Mobile virtual network operator

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Lua error in package.lua at line 80: module 'strict' not found. A mobile virtual network operator (MVNO), or mobile other licensed operator (MOLO), is a wireless communications services provider that does not own the wireless network infrastructure over which the MVNO provides services to its customers. An MVNO enters into a business agreement with a mobile network operator to obtain bulk access to network services at wholesale rates, then sets retail prices independently.[1] An MVNO may use its own customer service, billing support systems, marketing, and sales personnel, or it could employ the services of a mobile virtual network enabler (MVNE).[citation needed]

Background and history

The emergence of the MVNO model in various markets worldwide has varied in response to local factors.[citation needed]

In some markets, the MVNO concept came about as the result of regulatory intervention. Regulators wished to force established mobile network operators to offer wholesale access to their network to ensure robust competition to benefit the consumer. For example, in Scandinavia, significant market power existed for early entrant mobile network operators. Regulators there concluded that the MVNO model would be a time efficient and cost-effective route for telecoms companies to enter the market and therefore bring increased competition. The MVNOs in Scandinavia ended up having a market share above 10%.[2]

In other markets, mobile network operators responded to market opportunities to offer their excess capacity at wholesale rates to other entities in an effort to bring in incremental revenue on what would otherwise be unused network capacity. The efficiency is obtained by the nature of the MVNO business model. An MVNO incurs no significant capital expenditure on spectrum and infrastructure and does not have the time-consuming task of building out extensive radio infrastructure, as this remains the responsibility of the host network operator. In some cases mobile network operators operate their own wholesale MVNO business unit to complement their retail model.[citation needed]

An early MVNO was created in Denmark by Tele2 and Sonofon (now Telenor Denmark) in August 2000,[3] and subsequently rolled out in several European markets. Under the agreement, Tele2 was allowed access to use Sonofon’s network for the provision of mobile services and roaming agreements. This model formed the basis for the cooperation between Tele2 in Sweden and Telia, created when Telia failed to obtain a 3G license in their home market.[citation needed]

The first commercially successful MVNO in the United Kingdom was Virgin Mobile UK, which was launched in 1999.[4] This was followed by the United States licensee of the Virgin Mobile brand. Initially an independent company, Virgin Mobile USA was eventually acquired by its host mobile network operator, Sprint Nextel, for approximately US$483 million.[5]

Around the world

As of June 2014, 943 MVNOs and 255 MNO sub-brands were active worldwide. This represents a total of almost 1,200 mobile service providers worldwide hosted by MNOs, up from 1,036 in 2012,[6] which in turn are operated by 503 companies (some companies operate multiple MVNOs in the same country).[7] The largest multi-country MVNO is Lycamobile, which operates in 19 countries which is enabled by PLINTRON - World's largest MVNE.[citation needed]

MVNOs target both the consumer and enterprise markets. The majority of MVNOs are consumer-focused and most have a focus on price as their selling point; customers of major carriers spend about 3.4 times as much money on their service as MVNO customers.[8]

In addition to traditional cellular voice and messaging services, in 2014, 120 MVNOs also were offering mobile broadband services.[9] In Africa, Uganda has registered three MVNOs so far, some having their own network infrastructure within major cities, but acting as an MVNO out of these cities.[10]

Light, Heavy, and Full MVNOs

MVNOs are distinguished by their commitment to managing their own technology (Operational Models).[11] These can range from only a small amount of technical implementation (Light or Thin MVNOs), through more complete technical implementations (Heavy or Thick MVNOs) up to a complete network implementation operating essentially the same technology as a mobile network operator, minus the radio base stations (Full MVNOs).[citation needed]

Regulation

In 2003, the European Commission issued a recommendation to national telecom regulators (NRAs) to examine the competitiveness of the market for wholesale access and call origination on public mobile telephone networks. The study resulted in new regulations from NRAs in several countries, including Ireland and France forcing operators to open up their network to MVNOs.[citation needed]

In the Middle East, Jordan's TRC has issued its first MVNO regulations in 2008 facilitating the entrance of the first MVNO in the region.[citation needed]

The Saudi government is making preparations to permit MVNO services in the country,[12] and local mobile network operator, Mobily has awarded an MVNE management contract to India’s XIUS.[13]

In Brazil, the MVNO was regulated by Anatel, the Brazilian Agency of Telecommunications, in November 2010. As of September 2014 the combined market share of all Brazilian MVNOs was just 0.04%.[14]

In Thailand, five MVNOs where given a Type II license to operate as MVNOs on the 2100 MHz 3G network of state telecom operator TOT Public Company Limited (TOT) in 2009. As of December 2014 three of the original five MVNOs are still in service.[15]

See also

References

  1. ↑ " Why are MVNOs so hot right now? Thank the carriers". Kevin Fitchard, GIGAOM. Jun. 25, 2012
  2. ↑ Analysys Mason, IS THERE A GLASS CEILING FOR MVNOS?, 17 May 2015
  3. ↑ ITU, Competition policy in telecommunications: The case of Denmark, 17 May 2015
  4. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  5. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  6. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  7. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  8. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  9. ↑ Lua error in package.lua at line 80: module 'strict' not found.[dead link]
  10. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  11. ↑ One Development, Basic MVNO concepts, 17 May 2015
  12. ↑ Oxford Business Group, MVNOs signal change for Saudi telecoms, 17 May 2015
  13. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  14. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  15. ↑ Yozzo.com, Thailand’s MVNO market 2014, 17 May 2015

External links

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