Business Model Choices Can be Subtle

In real life it often is hard to tell which firms in the connectivity business might use platform business models and which do not. 

Flexiroam sells roaming mobile service in some 200 countries, supplied by the networks of about 520 mobile operators. Specializing in services for business travelers, Flexiroam builds on e-SIM capabilities, as does Truphone. 

But Truphone says it is one provider to light up over 190 countries. Flexiroam allows customers to create white label solutions, for example. Flexiroam uses the term ecosystem to describe its approach. Granted, any firm can say anything about itself, but there is a difference here. 

Truphone says it is a “provider.” Flexiroam emphasizes “ecosystem.” Truphone is itself a branded service provider. Flexiroam is more of an app that allows suppliers to match their offerings with potential customers. 

There are lots of subtleties. Both firms might use an “asset light” model that is true of both MVNOs and marketplaces. Both rely on e-SIM capabilities to simplify operating costs and fulfillment. 

But Flexiroam is more accurately uses a platform business model, while Truphone does not.