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A MVNO (Mobile
Virtual Network Operator) piggybacks on an existing Mobile Network
Operator (MNO) frequency licensee to provide almost the
same bouquet of services, or even a larger bouquet as circumstances
allow.
A full-service MNO
is preferred as this obviates the formalities of license acquisition and
the capital costs of national infrastructure.
A number of 'MVNO-type'
business models are available for provisioning of mobile services where
no operation of a physical network is provided:
|
Type |
Feature Set
|
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Service
Provider (SP) |
Provides basic
voice/data services with very little customizability |
|
Enhanced
Service Provider (ESP) |
Provides basic
voice/data services some customizability |
|
Mobile Virtual
Network Operator (MVNO) |
Provides basic
voice/data services greater customizability |
|
Mobile Virtual
Network Enabler (MVNE) |
Provides basic
voice/data services on behalf of other brands |
These are
all ‘virtual networks’ characterized by the fact that operators of
virtual networks rather than physical networks mean capital investment
requirements are modest when compared to those of the Mobile Network
Operators
Generally these
services are paid for on a usage basis, thus freeing the MVNO from the
significant capital investment required to build and maintain a network
and deploy services.
A Business model
that requires low capital investment and generates high cash conversion
is required. Billing systems, some OSS systems, own content provision,
own SIM cards, marketing and branding will be required.
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