Mobile Virtual Network Operator (MVNO)

A GSM phenomenon where an operator or company which does not own a licensed spectrum .

Generally without own networking infrastructure. An MVNO is a wholesale arrangement that allows

the Mobile Network Operator (MNO) to sell excess capacity for resale by more diversified, specialized or other markets through hosting a service on its network to an MVNO.

At the simplest level this involves re-branding a SIM and maybe the phones, having your own sales channel and customer care, and maybe some value-add services and a billing engine to offer differentiated pricing if required.

MVNOs resell wireless services under their brand name,  using   regular telecom operator's network with which they have a business arrangements.

They buy minutes of  use from the licensed telecom operator and then resell minutes of usage to their customers of MVNO.

Currently MVNOs are  emerging in fast pace in European markets and beginning in USA also. Slowly MVNO phenomenon catching up in Asia and other  parts of the world also.

Benefits

• Deploying their own infrastructure allows the MVNO to offer value-added services.

• The goal of offering value-added services is to differentiate versus the incumbent mobile operator.

• This allows for customer acquisition and prevents the MVNO from needing to compete on the basis of price alone.