Mobile Virtual Network Enabler (MVNE)
A Mobile Virtual Network Enabler, is an entity that provides infrastructure and services to both the network operators and MVNOs. The MVNE enables the MVNOs to offer their services on the operator’s network.
Within the value chain, there are intermediary IT companies between the mobile network operators and MVNOs, these are called Mobile Virtual Network Enablers or MVNE.
MVNE differs significantly from the other MVNx models. An MVNE does not provide public telecom services. It has no contact to the end-users and is therefore not subject to telecom regulation.
In the event that an MVNE would become interested in providing services to end users as a MVNO, they would be subject to regulation, as a MVNO (in markets that has MVNO regulation).
MVNEs are intermediaries between the mobile network operator (or MVNA) and the MVNOs, they provide a platform with technical solutions and business infrastructure services that help to execute the launch and operation of MVNOs.
These services may include core network and infrastructure elements, billing, administration, operations, business support systems, operations support systems and provision of technological and network elements, among others – for the adequate provision of the service.
Prospective MVNOs often have little relevant experience to guide them through the different steps of the wireless service delivery chain and need to overcome many challenges.
High peak funding, lack of telecom skills and expertise, lack of economies of scale, limited technological and architectural knowledge of the MNO/MVNO ecosystem and operational complexity are among the major barriers to entry faced by potential MVNOs.
While the challenges for the mobile operators include the workload of administering the heavy processes associated with the launch and day-to-day operations of each individual MVNO.
KEY MVNO ENTRY BARRIERS
High Initial Investment
The procurement and integration of IT infrastructure requires a high initial the investment.
Lack of Telco Knowledge
Many companies, with a strong brand and a large customer base, qualify as MVNO candidates but are not attracted to the business due to lack of Telco/MVNO knowledge
Starting an MVNO business is faced with significant operational challenges ranging from using a new unfamiliar billing platform to customer service, managing SIMs, devices, etc.
The MVNE mitigates the barriers to entry for the MVNOs, and eliminate many of the integration issues that could otherwise slow deployment, or even sink the MVNO/MNO business in a market altogether.
Table: MVNO and MNO pain points mitigated with MVNE
The MVNO retains customer ownership and compensates the MVNE for the management of thel layers of the wireless service delivery chain.
MVNE Operational Model/ Architecture
MVNE stack integration example. The MVNE will install Business and Operations Support Systems (BSS/OSS) and Core Elements such as:
- Intelligent Network (IN) / Service control point (SCP)
- Signaling Transfer Point (STP) / Diameter Signaling Controller (DSC)
- Home location register (HLR) / Home Subscriber Server (HSS)
- Session Border Controller (SBC)
- Short Message Service Center (SMSC) / Short Message Service Gateway (SMS-G)
- Interactive Voice Response (IVR) / Voicemail System (VMS)
- Business Support Systems / Operational Support Systems (BSS/OSS)
- Online Charging System (OCS)
- Gateway GPRS Support Node (GGSN) / Packet Data Network Gateway (P-GW)
- Unstructured Supplementary Services Data Gateway (USSDGW)
The host network operator (HNO) is responsible for providing the following network elements:
- Radio Access Network
- EIR (MNO/MVNO)
- DRA (DSC)
- Internet (ISP)
- Public IPs and NAT
MVNE License – No such thing!
MVNE differs significantly from the other MVNA and MVNO models. MVNE is an upstream service provider that does not provide public telecommunications services. It has no contact to the end-users and is therefore not subject to license requirement, like some markets have on MVNO and MVNA.
You may, on very rare occasions come across a national regulatory authority, who has added MVNE under their licensing scheme. One such example is the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ), who have added MVNE under its licensing fee structure.
This however, looks more like a mistake than on purpose, it seems that POTRAZ have mixed up MVNA and MVNE.
- Introduction to MVNA, MVNE, MVNO
- MVNA MVNE MVNO Explained
- MVNO Strategy: Market Differentiation and Segmentation
- Reseller MVNO (Branded Reseller)
- Service Provider MVNO (Thin MVNO)
- Enhanced Service Provider MVNO (Medium MVNO)
- Full MVNO
- Mobile Virtual Network Aggregator (MVNA)
- Mobile Virtual Network Enabler (MVNE)