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MVNO agreements with network operators date back to the 1990s, when the European telecom market saw market liberalization, new regulatory frameworks, better 2G network technology, and a subsequent jump in wireless subscriber numbers. With European markets newly open to competition and new technology enabling better service and cheaper handsets, there was a massive surge in demand for cellular phones. Despite Sense’s initial failure, the regulator in Denmark saw the promise in the MVNO model as a cost-effective route for telecom companies to enter the market and in May 2000, legislation passed that required network operators with significant market power to open up access to their infrastructure.
By 2008, US wireless subscribers had a choice between around 40 MVNOs. According to the FCC, approximately 7 percent of all U. MVNOs, and analysts found that the 15. 1 million wireless subscribers served by resellers by the end of 2006 had increased by 1. 6 million over the previous year.
Access to basic network infrastructure, like base stations, transceivers, home location registers, and switching centres. Service packaging, pricing, and billing systems, including value-added services like voicemail and missed call notifications. Consumer-facing aspects like sales, marketing, and customer relationship management activities like customer care and dispute resolution.
Because MVNOs are effectively defined by their lack of spectrum licenses, an MVNO necessarily will need to have agreements in place to access the network of at least one MNO. The type of MVNO is determined by how “thick” or “thin” a technological layer an MVNO adds over its access to its host MNO’s network. Sometimes referred to as a “Skinny MVNO”, as the reseller almost totally relies on the MNO’s facilities. They do not own any network elements, but may own and operate their own customer care, marketing, and sales operations.