MNO vs MVNO is the bulletin today; understanding their distinctions is crucial to identify which one of the two suits your needs. Since they own the networks and cell towers, MNOs can be regarded as the major participants in the market. They are widely available and provide reasonably reliable service.
While these solutions can be incredibly helpful, they sometimes come with a significant cost, especially when you’re dealing with unforeseen circumstances like unexpected data usage, international roaming, hidden fees, network outages or issues, etc.
After that, there are MVNOs. MVNOs operate much like smaller, more specialized providers. They simply lease the capacity from the large MNOs; they do not own the networks. This makes it possible for them to provide more competitive pricing and needs-specific package offerings, which may be helpful for IoT.
Which is the best option for you, then? Factors like the type of device you’re connecting, the level of network coverage you require, and your budget all play a crucial role. MNOs and MVNOs are defined, discussed, and contrasted in this blog based on their respective functions.
What is an MNO?
Any telecommunications company that owns and operates its network infrastructure and provides mobile network services to individual and business customers is considered a Mobile Network Operator, or MNO. They support the entire mobile ecosystem.
Key Aspects:
- Infrastructure Ownership: MNOs own and operate the entire network infrastructure. It consists of everything from cell towers, base stations, radio frequency spectrum licenses, core network equipment, and the fiber optic cables that tie it together. That is a hefty amount of money to invest.
- Spectrum Licensing: MNOs are licensed by regulatory agencies (e.g. the FCC in the US) to use specific radio frequencies for mobile communication. Licenses are needed to transmit and receive the spectrum and are considered an asset.
- 360 Degree Service Provision: All MNOs completely control the delivery of mobile service. This includes network operations, maintenance, customer service, billing, and marketing. They own the entire customer experience.
In a nutshell, MNOs are the enterprise-class companies that own, build, and operate the physical mobile networks that power our connected lives. They are the bedrock on which the mobile industry is built.
What is an MVNO?
An MVNO refers to an operator who sells mobile services but does not own the physical telecom networks. Instead, they rent network facilities from existing Mobile Network Operators (MNOs) such as Verizon, AT&T, or T-Mobile.
Key Areas of Interest:
- Infrastructure Dependency: As MVNOs operate on already-in-place infrastructure, they do not need to manage or set up cell towers or base stations. They mainly focus on the customer-facing areas of the business.
- Branding and Services: MVNOs distinguish themselves using branding, pricing, customer support, and tailored services. They may offer unique services or focus on niche segments.
- Resale Capacity: MVNOs obtain voice minutes, text messages, and data at wholesale prices and then package those services to sell to clients. An agreement is made between the MVNO and MNO in which specific network services the MVNO is allowed to use are also categorized under wholesale tariffs.
- Client Management: MVNOs handle all marketing, sales, billing, and technical support. This is done without control or oversight of the network.
To simplify, MVNOs are just mobile service resellers. They purchase a predetermined capacity from the “manufacturers” or “MNOs” and devise strategies to market their services. This creates competition and diversification in the mobile industry.
Who Owns the Network? The Key Difference Between a MNO and MVNO
Let’s take a look at how they differ:
| Feature | MNO | MVNO |
|---|---|---|
| Infrastructure | Owns and operates the entire network infrastructure (towers, base stations, core network, etc.) | Leases network capacity from one or more MNOs; doesn’t own infrastructure |
| Spectrum | Holds licenses to use specific radio frequencies | Doesn’t own spectrum; relies on the MNO’s licenses |
| Service Provision | Provides end-to-end mobile services directly to customers | Resells mobile services under its own brand; focuses on customer-facing aspects |
| Investment | High capital expenditure due to infrastructure ownership | Lower capital expenditure; focuses on marketing and customer service |
| Control | Has complete control over network quality and coverage | Relies on the MNO’s network; less control over network aspects |
| Examples | AT&T, T-Mobile, Vodafone, Verizon, Orange | Mint Mobile, Spenza, Visible, Cricket Wireless, Giffgaff, Tesco Mobile |
Pros and Cons of MNO and MVNO
Let’s break down the merits and demerits of each, letting you pick the best fit for your needs.
MNOs: The Network Owners
Mobile Network Operators (MNOs) are like the titans of the business. Let’s deep dive into the pros and cons it offers to the public.
Pros of MNOs:
- Extensive Network Coverage: MNOs invest considerably in their networks, resulting in larger coverage, particularly in rural or remote locations. This is a big benefit in the MNO vs MVNO dispute.
