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Origin, t heory , implementation and future of MVNO
In recent years, the term MVNO, an abbreviation of Mobile Virtual Network Operator is becoming famous in India. As like all other technologies and practices, this alsomade its entry late into India. At present, it is one of fast growing market strategy intelecom sector.
Objective of this document:
The main objective of the document is to have a wide view about MVNOconcept from technical point of view. It also has some light on the business area of this successful concept. So readers can expect more technical data and descriptionsthan non technical discussions.
What MVNO actually means?
As the abbreviation clarifies, MVNO stands for first letters of Mobile VirtualNetwork Operator. Yes, it is a virtual mobile operator. Virtual implies for not havingany dedicated basic infrastructure for operation. They don’t have licensed frequencybands, no base stations, no switching centres and no transmission media. Lot of questions may arise for the reader such as, if a MVNO does not have these facilities,then what else they own to run the business?The answer is very simple. They have their own charging system, optionalHLR and optional Call centre. Among these requisites, charging systems are vital for a MVNO. They purchase the airtime from the MNO (Mobile Network Operator) asbulk and resell them according to the agreed tariffs with the actual MNO. Thus theyare also called as Mobile resellers. They can be literally compared to a parasite butproviding less favour to the host and in fact provide some indirect pressures also.This business model, evolved in Europe had good response all over the worldincluding America, Australia and Asia. In spite of successful MVNOs, there were alsolosers in countries like Singapore and Australia.
Origin of MVNO :
 
Thanks to Sir Richard Branson, CEO of Virgin group. Virgin mobile launchedby virgin group is world’s first MVNO. It was launched in UK by 1999 and now it hasmore than 40 lakhs customers in UK. It is really one of successful business strategyof a successful business man, pioneering this business plan before everyone andstill continues to be market leader in MVNO. As of February 2009, there are over 400active MVNOs operated by over 360 companies. Around 100 companies areplanning to make new ventures and about 72 brands run by various MNOspretending to be MVNOs.Countries including Germany, Netherlands, France, Denmark, UK, Finland,Belgium, Australia and US have the most MVNOs. In these countries the MVNOmarketplace is stabilizing and there are some well-known MVNO successes. Other countries, such as Portugal, Spain, Italy, Croatia, Baltics, India, Chile, Ireland andAustria are just beginning to launch MVNO business models.
Ideology behind the MVNO business model:
MVNOs can operate with any available technology like GSM or CDMA,making them more resistant for market response. Another highlight feature of MVNOs is they can set their own tariff plans subject to accommodating MNO. AMVNO’s role and relationship to the MNO vary by market, country and the individualsituations of MVNO and MNO.Even rMVNO (roaming mobile virtual network operator) is also available for roaming services. In this type of service, a VLN (Visitor Local Number) will beallocated for each country the subscriber visits. In this aspect, MVNOs are exploringall possibilities to work with MNOs. Even well known MNOs are trying to declare their own MVNO brands. Telia in Sweden operate a MVNO brand “Call Me”. BrandedMNVOs or BMVNO are also available like Virgin mobiles. The main difference ismore creative and customer orientation from BMVNO than ordinary MNOs.
Terminologies used:
There are several nomenclatures used in this field such as MVNO, rMVNOand MVNE (Mobile Virtual Network Enabler). Out of them MVNO and MVNE literallyserve for similar cause and rMVNO alone differs significantly by providing roamingservice and transparency in international tariffs. MVNEs can be termed asconsultants that provide solution for a MVNO setup and operation.
Implementation:
 
Let’s have an example of MVNO implementation. This is one of real timeimplementation of MVNO. General conditions and assumptions are.1.The MNO has both 2G and 3G network.
2.
Name of MVNO is assumed as Sample and supports CAMEL Ph2.
3.
Name of MNO is assumed as Host and support CAMEL Ph3+.4.MVNO supports only prepaid subscriptions.
5.
The MVNO has IN and charging systems, back office such as call centresand customer centres only.6.It does not have HLR, VLR and other switching infrastructure.
7.
The SIM used is 32K 3G card compliant with GSM 11.11.8.It shares same IMSI series of MNO but dedicated IMSI range.9.It shares the HLR of MNO but with dedicated number series.10.It uses the roaming operator agreements of MNO for outbound roaming.11.MVNO is allowed to use only 2G network.12.MVNO has to use own IVR platform.13.MMS, 3G, call forwarding and call barring not allowed.14.The MNO has twin STP configuration and all other network nodes areconnected with the STPs.15.The MVNO has twin SCP with redundancy feature and in turn they areconnected to STP.
Link configuration:
1.2 individual signalling links between two STP and two MVNO SCPs.2.2 individual E1 voice links between two GMSCs and two MVNO IVR nodes.Signalling configuration is inevitable but does the voice link between MVNOIVR and GMSC is necessary? – Yes, as per the configuration the MVNOwants to play their own announcements and IVR content for subscribers sothey have customised IVR nodes. In order to play announcements, voicecircuits are needed and it should be connected to node that supports 64kbpstraffic. As MNO has two GMSCs namely GMSC1 and GMSC2, the MNO IVRnodes are connected to MNO’s GMSC nodes.
Network diagram:
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