MVNO And MVNE - And Explanation | The Communication Blog

Sunday, August 8, 2010

MVNO And MVNE - And Explanation

By Michael Miller

## What is MVNO really?

MVNO is a short form for "Mobile Virtual Network Operator." It is actually a mobile communications provider that doesn't have its own infrastructure, bandwidth and spectrum. As an alternative it makes a partnership with different providers and serves the services to their customers instead. It is standalone and able to set its own set of prices, with regards to the initial price fixed by the actual communications operator or carrier.

More than just any ordinary reseller, a good MVNO will offer valuable services, advertising as well as other captivating elements to their customers. In fact, MVNO customers will not even realize that the service given is actually provided by a different carrier. The virtual operator will also possess its very own SIM cards which are never the case for any other ordinary resellers. Resellers also would not be able to set their products' prices as they please, as they are tied to the original carrier's price.

Prepaid phones are commonly branded and marketed via MVNO's. This enables the carrier to have a greater market share and also the MVNO to enter into the market in a lower cost segment.

Existing carriers are also seizing some of the advantages of the MVNO business model by offering their own virtual services separate from their traditional carrier branding.

## What is an MVNE?

MVNE is a short form for "Mobile Virtual Network Enabler." Different from Mobile Virtual Network Operator, MVNE provides all the service as well as infrastructure to support the Network Operator. The services offer network component stipulation and operations, which provides an outsourced service which will dramatically cut down the Operator's costs.

The major good thing about this is that it permits the Operator to give its utmost attention to the thing it's good at, the prospecting of as well as the growth of its relationship with customers. The MVNE has got no attachment with the end-users therefore it can focus on doing what it does best, which is to give network services, management as well as operations services to the Operator.

Many firms are starting to see the benefits of the MVNO system and beginning to apply it in their work areas. The function of these virtual operators will possibly develop and transform to suit the market needs according to the direction of the carriers, as well as the customers, who are technology's traditional enablers.

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