1. 1. Find a Niche That Can Scale When MVNOs focus on customer niches a tried and true strategy in todays wireless market can that really be seen as a liability? After all, the term niche player often is directed negatively at a company that is so focused on a subset of customers that it isnt likely to grow very much. No operator wants to announce to the world that it is purposely limiting itself now and in the future by addressing only a small segment of customers. And yet, niches are where communities can be built and loyal customers developed. The question, in terms of looking at the right niche to target, is looking for niches that can scale, says Peter Jarich, vice president of consumer and infrastructure for Current Analysis. Look at niches that are about trends, rather than a small set of users or demographics. As Jarich points out, much of the demographic differentiation has already been done, with international companies coming into the U.S. market to target foreign nationals or ethnic communities. Other market segments have also already been addressed, such as the consumers looking only for the lowest-cost service, or groups of consumers interested in certain forms of content. The challenge for operators then is to identify significant trends around which a service could be built. Jarich says security, for instance, is one such category because it builds on an interest and concern that isnt going away anytime soon. Focusing on aging customers or underserved communities is also more about addressing the underlying trends than simply looking at the customers as a niche segment. Additionally, other trends already being seen in the market are technology-based, such as a cost-conscious service in which the devices access Wi-Fi networks first, only switching to the cellular network when a Wi-Fi connection isnt available. MVNOs are gravitating to offerings such as a service oriented to Internet of Things interconnectivity, as well as regulatory-related offerings such as the LifeLine program in California. MVNO operators need to focus on building a community around their particular niche as they establish the target audience and provide the service. Addressing the unique needs of the service segment is key to building the affinity that leads to long-term customer loyalty. The good news for MVNOs is that thanks to their smaller size and audience targeting, they are in a better position to foster loyalty than their huge competitors. As Jarich notes, It is a lot harder to build loyalty when you are targeting 100 million people than when you are targeting a smaller segment and you are speaking to their needs rather than just saying here is a service for you. 2015 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization. For more information, visit wholesale.sprint.com Video also available at youtu.be/ZWKgPjzoWVY