An MVNO, an acronym for Mobile Virtual Network Operator, refers to a telecommunication service provider that does not possess its own network infrastructure. Instead, MVNOs lease network capacity from existing mobile network operators (MNOs) or telecommunication carriers and then provide wireless communication services to customers under their own brand name.
Operating within the framework of a pre-established network operator, an MVNO typically does not own any network assets such as mobile towers, spectrum licenses, or core network systems. Instead, they focus on acquiring airtime at wholesale rates from MNOs and then offering it to their own customers using their branded services, features, and pricing models. This enables MVNOs to provide mobile services without the heavy investments required for network infrastructure establishment.
MVNOs target specific market segments, often characterized by specialized customer needs or preferences, offering tailored services within those niche markets. They differentiate themselves by presenting unique pricing plans, innovative product offerings, or value-added services that cater to their specific target customers. Examples of MVNOs include companies that provide mobile services solely to senior citizens, students, or immigrants.
By utilizing existing infrastructure, MVNOs can enter the telecommunications market faster and more cost-effectively than if they were to build or maintain their own network infrastructure. However, MVNOs do not have direct control over the network, as they rely on the underlying MNO for network coverage and quality.
