What is MVNO?

A Mobile Virtual Network Operator (MVNO) is a mobile operator that does not own its own spectrum and usually does not have its own network infrastructure. Instead, MVNO's have business arrangements with traditional mobile operators to buy minutes of use (MOU) for sale to their own customers

Distinguishing Characteristics of the MVNO

Many are familiar with simple resellers of telecom services such as long distance, local exchange, and mobile network services. In contrast, MVNO's typically add value such as brand appeal, distribution channels, and other affinities to the resale of mobile services.

Successful MVNO's are those that position their operations so that customers do not distinguish any significant differences in service or network performance yet offer some special affinity to their customers. Unlike simple resellers, who often have little or no brand recognition, MVNO's are typically well known, well positioned companies, with a good deal of marketing clout. For example, Virgin Atlantic Airlines is a MVNO in the UK that uses its market recognition to position itself for selling directly to its airline customers and others.

Successful MVNO's will also be those that have ample financial resources and sufficient agreements with existing operators to provide a good service coverage area. Additionally, well-diversified independent MVNO's can offer a product mix that incumbent mobile operators can not match. For example, grocery store MVNO's could offer a package of MOU's and groceries.