To summarize:
MVNO, Xaco?
What is an MVNO?
The acronym MVNO stands for Mobile Virtual Network Operator. An MVNO is a telephone operator that does not own a mobile network or infrastructure. Therefore, operators contract with traditional mobile operators such as Orange, Bouygues or SFR (they are MNOs of mobile network operators) in order to be able to operate their networks.
For the record, the MVNO appeared in France in 2005. NRJ Mobile is considered the first true MVNO in France, followed by Virgin Mobile and all others. At the time, NRJ Mobile offered prepaid cards on the Orange mobile network, and then also developed plans with or without commitment, and blocked plans through the SFR network, Orange and Bouygues Telecom’s networks.
At the time, MVNOs were attractive because they could offer particularly competitive prices. In 2007, Virgin Mobile caused a stir when it launched its first €1 SMS offer. According to Arcep, MVNOs had a mobile market share of 5% in 2008 and gradually increased in subsequent years, reaching 11.7% in 2014. At that time, there were 45 virtual operators with nearly 9 million customers.
However, MVNOs have generally been on a downward trend in recent years, with a market share of 8.9% in the third quarter of 2021, according to the Arcep website.
The MVNO operates the MNO (traditional operator) network / © kwgeek
How do MVNOs work?
On the one hand, we have the classic operators, the MNOs like Orange, Bouygues, SFR and Free. MVNOs operate the MNO network. This relationship can be direct or through intermediaries, MVNE and MVNA.
MVNEs, or Mobile Virtual Network Supporters, are companies that help MVNOs with their network operations. They facilitate relationships with mobile network operators and provide administrative, logistical and sometimes even accounting support.
An MVNA or Mobile Virtual Network Aggregator is an intermediary that buys network consumption units in bulk from MNOs and resells them to MVNOs.
Regarding network quality, MVNOs generally have to provide the same quality as the operators on which they operate the infrastructure. However, the reality is that traffic can sometimes vary, even if there is no evidence that this is a voluntary restriction by the MVNO.
The relationship between traditional operators (MNOs) and MVNOs can be direct or through intermediaries, MVNEs and MVNAs / © kwgeek
Customers often gravitate towards MVNOs due to lower prices than traditional carriers. This tariff positioning is mainly due to the fact that MVNOs don’t spend money to maintain the network, as well as the way they subscribe and the customer service they provide.
In fact, unlike traditional carriers, MVNOs have no stores or at least no physical locations where customers can go. So the only way to subscribe to their offer is to browse their website. After subscribing, you will receive a SIM card within the next few days that can be inserted into your mobile phone to benefit from the plan of your choice.
Like traditional carriers, you’re also likely to carry a smartphone, but it’s also generally more expensive than traditional carriers.
Regarding customer service, you must also communicate via the website or via email. Some MVNOs have the advantage of offering telephone customer service.
Different Types of MVNOs
There are several categories of MVNOs. In this article, we have listed for you the main types of MVNOs and examples of each. There are MVNOs for the masses and MVNOs for professionals on the market.
- Low Cost or General Public MVNOs: While MVNOs by definition should already be more affordable than traditional operators, low-cost MVNOs go further, offering very low prices due to their control over operating costs. example: Price
- Ethnic MVNO: These MVNOs, with their oddly named names, are an old category that offers customers packages or prepaid SIM cards based on their nationality or place of residence. Basically, the idea is to offer very attractive foreign phone rates for expats, tourists or cross-border commuters. example: Laikamobile
- MVNOs for Professionals: These MVNOs offer mobile services specifically for companies, and sometimes company-specific services. example: Alpha link
- Trademark License: These MVNOs target a defined customer base based on well-known brands. example: NRJ-Mobile
- The “complete” MVNO: This type of MVNO has all the features of a traditional mobile operator (voicemail platform, mobile phone switching center, and interactive voice server), except for network coverage. example: Auchan Telecom
Classic Operators vs MVNOs: What’s Changed?
In France, there are four telephone operators: Orange, SFR, Bouygues Telecom and Free Mobile. Orange is the leading operator in terms of subscriber numbers, while Free Mobile leads the way in terms of 5G coverage in the region.
The so-called “classic” operators are those responsible for all phases of service delivery. Therefore, in addition to providing access to the network, they are also responsible for marketing, sales, billing and customer support.
The real difference between traditional operators and MVNOs is that they own their own infrastructure, including network antennas, cables and all the necessary equipment. As mentioned above, it is precisely because these infrastructures have no maintenance and development costs that MVNOs can be so competitively priced. They don’t have the same fees as traditional carriers.
Apart from the fact that the MVNO does not have its own network and therefore uses the legacy operator’s network, other differences separate the two operators.
Most MVNOs offer non-binding offers, few of which offer packages with additional services, while traditional operators offer free or paid options such as Multi-SIM or international passes.
However, the network quality provided by an MVNO does not imply poor network quality, as the MVNO should provide the same quality of coverage as the traditional operators that operate the network. This is due to the fact that operators supplying a network to an MVNO are legally obliged to provide the latter’s customers with the same network performance as their own customers. Arcep monitors compliance with these obligations.
So whether you get your plan from Orange or Sosh on the Orange network or Prixtel or SFR on the SFR network, in principle you will benefit from the same network quality and the same speed.
Major French MVNO
The Arcep website lists all the MVNOs accredited in France. In this article, we have chosen to keep only the most well-known parts of them. Find the main MVNOs available in France in the table below:
To find a complete list of all MVNOs operating in France, see the dedicated page on the Arcep website.
Advantages and disadvantages of MVNOs
To better guide your choice, it’s important to understand the pros and cons of MVNOs. Do the savings you realize on the subscription price involve any concessions?
Advantages of choosing an MVNO over a traditional operator
The main advantage of MVNOs is to offer more competitive prices. Their offers are also more flexible than those of traditional carriers. By choosing an MVNO, you don’t have to worry about termination fees, most plans are non-binding, and registration is quick and easy.
Fast commissioning of your package is also an advantage. Whether it’s subscriptions or customer service, everything happens through the MVNO website. You will retain the freedom to change the offer as needed so that you always have the package that interests you the most.
MVNO products cover all needs, whether you need a plan with very little data to make calls, or you are a data-heavy consumer. For example, you can benefit from targeted packages that facilitate international exchanges.
Also, offers are updated very frequently and there are often interesting promotions on package prices.
Disadvantages of choosing an MVNO over a traditional carrier
Promotional offers from MVNOs are too time-limited and force consumers to stay up-to-date so as not to miss anything. Also, customer service can sometimes leave something to be desired, prompting some of their customers to declare themselves dissatisfied.
The MVNO is also suspected of being restrained. Even though this should not be the case legally, there is a lot of customer feedback complaining about it. Considering the fact that MVNOs buy wholesale from MVNAs for the amount of communications they provide to customers, it seems logical that if they pay based on the amount consumed, they would tend to throttle speeds, especially if they’re just getting in.Big cities and other time zones
It is impossible to choose the network on which the MVNO will operate. Granted, some MVNOs have exclusive contracts, but some operate multiple different networks. In the latter, the assignment of the network is done randomly. You can no longer choose one network over another like you used to. When you want to join Orange’s network, it can be frustrating to end up on Bouygues Telecom’s network and vice versa.
On the other hand, very few MVNOs currently offer 5G. It’s only available as a paid option on Prixtel and La Poste Mobile, or reserved for the most expensive plans on Cdiscount Mobile.
That’s it for the comparison of MVNOs and traditional operators. Now it’s up to you to choose…