Why Are MNOs Launching IoT MVNOs?

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By Jamie Moss | 4Q 2018 | IN-5315


MVNOs Make MNO Services More Affordable


Mobile Virtual Network Operators (MVNOs) do not sell connectivity, they sell a business solution. MVNOs fill a gap in the market that is inadequately served by spectrum-owning Mobile Network Operators (MNOs). MVNOs make an otherwise needlessly expensive service affordable by wholesaling, combining, and repackaging the connectivity services of other MNOs. MVNOs simplify a specific point of complexity, creating a niche product for a dedicated audience that has discrete value. MVNOs are customers of MNOs and would be in direct competition with them if it were not for the fact that an MVNO’s wholesale suppliers cannot offer precisely the same service for the same price—at least not at the beginning. An MVNO’s customers may be buying connectivity, but what the MVNO is selling is a practical solution to a business problem.

Traditionally, MVNOs served private consumer needs, but they have also been set up to serve corporate liable devices and have nearly always existed for the sake of overcoming roaming issues. Namely, they remove the unpredictability of the e…

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