Terminology » Mobile Communication » MNO vs MVNO: Understanding the Key Differences

MNO vs MVNO: Understanding the Key Differences

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MNO stands for Mobile Network Operator, and MVNO stands for Mobile Virtual Network Operator.

MNO and MVNO are terms related to the telecommunications industry, referring to different types of mobile service providers. Let’s compare them and highlight the differences. Both are associated with cellular mobile networks.

MNOs buy radio spectrum and provide end-to-end services (voice or data) to their subscribers. They establish mobile network towers and issue SIM cards to enable users to access their network services via handsets (mobile phones).

MVNOs, on the other hand, offer mobile services to end-users but don’t possess a government license to use their own radio frequency. Instead, MVNOs buy spectrum from MNOs. Cellular network elements, including transmission links, control functions, and mobility management, track the location of mobile handsets, enabling voice call and data services.

For more information, refer to a cellular communication tutorial.

What is MNO | Mobile Network Operator

An MNO is a company that owns and operates the infrastructure for providing mobile communication services. This infrastructure includes the physical network of cell towers, base stations, and other necessary equipment.

MNO-Mobile Network Operator

  • MNOs are responsible for establishing mobile networks to provide cellular services (voice/data) to subscribers. This includes:
    • Purchasing radio spectrum from regulators.
    • Purchasing network equipment from vendors to set up the cellular network.
    • Deploying equipment and performing testing before providing network service to users.
    • Issuing SIM cards, handsets, and managing handsets.
    • Offering voice and data services, as well as roaming facilities.
    • Handling billing and other charges.
    • Providing customer support.
    • Marketing, sales, and distribution.
  • Examples of MNOs: Verizon Wireless, T-Mobile, Vodafone, Airtel, Idea, Reliance, etc.

What is MVNO | Mobile Virtual Network Operator

An MVNO is a company that doesn’t own the physical network infrastructure. Instead, it leases network access from an MNO to provide mobile services to its customers.

MVNO-Mobile Virtual Network Operator

  • MVNOs do not own a license to use radio spectrum. They enter into commercial deals with one or multiple wireless network carriers (MNOs) to allow their customers (users) to use radio spectrum and other facilities.
  • MVNOs are basically resellers of wireless communication services. They buy voice and data packages in bulk from MNOs and sell them to their subscribers/users.
  • Two network elements, MVNA (Mobile Virtual Network Aggregator) and MVNE (Mobile Virtual Network Enabler), are used along with MNO and MVNO elements in the cellular system.
  • There are different types of MVNOs, e.g., Skinny MVNO, Light/thin MVNO, Full/thick MVNO.
  • DOT in INDIA has approved more than 50 companies who can provide MVNO services to subscribers.
  • Examples of MVNOs: Lyca Mobile (World’s largest International MVNO), BSNL, Aerovoyce, etc.

MNO MVNO MVNA MVNE

The figure above depicts all the elements, such as MNO, MVNO, MVNA, and MVNE, in a typical cellular network.

MVNO Originated Call | MVNO Terminated Call

MVNO call flow

Image courtesy : https://www.itu.int

The figure depicts MVNO originated call and MVNO terminated call flow diagrams. It shows the signal flow path for incoming calls to an MVNO and outgoing calls from an MVNO.

Difference between MNO and MVNO

The following table compares MNO vs MVNO and summarizes the key differences between them.

CharacteristicMNOMVNO
OwnershipOwns and operates network infrastructure, including cell towers and base stations.Does not own the network infrastructure; leases network access from an MNO.
Licensed SpectrumHolds its own licensed radio spectrum for providing mobile services.Does not hold its own licensed spectrum; relies on the spectrum owned by the MNO.
Network OperationManages and operates the core network infrastructure, routing calls, managing data traffic, etc.Does not manage the core network but rather resells services obtained from the MNO.
Infrastructure InvestmentInvests heavily in building and maintaining the physical network infrastructure.Does not invest in building physical infrastructure, reducing capital expenditures.
Flexibility and InnovationMay have longer development cycles and be less flexible due to the scale of infrastructure.Generally more flexible, allowing for quicker adaptation to market demands and innovations.
Branding and MarketingOperates under its own brand and conducts its own marketing and branding activities.Conducts its own branding and marketing activities but relies on the MNO’s network reputation.
ExamplesAT&T, Verizon, T-Mobile, VodafoneBoost Mobile, Cricket Wireless, TracFone

Conclusion

In summary, the primary difference lies in ownership and control of the network infrastructure. MNOs own and operate their own networks, while MVNOs lease network access from MNOs without owning the underlying infrastructure. MVNOs can enter the market more easily and offer more flexible services, but they depend on MNOs for access to the physical network.