Light and Full MVNO. What is the difference?

What is an MVNO? 

In simple terms, an MVNO (Mobile Virtual Network Operator) is a telecom provider that offers mobile services without owning its own network infrastructure. Instead, an MVNO leases network access from a traditional mobile network operator (MNO) like BT or EE in the UK, or Verizon and T-Mobile in the US. These MNOs are responsible for developing and maintaining the radio access network (RAN), while MVNOs focus on delivering mobile services to customers. 

Full and Light MVNOs – What’s the Difference? 

MVNOs come in two primary forms: Light MVNOs and Full MVNOs. These models differ based on the level of control the operator wishes to have over its services and operations, the investments required, and the overall business strategy. The choice between a Light or Full MVNO depends on factors like costs, market positioning, and desired service offerings. Let's explore the distinctions further. 

What is a Light MVNO? 

A Light MVNO is a mobile operator that outsources the operational management of its network to the host MNO, focusing on customer engagement, sales, customer service, and marketing. 

This model allows businesses to launch a mobile service without the need for significant infrastructure investment, making it particularly appealing for companies whose core strength lies in marketing. Retail giants like Tesco, Aldi, and Auchan have successfully used the Light MVNO model to offer mobile services, leveraging their large existing customer bases without needing to build telecom infrastructure. 

Explore an inspiring case study of a successful Full MVNO, SMARTY, by visiting our page. 

What is a Full MVNO? 

A Full MVNO operates similarly to a traditional MNO, but with greater autonomy. Full MVNOs enter into agreements with an MNO to purchase bulk network access at wholesale rates. However, unlike Light MVNOs, Full MVNOs own their own core network infrastructure (such as OSS/BSS systems that manage GSM, 3G, and 4G networks), although they do not own the radio frequency spectrum or the antennas. 

This setup allows Full MVNOs to: 

• Set their own retail pricing 

• Develop value-added services tailored to customer needs 

• Manage their own subscriber base and SIM card production 

Because of these capabilities, Full MVNOs have greater flexibility and can generate additional revenue streams by interconnecting with other operators, for instance, by receiving income from call terminations. 

How to Choose Between a Light or Full MVNO? 

When deciding between a Light MVNO and a Full MVNO, telecom operators should weigh several key factors: 

• Budget and Costs: Full MVNOs require a higher upfront investment, as they must invest in core network infrastructure, OSS/BSS systems, and more. Light MVNOs are a more budget-friendly option with fewer infrastructure costs. 

• Business Objectives: Full MVNOs offer greater autonomy and flexibility to personalise offerings, manage customer relationships, and build unique services. If you want to directly manage your subscriber base and customise your product offerings, a Full MVNO might be the better choice. If your focus is on marketing and customer service, with a more streamlined approach, the Light MVNO model is ideal. 

• Scalability: If rapid expansion and the ability to offer a range of services are key goals, both full and light MVNOs can equipped for scalable growth. 
• Timelines: For brands launching an MVNO from scratch and deciding between a light or full MVNO model, the light MVNO is the faster option. To accelerate the launch, an MVNO can use a Mobile Virtual Network Enabler (MVNE), which provides the services needed to bring the offering to market in less than three months.
  
  

Why Lifecycle Software is the Right Partner 

Lifecycle Software is the perfect partner for operators looking to launch or expand an MVNO. Our experience and flexible solutions are designed to help you successfully navigate the MVNO landscape. We understand that an agile BSS platform and real-time charging capabilities are essential for implementing innovative strategies. Whether you are launching a new MVNO from scratch or updating an existing brand, we provide seamless integration, from concept to launch, and ensure a smooth migration of customers with minimal impact.

Download our guide “5 Steps to Launching an MVNO” here.

Our extensive suite of agile solutions offers various pricing models and product options, allowing you to deliver unique value propositions in record time. Ready to explore the benefits of launching an MVNO?

Discover how Lifecycle Software can help you develop or expand your MVNO by getting in touch with us today.