Mobile virtual network enabler

A mobile virtual network enabler (MVNE) is a company that provides network infrastructure and related services, such as business support systems, administration, and operations support systems to a mobile virtual network operator (MVNO). This enables MVNOs to offer services to their own customers with their own brands. The MVNE does not have a relationship with consumers, but rather is a provider of network enablement platforms and services.[1]

MVNEs specialize in planning, implementation, and management of mobile services. Typically this includes SIM provisioning and configuration, customer billing, customer relationship management, and value-added service platforms. In effect, they enable an MVNO to outsource both the initial integration with the MNO, and the ongoing business and technical operations management. A related type of company is a mobile virtual network aggregator (MVNA). MVNE is a telecom solution, whereas MVNA is a business model which includes wholesale of an operator's airtime and routing of traffic over the MVNE's own switches.

The benefits of using an MVNE include a reduction in the upfront capital expenses of an MVNO, financing arrangements offered by MVNEs to cover start-up costs, and reduced wholesale airtime costs achieved through economies of scale of hosting multiple MVNOs on a single MVNE platform. Other potential benefits include reduced operational expenses via outsourcing management of business and technical operations, smoother launch processes, and benefiting from previous experience of the MVNE as a negotiating channel for smaller MVNOs to reach a wholesale agreement with the MNO.

Using an MVNE may not be appropriate for all MVNOs. The considerations for this decision are manifold; however, some of the key reasons for an MVNO to not use an MVNE would be:

• The MVNO is large enough to achieve volume efficiency when going direct to the host operator (usually several hundred thousand subscribers).
• The brand and distribution channels are sufficiently strong to negotiate a joint-venture or direct relationship and obtain better margins.
• The MVNO has access to existing telecom infrastructure, for example switches, international capacity, fixed infrastructure, and billing platforms.