MVNO-the acronym for Mobile Virtual Network Operators signify a relatively new breed of operators that use the infrastructure other established operators to provide a competitive service in the cellular market. The operator does not have its own spectrum allocation or license which are, instead, acquired from established Mobile Network Operators. MVNO provides an element of the physical infrastructure required to operate as a cellular operator rather than using only the Host Operator’s network and appears to the customer as an independent operator in its own right rather than an entity using somebody else’s network. MVNO’s lease wireless capacity from pre-existing mobile service providers and establish their own brand names different from the providers. It typically offers subscription-based voice and data service, and the customers are not doing business with underlying wireless provider but with the brand.

Beyond these basic premises, the amount an MVNO does itself can vary widely. At one end of the spectrum, it may wish to control as much as possible. It may, therefore, control its own mobile switching centre; have an independent pricing structure and its own supply of handsets. At the other end of the scale, it is simply a different brand and dedicated customer care function with all other elements provided by the Host Operator. Whatever the differences in definition, the key point is that for customers the perception is that everything is being provided by the MVNO. Therefore, an MVNO requires a distinct brand, so the customer feels as if he or she is using a completely separate network. This requires some control over handsets, separate customer service functions and billing platforms. The model is different from reseller models as traditionally resellers buy minutes in bulk and do not go much beyond delivering the same services as the one offered by the network operator.

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