MVNOs – mobile virtual network operators
Many of you will be using MVNOs now without realising it. A Mobile Virtual Network Operator is a provider of mobile phone services that does not operate its own infrastructure. For instance, Virgin Mobile do not have their own masts or spectrum but use the T-Mobile network to provide their customers with coverage.
More and more companies are becoming MVNOs – just think of Tesco Mobile and ASDA Mobile for two obvious examples. By utilising an established third party network the set up costs in becoming a mobile operator are greatly reduced. For the networks concerned they get an increase in people using their network with all of the marketing and customer services handled by the MVNOs.
Are there any advantages for the consumer? Yes, the virtual network operators offer vastly different tariffs, many of which are cheaper than the host network provider. The more tariffs there are available the more likely it is that you will find one that fits your usage exactly, keeping your costs down.
And the downside? There aren’t any obvious ones. Just make sure you know who the host network is before signing up in case coverage in your area is patchy. It is also possible that you could sign up with an MVNO on the basis that they are hosted by O2, and in the middle of your contract they negotiate a deal with another host, say Orange, and coverage changes!
It could be that Virgin Mobile may have to move hosts in the future, dependent upon the regulators view of the Orange/T-Mobile merger. If they decide that the newly merged company would have too big a chunk of the market it could be MVNO users of their networks who are jettisoned first.