MVNO stands for Mobile Virtual Network Operator and refers to a type of mobile service provider that offers mobile services without having the physical network infrastructure.
The first Mobile Virtual Network Operator (MVNO) services started in the telecommunications industry back in December 1999 with the launch of Virgin Mobile in the UK.
What is completely normal today was once unimaginable – Virgin Mobile was able to provide competitive mobile services without the need for heavy investment in physical network assets.
This has led to the creation of new business models and the recognition of opportunities by companies. Operators such as Tello, U.S. Mobile, Visible, Mobile X, Mint, etc., didn’t even exist 10 years ago.
Today, MVNOs are the main operators in approaching and implementing new generation by providing flexible and cost-effective mobile services to millions of customers worldwide.
What is an MVNO?
In its simplest form, an MVNO is a retail business that relies on the infrastructure and most other things provided by the wholesale Mobile Network Operators (MNOs), which are purchased via a commercial agreement to access network services at wholesale rates and then sell to end-users.
See the differences between MNOs and MVNOs: MNO vs MVNO: What is the difference?
What to Look for in an MVNO?
Here are some important points to consider:
- Coverage: It is important to have strong signal strength in areas where you use your phone frequently. Good coverage is essential for reliable calls, texts, and data services.
- Monthly Price: MVNOs are known for offering competitive prices. To find the best value based on your individual usage, it’s important to evaluate monthly plans and any additional costs or fees.
- Perks: Many MVNOs offer benefits such as free international calls, rollover data, no contracts, or bundled services like streaming subscriptions.
Different Types of MVNOs
MVNOs come in all shapes and sizes:
Full MVNO
- Operates with its own core network infrastructure
- Has more control over its services
- Manages its core network, OCS + VAS, billing & CRM, customer care, marketing, and sales)
Light MVNO
- Uses the core network of an MNO
- Manages its own SIM cards, branding, and customer service
- Only manages marketing and sales independently.
Branded Resellers
- Sells services under their own brand name
- Relies entirely on the MNO’s infrastructure and network management
- Focuses primarily on marketing and customer relationships
Network Enablers
- Provides a platform for other MVNOs to operate
- Offers services like billing, customer management, and network integration
The picture below shows different types of MVNOs and how much they rely on an MNO.
You’ll get a better idea of how each type of MVNO integrates with or depends on different components provided by the MNO.
MVNO Strategy
Mobile Virtual Network Operators offer a range of mobile services, including voice calls, text messages (SMS), and postpaid mobile plans, from onboarding and eSIM/SIM activation to service provisioning, payment, customer service, and 24/7 support.
They have the opportunity to achieve significant growth and profitability while building a loyal customer base by delivering consistent and exceptional customer experiences at every interaction point.
We mention eight key customer segments that have driven the growth of MVNO players across the world:
Discounts
Target Customers: Price-sensitive consumers looking for the most cost-effective mobile plans.
These MVNOs offer competitive pricing and simple, no-frills plans. They often focus on lower-income households, students, and budget-conscious individuals.
Strategy: They achieve low prices by minimizing overhead costs and leveraging bulk purchasing agreements with network operators.
Specialist Data
Target Customers: Heavy data users, such as gamers, streamers, and tech enthusiasts.
These MVNOs provide high data allowances or unlimited data plans with high-speed connectivity, focusing on superior data service rather than voice or SMS.
Strategy: They often bundle their services with features like data rollover, zero-rating for specific apps, and advanced data management tools.
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Retail
Target Customers: Shoppers and consumers already loyal to particular retail brands.
MVNOs under this category are often extensions of large retail chains offering mobile services as an added convenience to their existing customers.
Strategy: These MVNOs leverage their parent companies’ brand loyalty and extensive distribution networks.
Ethnic
Target Customers: Ethnic communities and immigrants.
These MVNOs cater to specific ethnic groups by offering international calling plans, customer service in multiple languages, and tailored marketing strategies.
Strategy: They often provide affordable international calling rates to specific countries, making them attractive to immigrant populations.
Business
Target Customers: Small and medium-sized enterprises (SMEs) and corporate clients.
These MVNOs focus on providing business-oriented services such as multiple-line management, custom data plans, and robust customer support.
Strategy: They often offer value-added services like mobile device management (MDM), secure communication tools, and tailored customer service.
International/Roaming
Target Customers: Frequent travelers and expatriates.
These MVNOs offer competitive international roaming rates, global SIM cards, and services tailored to travelers.
Strategy: They partner with multiple network operators worldwide to offer seamless connectivity and affordable roaming packages.
Youth/Media
Target Customers: Younger demographics, including students and young professionals.
These MVNOs offer plans that include free access to social media platforms, music streaming services, and gaming data.
Strategy: They often use vibrant branding and marketing strategies that appeal to younger audiences, including sponsorships, events, and influencer partnerships.
Bundled
Target Customers: Consumers looking for comprehensive service packages.
These MVNOs provide bundled services that combine mobile with other products such as internet, television, and landline.
Strategy: They leverage bundled offerings’ convenience and cost savings to attract customers seeking all-in-one solutions.
Explore different MVNOs all around the globe and their phone plans: The Best MVNOs and Plans by Country (List)
How to Start an MVNO?
The global market size of Mobile Virtual Network Operators was worth 84.6 billion USD in 2023, and it’s expected to grow at a compound annual growth rate (CAGR) of 6.7% to reach 116.8 billion USD by 2028.
The digital transformation is really shaking things up for businesses worldwide with new enterprise mobility models, all thanks to the growing demand for mobile services.
The way MVNOs operate is also changing because of the quick adoption of telecom trends, such as cloud-enabled services, APIs, automation, and the rise of ‘As-a-Service’ platforms for communications and mobile networks.
We can help you push your MVNO game one step further by providing comprehensive MVNO billing software for mobile, fixed, and digital services.
Tridens Monetization ensures seamless billing and monetization, allowing you to focus on delivering exceptional service to your customers.
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