You might have heard the phrase Mobile Virtual Network Operator Type and wondered what it means and how it might affect you and your business.  There are several different Mobile Virtual Network Operator Types, and you probably know of several of them, and use a few of them daily. When you turn on your mobile phone, make calls, send text messages, and connect to the network, you could be connecting to an MNO, or an MVNO and we are here to help you to understand the difference.  

Whilst MNOs are more popular, and generally bigger businesses, they lease their technology to smaller businesses so they can operate.  Have you heard of the O2 mobile network? 

If the building is an MNO, the offices inside the business, renting space, using the infrastructure available, and paying a monthly payment for the privilege are MVNO’s. These Mobile Virtual Network Operator Type of businesses rent from the bigger companies, so they can operate on the infrastructure, take advantage of the technology, and use the connections to boost their brand.

Renting an office space on First Avenue, or near Hyde Park, or in a prime location gets your business noticed.  Using a Mobile Virtual Network Operator Type of business to boost your brand and get more customers is the way that smaller mobile phone networks grow their network and customer base.

What is an MVNO? 

A Mobile Virtual Network Operator Type is a service provider of wireless communication and technology. Unlike MNOs they do not own any hardware or infrastructure, they lease it. They piggy-back from the big companies so they can get their unique product to the market and add value to the MNOs through their technology.

Mobile Virtual Network Operator Types rent at low rates from MNOs and buy in bulk or get wholesale rates, so they get access to minutes, infrastructure, cell towers, new technology, and better connectivity. They charge a premium for their unique technology whilst using the infrastructure of the MNO so that the Mobile Virtual Network Operator Type can run its business. 

There are smaller networks of mobile phone providers, like Tesco Mobile, Virgin Mobile USA, Lycamobile UK, GiffGaff Ltd, and many more who operate as Mobile Virtual Network Operator Type businesses.  They are all using the MNOs network, cell towers, connectivity, and technology to boost their brand. 

In the USA AT&T sells a lot of real estate on its network to Mobile Virtual Network Operator Type of businesses and they get the benefit of the AT&T network.  In the UK O2 is the MNO that provides Mobile Virtual Network Operator Type businesses space on its network and access to its infrastructure to boost their business.

You can clearly see the difference now between the bigger MNO companies that provide and support, and make money from, the smaller Mobile Virtual Network Operator Type businesses who are using their network to gain market share of the versatile and profitable communications space.

What makes a Mobile Virtual Network Operator Type of business?

There are four main types of Mobile Virtual Network Operator Type business. They all have a slightly different business model, and they all operate in the similar space.  A Mobile Virtual Network Operator Type usually have the following characteristics and are usually well known.

They are usually well-known brands (Tesco Mobile, Asda Mobile, GiffGaff) who have access to a large customer base and are well known, but now they are venturing into the communications sector from their core base.  These customers and their existing businesses allow them to sell these products at a cheaper price and build their products.

Their loyal customers are often in their shops, or on their websites as a captive audience so it is easy to market to them and push advertising to them. These Mobile Virtual Network Operator Type businesses have the loyal customers and are buying other products from them, so they are attracted to vouchers and other products within the same brand.  We have all heard of Tesco’s, so we all know Tesco Mobile.  When we are doing our monthly shop in Tesco’s our kids might need a new phone, or we might need some mobile phone credit so we can purchase both at the same time.  Building up a VIP First customer following is easy for these big brands. They are already well known.

These big brands are well-known and have capital to deploy on their outreach into a new sector. They know that they need customer service teams, marketing, sales, and to make their product known to their audience.  This could involve overseas calling, or local advertising, but they have the budget for their project. The Mobile Virtual Network Operator Type of businesses simply don’t have the technology and the network of the big companies in the space, so they need access to the phone lines, the cell towers, the networks, so that people can use their phones.

Looking specifically at the Mobile Virtual Network Operator Type called Tesco Mobile, it is a big brand, well-known, and popular among a demographic. They have a captive audience at checkouts, car parks, and around the huge shops offering thousands of people every day their grocery shopping.

They can offer cheap rates, they have the money to invest, the brand, and they can give discounts that other providers would not be able to afford. But they need an MNO and their technology and network, so they rent from O2.

What do Mobile Virtual Network Operator Type’s offer?

Mobile Virtual Network Operator Type businesses do not need to invest in technology, or network, or cellular infrastructure, they are buying that from an MNO. They need to invest in products and services that they can add on to the MNO providers, or that they can sell to their customers. 

The Mobile Virtual Network Operator Type might offer different products, like no monthly fee contracts, or pay as you go SIM cards.  They might specialize in landline cellular communication, so that people have a landline on their mobile phone.  They could add additional services to the existing providers, like business calls, invoice facilities, call forwarding services, international calling, or other technology at cheaper and more efficient rates. They could be very effective in their niche and with excellent knowledge of a certain product, they need an MNO to help them to launch.

Bulk SMS, or direct messaging, mail drops, voicemail services, and other such Call center services on the customers mobile phone are types of Mobile Virtual Network Operator Type businesses that work well, but the major carriers don’t have.  Where a company can invest in their own technology and services, and then add a telecom element to their business, they are operating in the Mobile Virtual Network Operator Type business.

What types of Mobile Virtual Network Operator Type are there? 

There are 4 types of MVNO.

• Branded Reseller 

A Branded Reseller is a Mobile Virtual Network Operator Type that invests very little in their technology and services, they use simple technology to attract their customer base and offer simple solutions.  This Mobile Virtual Network Operator Type might be offering data services, or Roaming packages, or SIM cards to travellers.  This is a reselling opportunity to enter the communication space, with a simple offering, usually to test the waters.

• FULL MVNO

This type of Mobile Virtual Network Operator Type invests heavily in marketing, sales, customer service, and offers the full range of telco products and services. Theyhave a lot of access to the MNO network, and they often have their own client base.  

2 examples of Full MVNO are Tesco mobile, and Vialis. Vialis is a electricity and gas company in France that has ventured into the Telco market, using its large and loyal customer base to take some market share.

• Light MVNO

This is in the middle of Branded resellers and full MVNOs. This Mobile Virtual Network Operator Type usually offers local and international calls, mobile plans, SMS packages, and telco products, including marketing services and back-office support. They are going to be a full MVNO one day! 

• Network Enablers

These Mobile Virtual Network Operator Type are also known as MVNEs or Mobile Virtual Network Enablers. They are the middle services, connecting networks, devices, offers, and products.  They help light MVNOs to become full MVNOs and they know the sector well, so they know how to connect, where to advertise and how to launch their product and brands.  They are the brokers of the sector, introducing people and products to each other and earning commissions on transactions.

Mobile Virtual Network Operator Type bring value to the sector and help growth and expansion. They introduce new technology, they bring in more customers and they help the sector remain competitive due to bring down prices of the bigger networks, whilst using their services.