Over the past 10 years, the Internet of Things (IoT) has radically altered industries with its ingenious applications. But without connectivity, even the most advanced IoT applications are useless. This is where telecom MVNOs come into play. You might have dozens of questions in your mind, such as, What exactly is an MVNO? How does it work? Don’t sweat it. Our experts at ComCode Technologies have addressed some of the key questions you have on this subject in this blog along with informative answers and explanations.
What is an MVNO?
MVNO stands for mobile virtual network operator. In contrast to mobile network operators (MNOs), MVNOs don’t have their own separate telecom towers. Instead, MVNOs have ties with various partners, including MNOs and roaming partners. Then they aggregate the services from those multiple partners into a unified solution that can help customers with their IoT use cases by offering connectivity.
In this partnership, the service provider rents capacity (minutes, texts and megabytes) from a third-party MNO, which controls the infrastructure. A written agreement decides the price paid by the operator for the asked capacity, and the operator is then entitled to build its very own business model to generate profit. Smart operators devise innovative bundles, packages and marketing campaigns that appeal to their niche or target audiences.
What are the MVNO types?
There are only three primary types of telecom MVNO that are employed in different nations.
- Branded resellers are regarded as the easiest and fastest MVNO type to launch. They adopt predetermined settings, tariffs, and bundles from MNOs and market them under their own brand logo and name, which means they focus solely on their customer care support, sales, and marketing strategies.
- Light MVNOs are also known as enhanced service providers or thin MVNOs. They have more freedom to establish and control applications and services, sales and marketing efforts, rating and billing, and customer care. However, they still depend on MNOs / host networks for connectivity and fundamental network functions.
- Full MVNOs are known as full infrastructure MVNOs or thick MVNOs. They have better control over their services and subscribers than the other two former types. It can oversee anything from core network functions to sales and marketing.
Full MVNOs manage
- Billing & customer management: Custom plans, invoices, and usage tracking.
- Service provisioning: Set up network features like VoLTE, VoWiFi, and SMS.
- Value-added services (VAS): Voicemail, call forwarding, and self-care apps.
- Roaming agreements: International coverage via GRX/IPX networks.
- Number portability & routing: Manage phone numbers and call paths.
Technologies Used by Full MVNOs:
- SIM Management Platform: Controls SIM personalization, OTA updates, and eSIM.
- Mobile Core Network (EPC/5GC): Manages connectivity, authentication, and data flow.
- Voice Services (VoLTE/VoWiFi/IMS): Enables high-quality voice calls over LTE/Wi-Fi.
- OSS/BSS Systems: Supports billing, CRM, and user subscriptions.
- Roaming & Signaling: Uses SS7, Diameter, and HTTP/2 for global coverage.
- Service Platforms: Operates voicemail, call management, and self-service tools.
A Full MVNO has its core network components such as HLR, HSS, SMSC, UDM, PGW UDM, SMF, UPF, etc those are based on Ss7/Sigtran, Diameter, GTP, HTTP2, etc, Examples of full MVNOs include Google Fi, Xfinity Mobile, Ultra Mobile, Ting, Cricket Wireless, and Metro by T-Mobile.
How does an MVNO work?
In essence, MVNOs exploit the MNO’s connectivity and technology and then resell it to the customers and their applications by providing value-added services in addition to the connectivity.
This is how it actually works in practice… A customer who has an IoT application. Instead of heading to an MNO to get just the connectivity, they can contact an MVNO and can enjoy not just connectivity, but also technical support, a security consultation, billing, a device management layer, and a SIM management layer. In short, we can say that MVNOs are a single-source provider for both connectivity and all “the other stuff” that MNOs aren’t capable of providing.
Benefits of MVNOs
One significant advantage of MVNOs is their ability to provide wider geographical coverage and seamless connectivity, surpassing what a single MNO can offer.
For example, an MVNO might identify a way to give customers a better coverage option for Europe. The next step would be to approach the top three or four MNOs in each country and sign a contract with them so that the MVNO’s customer, who will be traveling throughout Europe, would not have to interact with each MNO in the countries they will be visiting. They can simply contact the MVNO and activate one SIM card (the subscriber identity module that enables them to connect to the specific network) for connectivity.
What’s the difference between MNO, MVNO, and MVNA?
An MNO is a mobile network carrier that deals with cellular services in a particular country or region and runs their private telecom towers, while an MVNO is a company that partners with MNOs and other roaming partners to deliver a broader and more flexible coverage footprint.
And the roaming partners are mobile virtual network aggregators (MVNAs). They are the middlemen that link the MNO and the MVNO. For instance, an MVNA may combine coverage from Docomo, KT, and Vodafone into a single bundle, or, as their name suggests, aggregate it, and then market it to an MVNO.
How to Choose the Right MVNO?
There is a sheer number of MVNO providers in the market. In such a crowded market, it’s very difficult to find the right one. So segmentation and a crystal-clear niche become more important. Here are some characteristic segments that have become apparent:
- Discount: Focuses on low-cost services.
- Telecom: Offers a range of telecom services like fixed-line phone and broadband internet.
- Media/Entertainment: Must be associated with the press or entertainment industries.
- Migrant: Opt for a provider that excels in international voice services and offers deals for calling particular nations.
- Retail: Great if it is connected to a consumer retail brand.
- Business: Whose services target business customers only.
- Roaming: Whose services target overseas travelers through roaming contracts with MNOs across multiple markets.
- M2M: Specifically backs cellular machine-to-machine services.
In a Nutshell
MVNOs have long been a mainstay in the network infrastructure of developed economies. Now, it is getting a whole new perspective with the rise of the Internet of Things (IoT). IoT requires a special kind of service that is hard to buy or build from scratch. Because of this, the MVNO business model is very relevant today, evolving to meet the demands of new businesses and consumers. If you are also looking for a company that provides services related to SS7 software development for MVNOs, ComCode Technology is the best bet.
