Web3 and MVNOs: What can MVNOs learn from Web3 and Crypto?

I have been in Crypto for a long time. It truly is the Finance Wild West that everyone thinks it is. I have made money, lost money, been hacked, felt the FOMO and FUD. I have been a day trader and bag HODL and even been an early whale in new tokens, and it never ended well other than UNIFI (bless the development team). So, it is fair to say that I know my way around this space. (If none of the terms above mean anything to you, that’s ok; you probably have been saved much stress from this highly volatile and manipulated industry.)

However, there is one thing that we can take from this space, that I think we can learn from to bring more value to MVNOs: crypto’s obsession with ‘community’ and the belief in helping each other to learn and win together. I think the Mobile Virtual Network Operators (MVNOs) community needs to go in the same direction.

Web3 and MVNOs begin to intersect and create new possibilities. This convergence is continuing to open exciting opportunities for innovation, improved customer experiences, and unique business models. I have spoken to 30 MVNOs this year alone. Only 3 of them had a Crypto focus, so 10%, and since I know the space, I didn’t think that it would succeed.

Why is that?

There is still too much mistrust; digital currencies can easily get manipulated by a single post by the world’s richest man (promoting a token his son has), and millions of people buy in. Some make money and some don’t, perpetuating the thinking that the whole crypto game is rigged and it’s a massive Ponzi scheme. So, another interesting question to ask ourselves is ‘How do you make a successful MVNO collaboration with Web3?’

About Web3

Web3 represents the next generation of the internet, built on decentralized technologies like blockchain. Key aspects of Web3 include:

• Decentralization: Moving away from centralized platforms to distributed networks
• User ownership and control of data
• Token-based economics
• Increased privacy and security

All the above don’t come without risk since it is an unregulated industry. Can Governments police the Internet? They try! So how do you think they can police Web3?

They can’t. So how does a regulated environment like Telco merge with Web3?

I propose that it can, if we adopt the fundamental principles of Crypto and pull together as an MVNO community and make it happen together, providing governance and standards which Telcos are well known for.

So, I would suggest the MVNO community continue to do what we do best, and that is Disrupt. We do that already well today, keeping the Telcos on their toes and with access to Cloud-based SaaS solutions that can scale with the lowest entry costs that the industry has ever seen, and this is why you’re seeing many successful MVNOs (just like the Spanish market – it’s booming). Take the US market where we have many successful and big MVNOs which are mostly owned and operated by MNOs. The MVNO market is also seeing strong growth, expected to hit $173.1 billion by 2032 at a CAGR of 8.2%. Web3 with key factors contributing to this growth will be in innovation (AI), new services and business models to increase revenues. Keeping to the same concept of community, it is also key that we grow together and work in revenue-sharing business models.

The Web3 MVNO: A Powerful Combination

We are already seeing the emergence of Web3 MVNOs that leverage blockchain and decentralized technologies to offer unique mobile services. Some key developments include:

1. Decentralized Identity (DID): Web3 MVNOs can provide users with decentralized digital identities, enhancing privacy and giving customers more control over their personal data.
2. Cryptocurrency Integration: Enabling crypto payments, rewards, and financial services directly through mobile plans.
3. Enhanced Security: Leveraging blockchain for secure billing and fraud prevention.
4. Tokenized Incentives: Using crypto tokens to reward customers for network participation or data sharing.
5. Decentralized Network Sharing: Potential for peer-to-peer bandwidth sharing and more efficient network utilization.

One that I admire and is leading the space is Fliggs Mobile. They claim to be the first all-digital Web3 MVNO, offering an integrated non-custodial wallet and decentralized ID.

Imagine you pay your monthly bill and are provided with rewards paid in BTC. 5% of your $29.99 is earned (without mining, how cool) and is deposited in your own wallet every month. In the last week of October, BTC hit an all-time high; it certainly wasn’t the conference in London where the identity of Satoshi was to be revealed. Apparently, that could not happen because the proof (the laptop for the presentation) had technical issues (you can’t make this stuff up if you tried!)

I for one hope that Fliggs is successful. BTC fluctuates, so having a Mobile Plan for 6 months and in parallel with a good bull run, maybe you can use your tokens to get a free year of mobile service. Fliggs could also create and reward its customers with their own token or in the customer’s token of choice. It would be great to get a Crypto influencer behind the brand, and you never know, the token might ‘pump’ and have a good run without the infamous ‘rug pull’. Not to be cynical, but if Fliggs is successful, will it just be gobbled up by an MNO? History tells us that successful MVNOs generally are. But if Fliggs has a solution of wallets and rewards that is re-usable and they’re willing to share that, we could see a rise in more Blockchain Telcos. But the basic question remains: ‘Who is the target demographic for such plans?’ or like SaaS and Cloud, will this just become the future new norm?

I am rooting for Fliggs and look forward to implementing MVNOs on Web3 and learning from all the challenges that come with it. (PS-if you are a Fliggs subscriber – don’t forget to declare these assets on your tax returns…!).

Considerations For the Future

The integration of Web3 technologies with MVNOs has the potential to revolutionize how we think about mobile services as it introduces new opportunities to reach customers.  I advocate for a community approach where we pull together as experts in MVNOs and provide guidance and standardization.

Challenges remain, including regulatory hurdles, user education, and technological integration. However, the convergence of Web3 and MVNOs represents an exciting future, promising to deliver more user-centric, secure, and innovative mobile experiences in the years to come. As this space evolves, both established telecom players and startups will need to closely monitor these developments to stay competitive in the rapidly changing mobile landscape.