Mobile Virtual Network Operator (MVNO) | Official Definitions

The definition of Mobile Virtual Network Operator (MVNO)

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Although there was no official MVNO definition or standard in the early days, the industry and regulatory authorities have since then adopted an overall common definition for Mobile Virtual Network Operators.

In the early days of mobile virtual network operators (MVNO) there was no consensus on what constituted an MVNO.

The first time, the regulation of “these emerging players” were discussed at an international level, was within the scope of the ITU Strategic Planning Workshop on licensing 3G mobile, in Geneva, 19 to 21 September 2001, and later the ITU adapted the following definition:

“A mobile Virtual Network Operator (VNO) is an operator that offers mobile services but does not own its own radio frequency. Usually, this operator has its own network code and in many cases issues its own SIM card. The mobile VNO can be a mobile service provider or a value-added service provider. It is to be noted that there are differing views on how to define a mobile VNO.”
ITU
ITU: Regulatory Treatment of Mobile VNOs

However, much has changed since then, and taking MVNO word by word, provides a much clearer understanding.

What is a Mobile Virtual Network Operator (MVNO)?

MOBILE = transportable, transferable, or movable. Relating to mobile cellular phones, handheld devices, and similar wireless technology.

VIRTUAL = almost, or nearly as described, but not completely.

NETWORK = connect as, or operate with a network.

OPERATOR = a person or company that engages in, or runs a business or enterprise.

Thus, based on a combination of the old MVNO definitions from ITU and the various national regulatory authorities today, an updated MVNO definition, would look like this:

"A Mobile Virtual Network Operator (MVNO), is an entity, that offers telecommunications services similar to a mobile network operator (MNO). However, an MVNO does not own radio frequency spectrum nor a radio access network. Instead, the MVNO enters into a commercial agreement with a provider that has - and then provide its own service to its customers, under its own brand, value proposition and pricing."
Mobile Virtual Network Operator MVNO

What a Mobile Virtual Network Operator isn't

A MVNO is not a “mobile operator light”. Mobile Network Operators (MNO) and MVNO are two very different business models, cost structure and setups.

A MVNO is not an over-the-top (OTT) service, but have to adhere to industry standards and terms – in order to obtain a MVNO telecom license (or service provide license in some countries) from the local telecom regulator. It is an entity bound by local laws, including paying local tax and fees, as well as adhere to other local regulations.

A MVNO is NOT a local or regional mobile network operator with its own network. A MVNO does NOT have spectrum nor radio access network (RAN).

What are sub-brand MVNOs?

Sub-brands (also: secondary brands or flanker brands) are secondary brands, owned and controlled by the mobile network operators (MNO).

They are dependent on the mobile network operator (owner), who try to differentiate its offers to attract, and make various target groups believe it is someone else. However, sub-brands are not be viewed as relevant players because they have no independence from the network operators and are not in any price, or innovation competition with their owner = the mobile network operator.

MVNO Definitions in Various Countries

Australian Communications and Media Authority (ACMA) • MVNO Definition

A mobile service operator that does not have its own licensed spectrum and does not own the wireless network infrastructure over which it provides services to its customers.

Canadian Radio-television and Telecommunications Commission (CRTC) • MVNO Definition

An MVNO is a wireless service provider that does not own spectrum or operate its own radio access network (RAN); instead, it relies on the spectrum and RAN of a wireless carrier and, in some cases, other facilities and/or services, to provide mobile wireless services to consumers.

However, Canada has recently changed MVNO into their very own definition, where a MVNO has its own network (Does not make any sense)

Bhutan InfoComm and Media Authority • MVNO Definition

MVNOs are one type of shared spectrum operator who do not possess any spectrum of their own but rather utilize the spectrum and several network components of another operator at appropriate commercial terms.

France – Autorité de Régulation des Communications Électroniques et des Postes (ARCEP) • MVNO Definition

MVNO’s are operators who do not have their own radio network, using that of one of the three mobile operators (Orange, SFR and Bouygues Telecom) by buying wholesale minutes of conversation to offer mobile communications services to their subscribers. Although they do not have their own radio network, MVNOs are operators, who control the design and launch of their commercial offers, and are fully responsible for the provision of mobile communications services to their customers.

Georgia Communications Commission (ComCom)

A mobile virtual network operator (MVNO) is a mobile service provider that does not have its own network and infrastructure, and instead uses another operator’s network to provide services.

