysis. Key managerial insights were obtained by developing a model for the set of factors, specific to the Indian context. The hierarchical model developed during the study provides a better understanding about relationships between various factors of interest. The research findings can immensely benefit potential MVNOs in identifying the areas they should focus on in the Indian context. Findings report that factors, such as reservation of spectrum capacity by the government, spare radio spectrum, differentiated value-added services (VAS) offered by MVNOs, willingness of mobile network operators, competitive intensity, wholesale tariff regulation, MVNOs’ business strategy and retail tariff, will play a key role in MVNOs’ success in India.