MVNO: What are MVNOs and the Best Options for You?

Your smartphone is your lifeline, yet services may be expensive despite its functionality. If you are overpaying for your cellular service, try using a Mobile Virtual Network Operator (MVNO) rather than the more costly big mobile suppliers. MVNO providers deliver the same level of coverage as big carriers but at a reduced cost. This is because they employ the same networks as the Big Three—AT&T, Verizon, and T-Mobile—while offering a vastly different product portfolio. These pay-as-you-go programs enable you to avoid a massive cost while still getting the most out of your mobile device.
The global mobile virtual network operator (MVNO) market was valued at $79.2 billion in 2023 and is expected to grow at a CAGR of 8.8% during 2024-2030, reaching $141.9 billion by 2030.

Know More About MVNO:

• Designing an Impactful User Experience and Customer Support in MVNOs
• How to launch a MVNO with SPENZA
• Introduction to MVNOs in the US: Market Dynamics, Challenges, and Successes

What is MVNO?

A Mobile Virtual Network Operator (MVNO) is a company that provides mobile services by leasing network access from larger carriers, known as Mobile Network Operators (MNOs). Unlike MNOs, MVNOs do not own or operate their own wireless infrastructure. Instead, they purchase bulk access to an MNO’s network and resell it to consumers under their own brand. This allows MVNOs to offer competitive pricing and unique service packages tailored to specific customer needs.

MVNOs often partner with various network operators and service providers, enabling them to deliver flexible solutions at reasonable prices. This makes them particularly appealing for enterprises with international IoT needs or businesses looking for customized mobile connectivity solutions. By operating without the overhead of maintaining a physical network, MVNOs can focus on providing specialized services and customer-focused offerings.

MVNO API

The MVNO API allows you to manage all operations, build multiple business models, and design your tariffs and services. This includes creating applets for both SIM cards and MVNO subscribers. The API offers several key features:

• Act as an HNO despite the absence of a radio network: MVNOs can function with full operational capabilities without owning the physical network.
• Complete control over services and offers: The API provides tools for managing services, offers, and customer interactions.
• SIM management tools and DID allocation: Enables seamless management of SIM cards and direct inward dialing (DID) numbers, ensuring efficient resource allocation.
• Utilizing one’s traffic: MVNOs can manage and utilize their traffic, optimizing network usage and cost efficiency.

Mobile virtual network operator type

There are different types of Mobile Virtual Network Operators (MVNOs), each catering to specific needs and preferences. The most common mobile virtual network operator type are: 

1. Independent MVNOs: These MVNOs operate independently of any Mobile Network Operator (MNO) and lease network access from one or multiple MNOs to provide their own services and plans. They have complete control over their offerings, allowing them to tailor services to specific market segments.
2. Operator-owned MVNOs: These MVNOs are subsidiaries or brands of larger MNOs. They operate under their parent company’s umbrella, often offering specialized plans or targeting specific market segments. This allows them to leverage the resources and network infrastructure of the parent MNO while maintaining a distinct brand identity.
3. Cable company MVNOs: Cable companies that enter the MVNO space leverage their existing customer base and bundle mobile services with their cable and internet offerings. This strategy allows them to offer competitive pricing and integrated service packages, appealing to customers seeking comprehensive connectivity solutions.

These different Mobile virtual network operator types highlight the diverse approaches in the market, providing a variety of options to meet the needs of different customer segments.

Advantages and Disadvantages of MVNOs

Advantages

1. Cost-Effective Plans: MVNOs frequently offer lower prices compared to major carriers because they don’t bear the high costs of network maintenance and infrastructure. This can result in substantial savings for consumers looking for budget-friendly options.
2. Flexible Plans: Many MVNOs provide flexible and customizable plans, catering to specific needs such as low data usage or international calling. This flexibility allows users to choose plans that best fit their usage patterns.
3. No Contract Requirements: MVNOs often offer no-contract plans, providing greater freedom and flexibility. This can be particularly appealing for users who prefer not to commit to long-term agreements.

