Mobile Virtual Network Enabler
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A Mobile Virtual Network Enabler (or MVNE) is a company that provides services to mobile virtual network operators, such as billing, network element provisioning, administration, operations, support of base station subsystems and operations support systems, and provision of back end network elements, to enable provision of mobile network services like cellular phone connectivity.
A MVNE does not have a relationship with end-user customers. Instead, an MVNE provides infrastructure and services to enable MVNOs to offer services and have a relationship with end-user customers. MVNEs offer the ability for an MVNO to focus on their core strengths of brand, customer loyalty and marketing and leave the back-end enablement to MVNEs. They also have shared risk-reward arrangements with the MVNO with various kinds of revenue sharing models, usually tied to the number of subscribers that the MVNO has projected in their business plan.
From a systems standpoint, designing MVNEs is a complex process that includes taking commercial off-the-shelf applications and converting them to work in a multi-tenancy model in a seamless fashion.
According to Pyramid Research [1], there are three main categories of enablers, according to their MVNO solutions:[citation needed]
Aggregator MVNEs: these offer consulting and integration services and have bundled all of the back-office network components through alliances. These promote their ability to quickly provide order-to-cash solutions to MVNOs. Companies include Ztar and TMNG.
Aggregator MVNEs with their own platforms: this includes aggregators which have developed one or more back-office solutions internally, and have complemented them with partnerships to provide end-to-end enablement services. Companies include ASPIDER Solutions (The Netherlands), FREEDOM4 WiFi (UK), Qualution (USA), and Elephant Talk (The Netherlands).
Specialised enablers: these offer only parts of the back-office network such as messaging platforms, data platforms and billing solutions. They are not solely focused on the MVNO market. Companies include:
- ASPIDER Solutions (The Netherlands) - FREEDOM4 WiFi (UK) - Elephant Talk (The Netherlands) - Tyntec - LogicStar (Canada) - MetraTech Corp - Convergys
The voice-centric, operationally "light" MVNOs of today have generally worked with an aggregator MVNE that managed the limited back-end operations on behalf of the MVNO. The new breed high-end, strong brand MVNO is transforming the dynamics of the MVNE market. Besides leveraging their own existing assets, they choose to own more of their platforms, particularly their logistics, distribution and customer care systems. They still work with MVNEs, but they tend to opt for specialised ones with best-of-breed solutions and a strong reputation.
In addition MVNAs (Mobile Virtual Network Aggregators) are being established who have their own master MVNO agreement, all the necessary infrastucture and hosted systems and can set up a client as their own MVNO is a much shorter time at a lower cost than them getting their own MVNO agreement.