Ghana National Communications Authority • MVNO Definition

A Mobile Virtual Network Operator (MVNO) is an entity that does not have spectrum of its own for access services but is licensed to provide access services to its customers through an agreement with any licensed access provider (also called an MNO). The MVNO shall not possess spectrum for access services in any manner including licensing of spectrum.MVNOs shall be licensed as distinct service providers with their own licensing and regulatory framework.

Hong Kong – Communications Authority • MVNO Definition

A MVNO is an operator who provides a public radiocommunications service to customers through interconnection with, and access to, the radiocommunications infrastructure of a MNO licensed under a UCL authorised for provision of mobile services or a MCL and assigned with the radio spectrum through which the public radiocommunications services are provided.

Iceland Post and Telecom Administration (Fjarskiptastofa) • MVNO Definition

Mobile Virtual Network Operator (MVNO) refers to a provider of mobile services which does not have its own spectrum resources and may or may not own mobile network infrastructure, depending on the particular business model pursued and the extent to which they rely on the facilities provided by the host mobile network.

According to the PTA’s definition in its Decision No 4/2007, in cases involving pure virtual network access, the virtual network operator controls the system that is necessary for interconnection and roaming in other operators’ networks but does not own a distribution system (i.e. the wireless part of the mobile phone network).

A Reseller typically has neither mobile spectrum nor network infrastructure, but has the direct customer relationship and may handle, inter alia, customer billing, marketing and sales of the service to end users under an independent brand name.

According to the PTA’s definition in its Decision No 4/2007, the reseller does not own any independent mobile network infrastructure and purchases virtually all support services at the wholesale level.

Icelandic telecommunications legislation is based to a large extent on EU legislation in the field due to Iceland’s obligations under the EEA Agreement.

Iran – The Communication Regulatory Authority (CRA) • MVNO Definition

Full MVNO: Virtual operator which could use mobile network capacity of host operators (MNOs) based on a wholesale agreement, to serve its subscribers with its own brand, marketing and sales model; in addition it shall establish its own mobile network infrastructure except the radio access network. This operator could have its own service platforms and billing and customer care.

Full MVNO shall establish its own Mobile Switching Centre (MSC), Home Location Register (HLR) data base, Gateway GPRS Support Node (GGSN) and Service GPRS Support Node (SGSN).

Full MVNO is not allowed to establish its own radio access network with any licensed frequency spectrum and related transmission network.

Light MVNO: Virtual operator which could use mobile network capacity of host operators (MNOs) based on a wholesale agreement, to serve its subscribers with its own brand, marketing and sales model. This operator could have its own service platforms and billing and customer care.

Light MVNO is not allowed to have its own Mobile Switching Centre (MSC), Gateway GPRS Support Node (GGSN) and Service GPRS Support Node (SGSN). Light MVNO is not allowed to establish its own radio access network with any licensed frequency spectrum and related transmission network.

International Telecommunication Union (ITU) • MVNO Definition

A Mobile Virtual Network Operator (VNO) is an operator that offers mobile services but does not own its own radio frequency. Usually, this operator has its own network code and in many cases issues its own SIM card. The mobile VNO can be a mobile service provider or a value-added service provider. It is to be noted that there are differing views on how to define a mobile VNO.

Jordan – Telecommunications Regulatory Commission of Jordan (TRC) • MVNO Definition

“Mobile Virtual Network Operator” (MVNO) means an operator which may own or control infrastructure and which is licensed to resell Public Mobile Wireless Services under its own name using the network, in full or in part, of licensed MNO(s).

“MVNO Services” means Public Mobile Wireless Services that are provided by an MVNO.

The MVNO Services could have, but are not limited to, the following characteristics:

Full responsibility of the MVNO for the relationship with its subscribers in accordance with terms and conditions of its License Agreement and any related Regulations.

Differentiated tariff schemes and business strategies of MVNO from those of its host MNO.

MNOs and MVNOs shall be free to negotiate the model that best fulfils their interests and business strategies. Consequently, more than one type of MVNO can be implemented in Jordan depending on how far an MVNO wishes to rely on the facilities of the host MNO, the adopted segmentation of the market, and the proposed product sets.

Kosovo – Telecommunications Regulatory Authority (TRA) • MVNO Definition

Mobile Virtual Network Operator (MVNO) is an operator with no possession of frequency spectrum, but has an agreement with conventional Mobile Network Operators (MNO). MVNOs purchase minutes from MNOs and then, they resell it to their consumers.

