What is virtual mobile network (MVNO)?

Vietnam had the first virtual mobile network called I-Telecom using the 087 number. So what is virtual mobile network, how does it work and what benefits does it have? Let's find out through the article below.

Mobile Virtual Network Operator (MVNO) is the mobile network that the provider does not own the network infrastructure but also buys a large packet of traffic to access the network service of another mobile network provider and provides the service. Mobile service with a separate retail price for customers.

What is virtual mobile network (MVNO)? Picture 1

Operators who do not use their own infrastructure are considered a virtual network operator, while large operators are considered real networks.

The difference between the 'wholesale' price of both the large traffic package and the retail price to the customer is the profit that virtual network operators have.

With the MVNO model, virtual operators can make money from markets, small groups of customers that big carriers cannot reach or do not enter on their own for less profit.

Reselling your unused traffic instead of not helping big carriers can share operating costs and quickly recover the initial investment. Meanwhile, virtual network operators can immediately enter the mobile network business without the cost of building infrastructure and saving time.

The MVNO model has been around since the 1990s in the UK, then deployed to many other European countries. But until now, the new virtual mobile network model has appeared in Vietnam.