MNO vs MVNO
MNO stands for Mobile Network Operator and MVNO stands for Mobile Virtual Network Operator. MNO and MVNO are terms related to the telecommunications industry and refer to different types of mobile service providers. Let us compare them and derive difference between MNO and MVNO.
Both of these terms are associated with cellular mobile network. MNO refers to mobile network operators who buys radio spectrum and provides end to end service (voice or data) to its subscribers. They establish mobile network towers and also issues SIM cards to avail their network services by handset (or mobile phone) users. MVNO is an operator which offers mobile services to end users. MVNOs do not have government license to use their own radio frequency. MVNO buys spectrum from MNO.
The cellular network elements include transmission link, control functions and mobility management functions which keep track of location of mobile handsets. This helps them to provide voice call services as well as data services. Refer cellular communication tutorial >> for more information.
What is MNO | Mobile Network Operator
It 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 is responsible to establish mobile network to provide cellular
service both voice/data to the subscribers. This include all of the following.
• MNO purchases radio spectrum from regulators.
• MNO purchases network equipments from vendors to setup the cellular network.
• MNO deploys the equipments and performs testing before providing network service
to its users.
• MNO also issues SIM cards, handsets and does handset management.
• MNO offers voice and data services and roaming facility.
• MNO takes care of billing and other charges.
• MNO takes care of providing support to customers.
• MNO also does marketing, sales and distribution.
• Examples of MNOs : Verizon Wireless, T-Mobile, Vodafone, Airtel, Idea, Reliance etc.
What is MVNO | Mobile Virtual Network Operator
It is a company that doesn't own the physical network infrastructure but instead leases network access from an MNO to provide mobile services to its customers.
• MVNO does not own license to use radio spectrum. Instead MVNO enters into commercial deal with one or multiple
wireless network carriers (i.e. MNOs) to allow its customers (or users) to use radio spectrum and other facilities.
• MVNO is basically a reseller of wireless communication services. They buy voice and data packages in bulk
from MNOs and sell them to their subscribers/users.
• There are two network elements such as MVNA (Mobile Virtual Network Aggregator) and MVNE (Mobile Virtual Network Enabler) 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 the subscribers.
• Examples of MVNOs : Lyca Mobile (World's largest International MVNO), BSNL, Aerovoyce etc.
The figure depicts all the elements such as MNO, MVNO, MVNA and MVNE in a typical cellular network.
MVNO Originated Call | MVNO Terminated Call
Image courtesy : https://www.itu.int
The figure-1 depicts MVNO originated call and MVNO terminated call flow diagrams. The figure shows signal flow path for in-coming calls to MVNO and outgoing calls from MVNO.
Difference between MNO and MVNO
Following table compares MNO vs MVNO and summarizes the key differences between them.
| Characteristic | MNO | MVNO |
|---|---|---|
| Ownership | Owns and operates network infrastructure, including cell towers and base stations. | Does not own the network infrastructure; leases network access from an MNO. |
| Licensed Spectrum | Holds 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 Operation | Manages 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 Investment | Invests heavily in building and maintaining the physical network infrastructure. | Does not invest in building physical infrastructure, reducing capital expenditures. |
| Flexibility and Innovation | May 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 Marketing | Operates 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. |
| Examples | AT&T, Verizon, T-Mobile, Vodafone | Boost 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.
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