Kuwait – Communications and Information Technology Regulatory Authority (CITRA)

Mobile Virtual Network Operator (“MVNO”) means a Licensed Service Provider that resells wholesale mobile network services which are leased/purchased from a Host FBP in order to provide retail services to the MVNO’s subscribers without spectrum assignment or radio access network.

Malta – Malta Communications Authority (MCA) • MVNO Definition

The MCA categorises three models for such undertakings as follows:

1. Service Provider (SP) or airtime reseller: The undertaking does not control any network element and makes use of the SIM cards of the MNO.

2. Enhanced Service Provider (ESP): The undertaking resells the services of the MNO and provides additional own services. They do not issue their own SIM cards, although they may re-brand the network operator’s SIM cards.

3. Full or Extended Mobile Virtual Network Operator (MVNO): The undertaking operates a physical network infrastructure comprising of, at a minimum, a Mobile Switching Centre (MSC), a Home Location Register (HLR) and authentication centre (AUC). A full MVNO has its own International Mobile Subscriber Identity (IMSI) code, its own Network Code (MNC), issues its own SIM cards and offers its own.

Malaysian Communications and Multimedia Commission (SKMM) • MVNO Definition

A Mobile Virtual Network Operator (MVNO) is an organization that does not have assignment of spectrum, but is capable of providing public cellular services to end users by accessing radio networks of one or more spectrum holders.

New Zealand – Ministry of Business, Innovation & Employment • MVNO Definition

A mobile virtual network operator (MVNO) is a mobile service provider that does not have its own network infrastructure or radio spectrum licenses, but rather uses an existing mobile network operator’s infrastructure and spectrum.

An MVNO provides services by purchasing a wholesale ‘full service’ mobile offering. The service provider then utilises an existing mobile network to deliver a full suite of mobile services to end-users, with their own branding, billing, and so on.

Nigerian Communications Commission (NCC) • MVNO Definition

A Mobile Virtual Network Operator (MVNO) is a telecommunications product and service operator that rides on top of the capacity of a fully Licenced Mobile Telecommunications Service provider or Mobile Network Operator (MNO).

The MVNO reaches a “Wholesale Agreement” or “Revenue Sharing Agreement” with the Telecommunications Company (Telco) through negotiations, and delivers its services after bulk purchasing resources from the Telco.

The defining difference between an MVNO and an MNO is the simple fact that an MVNO has no ownership whatsoever of spectrum elements, irrespective of its operational model.

Pakistan Telecommunication Authority • MVNO Definition

Mobile Virtual Network Operator (MVNO) is an operator that does not own any spectrum; instead, MVNOs have commercial arrangements with conventional Mobile Network Operators (MNOs) for provision of mobile communication services to their own customers.

Portugal – Autoridade Nacional de Comunicações (ANACOM) • MVNO Definition

On 09 February 2007, ANACOM approved the framework for the activity of MVNOs, which states as follows: “There are many economic operations which can be included under the designation MVNO, which however have as a common denominator the fact that these operators do not use rights of use for frequencies and are consequently not provided with their own radio access network infrastructures, being thus required to support themselves on radio means supplied by network operators who hold the respective rights of use”.

More recently, it was deemed that an MVNO is “a body that in its virtual mobile operation does not use rights of use for frequencies and consequently self-owned infrastructures associated to the radio access network, being supported on radio means provided by network operators who hold the respective rights of use. Different types of operations may be deemed to be MVNO operations, according to whether they use more or less self-owned infrastructures and systems”.

Rwanda Utilities Regulatory Authority (RURA)

Mobile Virtual Network Operator (MVNO): is a mobile wireless communications services provider that does not own the wireless network infrastructure over which it provides services to its customers.

Saudi Arabia – The Communications and Information Technology Commission (CITC) • MVNO Definition

Mobile Virtual Network Operator (“MVNO”) means a Licensed Service Provider that leases mobile network capacity from a Host Facilities Based Provider (FBP) and uses this capacity to offer its own mobile subscriptions and services to end-users without spectrum assignment or radio access network. An MVNO may lease transmission capacity and other related wholesale services from the Host FBP or from other Licensed Service Providers.

