Service Provider MVNO (Thin MVNO)
Quick Summary
A Thin MVNO (Service Provider MVNO) operates under its own brand, leveraging a specific concept, existing distribution channels, or a large customer base to differentiate itself. While it owns the customers and SIMs, it relies on the host operator for network control and does not own the International Mobile Subscriber Identity (IMSI).
Key Thin MVNO model characteristics:
- Commercial Scope: Provides the ability to set tariff bundles and packages independently, depending on the specific wholesale agreement.
- Operational Responsibilities: Manages customer care, CRM, support, billing (BSS), marketing, sales, and distribution.
- Strategic Value: Captures mobile market share and generates telecommunications revenue or drives an uplift in the operator’s core business bundles.
- Limitations: Incurs costs for IT platforms while having limited access to and control of network routing capabilities.
For the full breakdown—including business model specifics, cost structures, and operational architecture—read on below.
The service provider MVNO (Thin MVNO) operates under its own brand. In the best-case scenarios, the MVNO brings a specific concept, brand, distribution channels, or a large existing customer base to the table, from which it can leverage its sales or differentiate itself from the competition.
MVNO Type: Thin MVNO (Service Provider)
Begins to own the customer relationship. A Thin MVNO has slightly more control than a Branded Reseller, typically managing its own customer-facing operations. This model allows for more flexibility in defining services and customer plans.
What they do: They manage their own customer service and marketing, but still rely on the host MNO for the core network, radio access, billing, and rating.
Key characteristic: They own the Customer Relationship Management (CRM) but delegate most of the other technical and backend network functions to the MNO or a Mobile Virtual Network Enabler (MVNE).
Example: Google Fi (U.S.)
Thin MVNO Model - Advantages
- Self-owned SIMs, customer ownership and relationship is possible, as well as some ability to set tariff bundles and packages independently from the retail prices set by the host network operator, depending on the wholesale agreement model (retail-minus, cost plus, capacity-based, etc.).
- Use the MVNO to capture a share in the mobile market and generate telecommunications revenue—or to drive an uplift in the core business (bundles).
- Focus on addressing a particular niche or segment.ing retail price offer from the HNO.
Thin MVNO Model - Disadvantages
- Costs on OPEX and CAPEX are associated with the IT platforms.
- Limited access to and control of network routing capabilities.
- Owns the customers and SIMs but not the International Mobile Subscriber Identity (IMSI).
Thin MVNO Model - Operational Model / Architecture
- The Service Provider MVNO (Thin MVNO) is normally responsible for the customer care processes, including customer relationship management (CRM), support, billing processes and billing platform (BSS), tariffs, bundles and promotion packages, costs of marketing, sales, and distribution, as well as the OPEX and CAPEX associated with the IT platforms.
Thin MVNO Model - Business Model
- Revenues: from traffic of its own customers (owns the customers, but not the IMSIs).
- Costs: Wholesale rates, marketing, sales, distribution, OPEX/CAPEX associated with the IT platforms.
- Wholesale rates may vary with the type of voice/data/SMS/MMS, e.g., On-Net or Off-Net, National or International (origin/destination).
- Revenues from incoming traffic (Off-Net) would typically belong to the host network operator (HNO).
- In some cases, revenue might be shared with the HNO, i.e., a certain gross margin over the existing retail price offer from the HNO.
See how the Thin MVNO model compares to the Reseller MVNO, Medium MVNO or Full MVNO model in your MVNO Types & Operational Models.
Additional MVNO Type & Operational Models Information
For a visual deep-dive, watch our video on Thin • Medium • Full – MVNO Types and Operational Models.
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