Mobile virtual network operator

A mobile virtual network operator (MVNO), or mobile other licensed operator (MOLO), is a wireless communications services provider that does not own the wireless network infrastructure over which the MVNO provides services to its customers. An MVNO enters into a business agreement with a mobile network operator to obtain bulk access to network services at wholesale rates, then sets retail prices independently. 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).

Background and history

The emergence of the MVNO model in various markets worldwide has varied in response to local factors.

In some markets, the MVNO concept came about as the result of regulatory intervention. Regulators wished to force established mobile network operators to offer wholesale access to their network to ensure robust competition to benefit the consumer. For example, in Scandinavia, significant market power existed for early entrant mobile network operators. Regulators there concluded that the MVNO model would be a time efficient and cost-effective route for telecoms companies to enter the market and therefore bring increased competition. The MVNOs in Scandinavia ended up having a market share above 10%.