Singapore – Info-communications Development Authority of Singapore (IDA) • MVNO Definition

A Mobile Virtual Network Operator (MVNO) is an operator who provides mobile subscription and call services to its customers with no allocation of spectrum. The MVNO must use part of the networks of a mobile operator licensed by IDA as a Facilities-Based Operator (“FBO”) to originate and deliver its customers’ calls. The MVNO must pay such FBO for the use of the network and/or the essential radio segment of the network(s).

Somalia – National Communications Authority Federal Republic of Somalia • MVNO Definition

Mobile Virtual Network Operator (MVNO) means is an operator that offers mobile services but does not own network infrastructure, it can be a mobile service provider or a value-added service provider, providing services through an agreement with a mobile network operator to obtain access to network services.

Thailand – National Broadcasting and Telecommunications Commission (NBTC) • MVNO Definition

MVNO means the licensee operating the mobile telephone service under own name which is not assigned to radio frequency and with
no right to manage all or partial of radio frequency in mobile telephone service.

US Federal Communications Commission (FCC) • MVNO Definition

Resellers offering service to consumers by purchasing airtime at wholesale rates from facilities-based providers and reselling it at retail prices.

UK Office of Communications (Ofcom) • MVNO Definition

MVNOs’ invest in some hardware allowing it to differentiate its offer to the customers and make it less dependent on the MNO’s capacity. The MVNO has full control over the customer who will have to sign a contract with the provider and issue their own SIM cards.

Zimbabwe – Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) • MVNO Definition

A mobile virtual network operator (MVNO) is a wireless communications services provider that does not own the wireless network infrastructure over which it provides services to its customers.

An MVNO licence authorises the licensee to negotiate with and enter into a business agreement with a mobile network operator (MNO) licensee to obtain bulk access to network services and radio frequency spectrum at wholesale rates, then sets retail prices independently.

The MVNO licence allows the prospective licensee to negotiate for concession at any point in the MNO value chain, hence an MVNO may decide to use own customer service, billing support systems, marketing and sales personnel, or it could employ the services of a mobile virtual network enabler (MVNE).

นิยามของผู้ให้บริการในรูปแบบต่างๆ

ผู้ให้บริการโทรศัพท์เคลื่อนที่

ผู้ให้บริการโทรศัพท์เคลื่อนที่ Mobile Network Operator (MNO)
หมายถึง ผู้ให้บริการที่มีใบอนุญาตการใช้คลื่นความถี่และเป็นเจ้าของโครงข่ายโทรคมนาคม

ผู้ให้บริการโทรศัพท์เคลื่อนที่แบบโครงข่ายเสมือน

ผู้ให้บริการโทรศัพท์เคลื่อนที่แบบโครงข่ายเสมือน Mobile Virtual Network Operator (MVNO) หมายถึง ผู้ให้บริการโทรศัพท์เคลื่อนที่ที่ไม่มีคลื่นความถี่หรือโครงสร้างพื้นฐานของตนเอง แต่ใช้โครงข่ายของผู้ให้บริการ MNO หรือผู้ให้บริการขายส่งบริการโทรศัพท์เคลื่อนที่ Mobile Virtual Network Aggregator/Enabler (MVNA/MVNE) เพื่อดำเนินการให้บริการในชื่อของตนเอง

ผู้ให้บริการขายส่งบริการโทรศัพท์เคลื่อนที่

ผู้ให้บริการขายส่งบริการโทรศัพท์เคลื่อนที่ Mobile Virtual Network Aggregator (MVNA) หมายถึง ผู้ให้บริการที่ทำหน้าที่ขายส่งบริการโทรศัพท์เคลื่อนที่ให้กับผู้ให้บริการ MVNO

ผู้ให้บริการสนับสนุนโครงสร้างพื้นฐานและโครงข่ายโทรคมนาคม

ผู้ให้บริการสนับสนุนโครงสร้างพื้นฐานและโครงข่ายโทรคมนาคม Mobile Virtual Network Enabler (MVNE) หมายถึง ผู้ให้บริการที่สนับสนุนด้านโครงสร้างพื้นฐานและโครงข่ายโทรคมนาคมแก่ผู้ให้บริการ MVNO และ MNO

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Author: Allan Rasmussen
Allan is a MVNA/MVNE/MVNO specialist with hands-on experience from more than 60 projects in both competitive and greenfield markets. His expertise includes business case development, execution, launch and growth strategies. Advisor and consultant to mobile network operators, MVNA, MVNE, MVNO, National Regulatory Authorities, Government Agencies, Broadcast Companies, TMT Industry Associations, Innovation and Investment Banks.
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