Basically, you buy packages from telecom companies in bulk and resell them to your customers at a retail price. In this case, you are referred to as a Mobile Virtual Network Operator. Let’s demystify this technical jargon and break everything down in detail.
What is a Mobile Virtual Network Operator?
A mobile virtual network operator (MVNO) is a communications services provider that does not own the network infrastructure over which it provides services to its customers. It enters into an agreement with a Mobile Network Operator (MNO) to obtain bulk access to services at wholesale rates, then sets retail prices independently. Basically, an MVNO purchases capacity from an MNO at wholesale costs and resells it to customers at reduced retail costs. This is because they do not have to pay frequency spectrum licenses and they haven’t any infrastructure to create. MNOs, like Verizon Wireless, T-Mobile, Africell sell to MVNOs as a result of them having an additional capability that is unused. Instead of making losses, they make a tiny profit by offloading capability in bulk at wholesale costs to MVNOs. MVNOs virtually operate on one or more of the Mobile Network Operator’s networks and use the technology of the MNOs to offer consumers like you and me the exact same coverage but for a cheaper price. Also, they usually supply postpaid plans on a subscription basis. The sales and client service is also handled directly by the MVNO or by one more entity known as the Mobile Virtual Network Enabler (MVNE). These focus on selling and administering mobile services. Related Article: UCC Base Stations Taking Internet to Economically Unviable areas There are many MVNOs in the world. Some operate on only one network while others connect to more than one network offering more choices and coverage options. Smart Telecom, K2 Telecom, Sema Africa, Equitel among others are examples of MVNOs in Africa.
Differences between MVNOs and MNOs
In conclusion, MVNOs buy voice and data packages in bulk from the MNO and sell it to their subscribers. Have you used a Mobile Virtual Network Operator before? What was your experience compared to Mobile Network Operators? Share with us in the comments section below.
