Sign in Subscribe

MVNA Mobile virtual network aggregator

Last updated on 


A mobile virtual network aggregator (MVNA) is a company that acts as an intermediary between mobile virtual network operators (MVNOs) and mobile network operators (MNOs). MVNAs provide services such as billing, customer support, and network infrastructure to MVNOs. In this article, we will discuss MVNAs in detail, including their role in the mobile industry, how they work, and the advantages and disadvantages of using an MVNA.

Overview of Mobile Virtual Network Operators (MVNOs)

Before we discuss MVNAs, it is important to understand what MVNOs are and how they operate. A mobile virtual network operator (MVNO) is a company that provides mobile services to customers without owning or operating its own network infrastructure. Instead, MVNOs lease network capacity from MNOs and sell it to their own customers under their own brand name. MVNOs have become increasingly popular in recent years, particularly among niche markets such as international travelers, low-income consumers, and customers looking for flexible plans with no long-term commitments.

There are several types of MVNOs, including:

  1. Full MVNOs - These are MVNOs that have their own core network, which means they can provide all mobile services to customers independently of the host network operator. Full MVNOs usually have the highest degree of control over their services and pricing, but they require significant investment in network infrastructure.
  2. Service MVNOs - These MVNOs typically focus on providing value-added services such as customer support, billing, and marketing, while relying on the host network operator for network infrastructure and technical support.
  3. Branded Resellers - These are MVNOs that sell mobile services under the brand name of a larger company. Branded resellers often have limited control over pricing and service features, but they benefit from the brand recognition of the parent company.
  4. Ethnic MVNOs - These are MVNOs that target specific ethnic communities, offering services such as low-cost international calling and customized content.

Role of Mobile Virtual Network Aggregators (MVNAs)

MVNAs play a critical role in the MVNO ecosystem, acting as intermediaries between MVNOs and MNOs. MVNAs provide a range of services to MVNOs, including network infrastructure, billing, customer support, and marketing. By outsourcing these functions to an MVNA, MVNOs can focus on their core competencies, such as developing innovative mobile services and marketing their brand to customers.

The primary functions of an MVNA include:

  1. Network infrastructure - An MVNA provides MVNOs with access to a mobile network infrastructure, including radio access network (RAN), core network, and back-end systems. This allows MVNOs to offer mobile services to customers without the need for significant investment in network infrastructure.
  2. Billing and customer support - An MVNA manages the billing and customer support functions for MVNOs, including invoicing, payment processing, and customer service. This allows MVNOs to focus on developing their mobile services and marketing their brand.
  3. Marketing and distribution - An MVNA can help MVNOs market their services to potential customers, as well as distribute SIM cards and other marketing materials. This can be particularly helpful for new MVNOs that do not yet have a strong brand presence.

How MVNAs Work

MVNAs work by leasing network capacity from MNOs and reselling it to MVNOs. The MVNA negotiates a wholesale agreement with the MNO, which allows it to purchase network capacity at a discounted rate. The MVNA then resells this capacity to MVNOs at a markup, allowing the MVNO to generate revenue while still offering competitive prices to customers.

In addition to network capacity, MVNAs also provide a range of other services to MVNOs, including billing, customer support, and marketing. The MVNA typically acts as a service provider to the MVNO, handling the back-end functions of the mobile service while allowing the MVNO to focus on its core competencies.

MVNAs can provide different levels of service to MVNOs, depending on the needs of the MVNO. Some MVNAs offer a full suite of services, including network infrastructure, billing, customer support, and marketing, while others may focus on providing specific services, such as network infrastructure or billing.

Advantages of Using an MVNA

There are several advantages to using an MVNA for MVNOs, including:

  1. Cost savings - By outsourcing network infrastructure, billing, and customer support functions to an MVNA, MVNOs can reduce their operational costs and increase their profitability.
  2. Faster time-to-market - MVNAs can help MVNOs launch their mobile services more quickly by providing access to network infrastructure, billing systems, and customer support services.
  3. Scalability - MVNAs can help MVNOs scale their mobile services quickly and easily by providing access to additional network capacity and other resources as needed.
  4. Flexibility - MVNOs can choose to use an MVNA for some or all of their back-end services, depending on their specific needs and resources.
  5. Focus on core competencies - By outsourcing back-end functions to an MVNA, MVNOs can focus on their core competencies, such as developing innovative mobile services and marketing their brand to customers.

Disadvantages of Using an MVNA

There are also some potential disadvantages to using an MVNA for MVNOs, including:

  1. Limited control - MVNOs may have limited control over network infrastructure, billing systems, and customer support services when using an MVNA.
  2. Dependence on third-party - MVNOs are dependent on the services provided by the MVNA, which can create a single point of failure for their mobile service.
  3. Brand dilution - MVNOs may have less control over their brand and marketing when using an MVNA, which can dilute their brand identity and make it more difficult to differentiate themselves from competitors.
  4. Higher costs - While MVNAs can help MVNOs save on operational costs, they may also charge a markup on network capacity and other services, which can increase the overall cost of the mobile service.

Conclusion

In summary, a mobile virtual network aggregator (MVNA) is a company that acts as an intermediary between mobile virtual network operators (MVNOs) and mobile network operators (MNOs). MVNAs provide services such as network infrastructure, billing, customer support, and marketing to MVNOs, allowing them to focus on their core competencies. While there are several advantages to using an MVNA, such as cost savings and faster time-to-market, there are also potential disadvantages, such as limited control and brand dilution. Overall, the decision to use an MVNA depends on the specific needs and resources of the MVNO, as well as the level of control and flexibility they require for their mobile service.