Disadvantages

1. Network Priority: MVNO customers might experience slower data speeds or reduced network priority during peak times, as they share the network with customers of major carriers. This can impact performance in high-traffic areas.
2. Limited Coverage: While MVNOs utilize the networks of major carriers, the coverage may still vary based on the agreements and priorities set by the host network. This can result in inconsistent coverage in certain areas.
3. Fewer Features: Some MVNOs may offer fewer perks and features compared to major carriers. For instance, advanced services like 5G or specialized customer benefits might be limited or unavailable.

MVNOs provide an attractive alternative to major carriers with their cost-effective plans and flexibility, but potential drawbacks include network priority issues and varying coverage. Evaluating these factors can help you choose the best MVNO option for your needs.

Factors to Consider When Choosing an MVNO

When selecting an MVNO, several factors should be considered to ensure you get the best value and service for your needs:

1. Coverage and Network Quality: Since MVNOs use major carriers’ networks, coverage and signal quality can vary. Check which primary network your chosen MVNO utilises and ensure it covers your area adequately.
2. Plan Flexibility: Evaluate the available plans, including data limits, talk time, and text messages. Some MVNOs offer customizable plans, allowing you to adjust features based on your usage.
3. Pricing and Costs: MVNOs often provide lower rates compared to major carriers. Compare the cost of various plans and any additional fees or charges to find the most cost-effective option.
4. International Roaming: If you travel frequently, consider MVNOs that offer international roaming options. Some may include international coverage in their plans, while others might charge extra.
5. Additional Features: Some MVNOs provide perks like mobile hotspot capabilities, Wi-Fi calling, or streaming services. Evaluate these features to see if they align with your needs.

Choosing the right MVNO involves balancing these factors to find a plan that offers the best combination of coverage, cost, and features for your personal or business requirements.

Best MVNO Carriers

MVNO carriers vary in their offerings, from extensive international coverage to customizable plans. Below are some of the top options to consider

1. Google Fi: Utilizes the best connection from Sprint, T-Mobile, or US Cellular. Offers simple pricing structures and extensive international coverage, making it a top choice among MVNO carriers.
2. Cricket Wireless: Offers reasonably priced plans with no speed limitations, making it a competitive option for cost-conscious consumers and a strong contender among MVNO carriers.
3. US Mobile: Provides a range of customizable plans, including affordable options for backup or emergency phones. Their flexible plans cater to varying needs  and make them a popular option in the MVNO carrier space.
4. Consumer Cellular: Targets older adults with straightforward, no-contract plans. They are known for exceptional customer service and have consistently ranked high in customer satisfaction surveys, distinguishing itself among MVNO carriers.
5. Ting Mobile: Offers flexible plans with affordable rates starting at $10 per month. Ting’s pay-as-you-go model is ideal for users with varying usage patterns, positioning it as a notable MVNO carrier.
6. Xfinity Mobile: Uses Verizon’s network and offers low-cost unlimited plans, available exclusively to Comcast internet customers. This bundling strategy provides significant savings and makes Xfinity Mobile a strong MVNO carrier option for existing Comcast customers.
7. Visible: Provides unlimited plans with straightforward pricing. Visible’s service is based on Verizon’s network, ensuring reliable coverage and performance, making it a reliable choice among MVNO carriers.
8. Mint Mobile: Offers prepaid plans with excellent overall pricing. Their competitive pricing structure makes them an attractive option for budget-conscious consumers seeking MVNO carriers.

Whether you’re looking for an affordable plan or specific features, MVNO carriers provide alternatives to the traditional big-name providers, often delivering similar services at lower costs

Which is the best MVNO?

The best MVNO depends on your needs and preferences. Ensure the best MVNO has service in your location and works with your current smartphone or the phone you plan to acquire. Choose an MVNO with a plan that matches your requirements. MVNOs are a great way to receive the same outstanding service on major networks while dramatically lowering your cell phone bill, potentially saving you hundreds of dollars annually.

Talk to Us

Spenza helps companies become a Mobile Virtual Network Operator (MVNO) within hours, enabling them to offer connectivity services to their customers and create an additional revenue stream for the company. It is an embeddable, API-first operator that lets you sell phone and data plans to your customers without the hassle of setting up your MVNO in every market. Spenza is an authorized reseller of ATT, Verizon, T-Mobile, and dozens of IoT and MVNO operators across the globe, serving dozens of companies. Schedule a time with our connectivity experts.