MVNO VS MNO

Mobile Virtual Network Operator, (MVNO) can be described as retailers dealing with wireless communication and who purchase access in bulk to network services at wholesale rates. In essence, therefore, is that the MVNO does not own the wireless network infrastructure and from the bulk purchases made, they have the liberty to set the retail prices as they deem fit; remember also that the services bought from the MNO’s are repackaged and enhanced before resale.

Mobile Network Operators (MNO), purchase radio spectrum, and offer voice or data services to subscribers. MVNO’s therefore, purchase spectrum from MNO’s; MVNO’s work uses various elements that enable them to offer voice call and data services to its users. The elements utilized by the MVNO’s are such as the control functions, the transmission link, and the mobility management functions.

MVNO vs MNO

All the above-mentioned elements are used by the MVNO’s to track and locate the mobile handsets. Now with the above in mind, it is very easy to think that the MNO’s are the major players attracting more revenue when compared to the MVNO’s but that is not the case. As a surviving strategy MVNO’s as we mentioned earlier enhance the services that they get from the MNO’s, so by coming up with unique services they intentionally increase their market revenue.

Important to note is that there can never exist competition between MNO and MVNO, and the reason is pretty straightforward, MNO’s command a different market level when compared to MVNO’s. Regarding the above, it is not uncommon for one to wonder if it is possible for MNO’s to come up with a competitive service to compete with what the MVNO offers and consequently push them out of business.

Now for the above, we must first understand that under normal circumstances MNO’s cannot push the MVNO’s out of business, thanks to the existence of the competition legislation. The latter is structured such that it will help maintain logical market competition, by ensuring that the anti-competitive conduct by companies are abolished or punished.

On the other hand, if MNO’s are to lower themselves and try to compete with the MNO’s then they will have to do it without utilizing their physical structures. So what will happen is that if the MNO’s are desperate of competing with MVNO’s as far as the services are concerned, they will have to be tactical and come with artificial MVNO’s, which will be used to fairly compete with the other MVNO’s on their level.

Differences between MNO and MVNO

Why you should partner with MVNO’s, the latter, offers flexible plans that suit different categories of users. MVNO’s offer real-time billing consequently thus allows users to control their usage and expenditure in real-time. MVNO’s have also been known to offer cheaper services when compared to the MNO’s.

MNO’s on the other hand are known to offer wider coverage since they run their towers thus can effectively offer high-speed connections.

What we don’t like about MVNO’s and MNO’s

MVNO’s are characteristic of poor reception if the consumer is in a crowded place, for the MNO’s consumers can expect inflated prices, which are a result of the costs of putting up the towers.

Conclusion

The simple distinction between MVNO and MNO is that the former is dependent on the latter to function. MVNO’s are cheaper for people who are working under a budget, and by extension, it means that if you are out looking for perks, services such as bundling, and to enjoy a better customer service then you might have to switch to the major operators.

FAQ’s

1. Do all the MVNO’s offer the same coverage?

Not at all, MVNO’s don’t offer the same coverage, if you are, therefore, considering to settle with a specific carrier, you might first want to review their coverage map in an application or a website.

2. What does MNO mean?

MNO is a mobile network operator that owns and manages the infrastructure used to sell and deliver services to the virtual and mobile network operators.