If you're considering launching your own mobile service, you're entering an exciting yet complex space. In this article, we’ll discuss the functions of a Mobile Virtual Network Aggregator (MVNA) and explore how, with the right tools in place, you can reduce the cost and complexity of launching a mobile service and put more resource into what you do best - creating a compelling brand and delivering exceptional customer experiences.
What is an MNO, MVNA, MVNE and MVNO?
Before we dive into the MVNA model, let’s clarify a few common telecom acronyms:
Mobile Network Operator (MNO): Sometimes referred to as carriers or networks, MNOs own the network infrastructure that enables mobile connectivity. Examples of MNOs include AT&T, Verizon and T-Mobile. MNOs sell connectivity directly to consumers, but also sell network access at wholesale rates to other, smaller providers (MVNOs).
Mobile Virtual Network Aggregator (MVNA): An organization that buys network access at wholesale rates from MNOs and sells it on to MVNOs.
Mobile Virtual Network Enabler (MVNE): An organization that provides MVNOs with the operational support systems necessary to run a wireless service, including network access, billing software, SIM provisioning, CRM and regulatory compliance. In telecom, these operational systems are known collectively as OSS and BSS.
Mobile Virtual Network Operator (MVNO): A company that sells phone and data plans directly to consumers but does not own the network infrastructure. Examples of MVNOs include Consumer Cellular, Mint Mobile and Cricket Wireless.
To dive deepr, read our blog: MNO, MVNA, MVNE, MVNO: What’s the difference?
The MVNA model
MVNAs were once the linchpin for brands looking to break into the telecom market. They act as intermediaries between MNOs and MVNOs, allowing the latter to purchase wholesale connectivity at cheaper rates than they would get by going direct to individual MNOs.
The MVNA model makes running a wireless service cheaper and easier for several reasons:
Aggregation: MVNAs bulk buy network services from multiple MNOs then sell them on to MVNOs. Thanks to economies of scale, they can provide MVNOs with connectivity at more affordable rates than the MVNOs could secure by negotiating directly with each MNO.
Global reach: Because MVNAs work with multiple carriers, it’s possible for MVNOs to launch their mobile service in multiple markets without the cost and complexity of integrating with each carrier. This allows MVNOs to scale quickly and reduces their reliance on a single network.
Regulatory compliance: Telecom is a highly regulated industry, and each market has its own regulatory requirements and consumer protections. Some MVNAs handle compliance on behalf of MVNOs, ensuring they meet the necessary industry standards.
For years, MVNAs offered MVNOs a cheaper and more efficient way to purchase connectivity. But as technology has advanced, so have the challenges and limitations of the MVNA model.
The drawbacks of the MVNA model
Legacy systems: Many MVNAs rely on outdated technology, which can make integration difficult and costly. These legacy systems can slow down your time-to-market and inhibit your ability to innovate.
Upfront commitments: MVNAs require upfront volume commitments, which means you will be required to take on substantial risk when launching your wireless service.
Operational fragmentation: MVNAs do not offer the full suite of services necessary to run an MVNO, such as billing, SIM provisioning, customer service and CRM. Companies that work with MVNAs will need to source these services from alternative providers or build them in-house.
One-size-fits-all approach: The MVNA model often follows a rigid structure, offering a standardized service that doesn’t accommodate the unique needs of your business. This lack of flexibility can stifle your ability to differentiate your offering in a competitive market.
The bigger picture: Connectivity is just one piece of the puzzle
Launching a wireless service involves much more than just securing connectivity. Before you’re ready to onboard your first customer, you'll need to consider everything from SIM provisioning to customer service.
The cost of building your own telecom operating system from scratch would be immense, which is why even the most established brands rely on prebuilt solutions to manage the many moving parts of their mobile service.
Regulatory compliance: To simplify what would otherwise be a time-consuming and meticulous regulatory process, you can partner with a provider that handles all legal and compliance aspects on your behalf. This means your business won’t have to navigate complex telecommunications laws, deal with licensing, or worry about network regulations.
Checkout: Developing a checkout system in-house can take weeks of engineering effort. Partnering with a provider that offers a fully optimized, ready-made checkout solution will speed up your time-to-market.
Billing: Handling billing is resource-intensive without the right software in place. Beyond payment acceptance, you’ll need a robust billing engine capable of managing various functions, including processing refunds, handling disputes, and calculating taxes based on each market’s regulations.
SIM and eSIM provisioning: Provisioning SIMs and eSIMs can be logistically challenging. The right partner will offer a streamlined activation process, allowing your customers to get connected with one tap.
Subscription lifecycle and CRM: Without the right tools in place, mundane tasks like number porting, top ups and customer service can quickly overwhelm your business. To avoid sky-high operational costs, look for a partner that offers advanced automation tools and AI-powered customer service to handle these tasks efficiently.
Analytics: Unless you’re constantly analyzing conversion rates, churn, and usage, you’re flying blind. By leveraging powerful analytics software, you can optimize your positioning, pricing and messaging for success.
Many providers claim to offer an end-to-end service, but more often than not their offerings are not fully comprehensive. For this reason, you may have to work with multiple partners to manage the many aspects of your operations. This fragmented approach can lead to a cycle of dependencies where fixing one problem causes another.
The modern solution: An end-to-end platform
Gigs is the first and only platform to harmonize all the building blocks of telecom, making it possible to deliver a premium service on a global scale with just one partner.
Through a single API integration, Gigs provides access to connectivity from the world’s best networks, and takes care of all regulatory requirements, billing systems, SIM provisioning, subscription lifecycle and customer service, so you don't have to.
By partnering with Gigs, you're not just getting connectivity at wholesale rates; you're gaining the ability to scale your wireless service internationally without the headache of dealing with fragmented systems or legacy infrastructure.
With unparalleled automation, world-class UX, and superior conversion rates, Gigs provides everything you need to succeed. To find out more, get in touch with our team.