Ever seen MVNO
and not been sure of what it means? MVNO stands for Mobile Virtual
Network Operator. These are companies that provide mobile phone
services but has to rely on other networks in order to operate. It
does not own the infrastructure that allows the phones to operate, it
merely sells the phone and plans and uses a company that owns the
network to run them.
How This Works
An example of an
MVNO is a prepaid cell phone provider. The business selling the
prepaid phones and plans enters an agreement with the mobile network
operator (big names such as AT&T and Verizon) to access bulk
wireless services at reduced rates, in order to increase prices to
sell to customers. The MVNO is able to piggyback the mobile service
network without having to invest in its own infrastructure.
Popular MVNOs
1. Virgin-
one of the earliest and most successful MVNOs, Virgin Mobile has a
very wide range of phone and plan options; a lot of phones found at
Virgin can only be purchased through a contract service provider, a
good example of this being the iPhone. Plans range from $35-$55, and
have varying features with each.
2. Straight
Talk- offered through
Walmart, this prepaid cellular phone company is a very popular choice
for those who do not wish to enter into a contract with mobile phone
providers. Straight Talk operates on Verizon’s network, and offers
a wide variety of phone plans, from a basic $30 a month plan that
includes talk time, texts, and data, to the $495 a year plan, which
includes unlimited talk, text, and data for a full year.
3. iWireless-
this MVNO is offered through
Kroger, and operates on the Sprint network. They offer a wide
selection of phones, from basic phones to 4G smart phones, along with
a few different plan options. Plans start at $10 a month for basic
texting and talk times, and go up to $75 a month for unlimited
features.
4. Boost
Mobile- not specifically
offered out of a retailer, Boost Mobile is an independent MVNO that
is very successful. It too runs on the Sprint network, and has a
wide selection of phones and plans. A great feature of these plans
is the price shrinking, where on time payments mean a lower bill.
Benefits of
MVNOs
So why choose an
MVNO? What makes it better than a service provider? MVNO mobile
providers are a great option for those who do not want to be stuck in
a contract. Contract phones are costly, and run on the same networks
as a lot of MVNOs. For budget conscious people, one of these mobile
carriers is the better choice. Many even have their own staff of
support and help centers, so you don’t have to deal with the
contract carrier’s help centers.
The biggest draw
is cost—compare an average phone bill of $45 on an MVNO plan, to
that of upwards of $100 with a contract plan. MVNOs are
revolutionizing the way the mobile phone industry is operating,
making cellular service even more readily available. Mr Issa Asad.
