A small report about MVNO. What is it? how does it work? Examples of MVNO in Saudi Arabia

1. Mobile virtual network operator (MVNO)
Ibrahim Mohammed Alghamdi
1208401
What is MVNO:
It is a company that provides mobile phone services but does not have its own
licensed frequency allocation of radio spectrum, nor does it necessarily have all of
the infrastructure required to provide mobile telephone service. A company that
does have frequency allocation(s) and all the required infrastructure to run an
independent mobile network is known simply as a mobile network operator (MNO).
MVNOs are roughly equivalent to the “switchless resellers” of the traditional landline
telephone market. An MNO that does not have a frequency spectrum allocation in a
particular geographical region may operate as an MVNO in that region.
How does it work:
In simple terms, MVNO buy voice and data packages in bulk from the MNO and sell it
to their subscribers.
When a user's gets a package, say 1000 SMS/Voice + 1GB data, they do not use all of
it, on an average. This fact is used by the MVNO's to buy and sell plans.
Some MVNO's may be very small and specialized and MNO's may not be interested
in serving them. In which case they will go to an Aggregator (MVNA) and buy the
wholesale voice, SMS, data packages from them. Some MNO's create a special arm
that acts as an Enabler (MVNE) for MVNO & MVNA to avail services from.

2. Types of MVNOs:
There are different types of MVNO's as shown below in figure. They offer different levels
of independence from an MNO. The end user may generally not see much difference but
it allows the MVNO's to wieldinfluence over the MNO's and make sure their subscribers
are offeredsimilar services and priority.
MVNO classification
-Business MVNOs: provide bespoke services to businesses
-Discount MVNOs: provide cut-price call rates to market segments.
-Lifestyle MVNOs: focus on specific niche market demographics.
-Advertising-funded MVNOs: build revenues from advertising to give a set amount
of free voice, text and content to their subscribers.
-Ethnic MVNOs: target ethnic communities by providing inexpensive calls to their
home country.
Example:
In Saudi Arabia we have three MNOs and dependingoneachone of themthere isa
MVNO. As described in Communications and Information Technology Commission
Website in 2014.
MNO Host MVNO
Mobily Labara Mobile
STC VirginMobile
Zain AxiomTelecom

3. References:
https://www.mvnodynamics.com/mvno/
http://www.masmak.com/email/75749580/11/% D8% 9FMVNO-
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https://bestmvno.com/what-is-an-mvno/
www.valoris.com/docs/MVNO_basics.pdf