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Glossary

What is Mobile Virtual Network Operator?

A mobile virtual network operator or MVNO refers to a wireless communications service reseller.

An MVNO hires wireless capacity from a third-party mobile network operator (MNO) at wholesale prices and resells it to consumers at cheaper retail prices under its own brand. MNOs such as Verizon Wireless and T-Mobile sell to MVNOs because they have extra capacity on their networks that would otherwise go unused. Rather than losing money, the MNO makes a little profit by selling capacity in bulk at wholesale prices.

MVNOs may be able to reduce their retail pricing to some level since they do not have to pay for radio frequency spectrum licensing and do not have to build or maintain equipment. Because MVNOs have little overhead, they may spend a lot of money on marketing to increase their chances of selling consumers' minutes.

MVNOs generally provide subscription-based prepaid cellphone plans. Sales and customer service may be handled directly by the MVNO or by a third party known as a mobile virtual network enabler (MVNE). Companies that specialize in marketing and managing mobile services are known as MVNEs.

What Does a Mobile Virtual Network Operator (MVNO) Do?

MVNOs do not invest in mobile network infrastructure. But, they must provide their customers with other vital services. Well, here is a list of a few services that help MVNOs transfer value and provide enjoyable brand experiences:

  • Promotion of products and marketing
  • Handling invoicing and billing of clients for services 
  • Registration of network subscribers
  • Balance checks, network top-ups, customer assistance, and SMS capabilities are all accessible as subscription services
  • SIM cards and mobile phones are examples of assets that are distributed

What are the Key Reasons that Mobile Network Operators Require MVNO?

Here are two key reasons, why mobile network operators require mobile virtual network operators. So, let’s come to the points directly.

1. An Opportunity to Communicate with Non-targeted Populations:

Mobile operators, like other businesses, are always looking to grow, although this may be tough at times. One method is to seek out partners with large customer bases. Additionally, these partners may use their brand loyalty to position themselves and offer additional mobile network services to their customers.

2. Use Infrastructure to Produce New Revenue Streams:

Furthermore, mobile network infrastructure can often handle more user requests than it has available at any given time. Also, this opens up the opportunity for mobile carriers to sell surplus bandwidth to MVNOs, allowing them to generate revenue by selling infrastructure access.

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