- Reliable Service: Direct control over the network typically correlates to more reliable service, fewer dropped conversations, and greater data speeds. MNOs often prevail in reliability.
- Broader Device Selection: MNOs often give the latest smartphones and a wider selection of gadgets, usually with attractive financing options. MNO vs MVNO: MNOs normally have the edge in device diversity.
- Comprehensive Customer Service: MNOs generally have significant customer service capabilities, including call centers, online support, and physical stores. This is a crucial element when debating between MNO vs MVNO.
Cons of MNOs:
- Higher Prices: Maintaining an entire network is expensive, and those expenses are passed on to consumers.
- Less Flexibility: MNO plans can be less versatile, with fewer customization possibilities and less attention to specific areas.
- Slower Innovation: Due to their scale and complexity, MNOs can sometimes be slower to innovate than the more agile MVNOs.
- Contractual Obligations: MNOs normally need contracts, which might bind you and incur early termination costs.
- Less Customized Service: MNOs may deliver less individualized service than MVNOs due to their wide consumer base.
MVNOs
MVNOs focus more on customer service, specialist markets, and competitive pricing. They don’t own infrastructure like MNO. Let’s continue our MNO vs MVNO analysis by looking at the pros and cons of MVNOs:
Pros of MVNOs:
- Cost-Effectiveness: MVNOs frequently give substantially reduced pricing than MNOs, making them desirable for budget-conscious consumers. MNO versus MVNO: MVNOs are often the distinct victors in price.
- Flexibility: MVNOs usually supply more flexible and customized plans, allowing you to personalize your service to your unique requirements.
- Niche Focus: Many MVNOs target certain client segments, such as abroad tourists, students, or elders, with personalized programs.
- Innovation: MVNOs can be more nimble and innovative, immediately introducing new services and features.
Cons of MVNOs:
- Network Dependency: MVNOs rely on the underlying MNO’s network. Consequently, their reach is confined by that MNO’s footprint. Coverage could be a challenge with some MVNOs.
- Customer Service: MVNOs may have lower customer service resources than MNOs, which can occasionally contribute to extended wait times.
- Device assortment: MVNOs may supply a lower variety of devices than MNOs.
- Roaming rates: International roaming rates could often be higher with MVNOs.
Understanding MNO vs MVNO via Examples
Let’s explain the MNO vs MVNO difference with the following scenarios:
1. The Traveler who is Always on the Go: This traveler relies on good coverage even in isolated locations. MNOs have local coverage, so they typically have larger markets. The MVNOs will use these networks, but their access may be limited or weighed for some reason.
- Choosing an MNO (e.g., Verizon, EE): They will be able to achieve the goals in more remote locations, experience fewer dropped calls, and will get more consistent data speeds. This strategy may involve high expenses but is more cost-effective in remote areas.
- Choosing an MVNO: This plan is more cost-effective and has a great deal of flexibility. However, in remote areas, they might experience weak signals, and the data speeds may be intentionally limited during busy hours.
2. The Budget-Conscious City Dweller: Living in a metropolitan area with decent coverage by several MNOs allows this person to spend less money by selecting an MVNO. Because of the lack of infrastructure expenses, MVNOs are able to offer reduced rates.
- Choosing an MNO: With an MNO, there is the highly likely chance of incurring high expenses, but with more bundled services. Everything comes with a price, however, and good coverage and a reliable network come at a high cost.
- Choosing an MVNO (say Mint Mobile or Giffgaff): Much less expensive, more flexible, and more enduring as their coverage is similar to the underlying MNO’s network.
3. The International Student: This user makes use of the students’ MVNOs that focus on international voice calling and data services. Some MVNOs have a particular focus and provide specialized offerings.
- Choosing an MNO: Common international roaming fees can be exorbitant. There may be a business calling package available, but it is likely to be on the pricier side.
- Choosing an MVNO (example, Lycamobile): Dedicated plans for international calls, which usually come with a lower price. Some data plans are intended for international travelers. Coverage could be country-specific and/or based on the third-party network service providers.
MNO vs MVNO: The Bottom Line
As MNOs own and operate their network infrastructure, they tend to have a wider coverage area and possibly better network quality. On the other hand, MVNOs that purchase network access from MNOs usually have better rates and offer more flexible plans. It is important to analyze personal needs such as coverage, budget, available options, and customer care services to select the best provider. The final decision revolves around which provider, MNO or MVNO, best meets specific habits and needs.
Ready to move forward with your own MVNO? Contact Spenza today to learn how we can help turn your brand vision into a reality.
