Mobile virtual network operator: Difference between revisions

Revision as of 03:11, 5 January 2025

Revision as of 03:15, 20 January 2025

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[[File:MTN Network towers 02.jpg|thumb|An MVNO does not own its own network infrastructure, and simply uses an MNO's infrastructure.]]

{{Use dmy dates|date=May 2017}}

A '''mobile virtual network operator''' ('''MVNO''') is a wireless communications services provider that does not own the [[Base station subsystem|wireless network infrastructure]] over which it provides services to its customers. An MVNO enters into a business agreement with a [[mobile network operator]] (MNO) to obtain bulk access to network services at wholesale rates, then sets retail prices independently.<ref>{{cite web|author=Allan Rasmussen |url=http://www.yozzo.com/mvno-academy/mvno-definition/ |title=MVNO Definition |publisher=Yozzo.com |date=2007-02-09 |access-date=2017-07-04}}</ref> 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).<ref>{{cite web|url=https://www.yozzo.com/mvno-academy/mobile-virtual-network-enabler-mvne/ |title=Mobile Virtual Network Enabler (MVNE) |date=20 August 2022 |publisher=Yozzo, Allan Rasmussen |access-date=2023-02-18}}</ref>

==History==

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In 1997 Vodafone Australia and TotalTel launched FastFone, the world's first true prepaid MVNO utilising the worlds first fully MNO integrated MVNE platform supplied by Isoton (formerly Steadycom). FastFone's MVNO model was very successful, attracting more than 300,000 subscribers in 18 months. Vodafone purchased the business in 1999.

With European markets newly open to competition and new technology enabling better service and cheaper handsets, there was a massive surge in demand for cellular phones.<ref name=":02" /> In the midst of this swell, Sense Communications fought for access to mobile network operator (MNO) spectrum in [[Scandinavia]] in 1997.<ref>{{cite web|url=http://lup.lub.lu.se/luur/download?func=downloadFile&recordOId=1349075&fileOId=2433717|title=Mobile Virtual Network Operators in Europe. Strategic and Legal Analysis|last=Sasinovskaya|first=Olga}}</ref> Sense was able to establish an MVNO agreement with [[Sonera]] in Finland, but it failed to persuade MNOs in Sweden, Denmark, and Norway.<ref>{{cite web|author=Allan T. Rasmussen |url=http://www.yozzo.com/mvno-academy/the-history-of-mvno/ |title=The History of MVNO |date=31 July 2016 |publisher=Yozzo.com |access-date=2017-07-04}}</ref> Sense then appealed to EU regulators, citing provisions that required certain MNOs to allow new entrants interconnection. While Sense's claim was denied, in November 1999, the company signed a service provider agreement with Telia/Telenor Mobile for GSM network capacity access, allowing Sense to offer services to its own customers in Sweden and Norway.<ref>{{cite web|url=https://www.telenor.com/media/press-releases/1999/sense-communications-buys-gsm-network-capacity-from-teliatelenor-mobile/|title=Sense Communications buys GSM network capacity from Telia/Telenor Mobile|date=23 November 1999|publisher= Telenor|access-date=23 July 2016}}</ref>

Despite Sense's initial failure, the regulator in Denmark saw the promise in the MVNO model as a cost-effective route for telecom companies to enter the market and in May 2000, legislation passed that required network operators with significant market power to open up access to their infrastructure.<ref>{{cite web|url=https://www.itu.int/osg/spu/ni/competition/casestudies/denmark/Denmark%20Case%20Study%201101.pdf |title=COMPETITION POLICY IN TELECOMMUNICATIONS: THE CASE OF DENMARK |publisher=International Telecommunication Union |date=2002-11-01 |access-date=2017-07-04}}</ref> By August of that same year, the MNO [[SONOFON]] had solidified the first viable MVNO agreement with [[Tele2]]. This agreement provided Tele2 with access to SONOFON's network for both mobile and roaming services, the latter of which had been requested by (and denied to) Sense Communications. With the new regulations in place, MVNOs in Scandinavia eventually grew to a [[market share]] of above 10%.<ref>{{cite web |url=http://www.analysysmason.com/About-Us/News/Newsletter/Is-there-a-glass-ceiling-for-MVNOs/ |title=Analysys Mason |publisher=Analysys Mason |date=2011-06-28 |access-date=2017-07-04 |archive-url=https://web.archive.org/web/20181015003019/http://www.analysysmason.com/About-Us/News/Newsletter/Is-there-a-glass-ceiling-for-MVNOs/ |archive-date=15 October 2018 |url-status=dead }}</ref>