A Mobile Virtual Network Operator (MVNO) is a mobile operator that does not own its own spectrum and usually does not have its own network infrastructure. Instead, MVNOs have business arrangements with traditional mobile operators to buy minutes of use (MOU) for sale to their own customers.

An MVNOs roles and relationships to the MNO vary by market, country and the individual relationship of the MNO and MVNO. In general an MVNO is an entity or company that works independently of the operator and can set its own pricing structures, subject to the pricing structure agreed with the MNO. Usually, the MVNO does not own any GSM, CDMA or other core mobile network related infrastructure, such as Mobile Switching Center (MSC) or a radio access network. Successful MVNOs are those that position their operations so that customers do not distinguish any significant differences in service or network performance yet offer some special affinity to their customers.

MVNOs have full control over branding, marketing, billing, and customer care operations. While sometimes offering operational support systems (OSS) and business support systems (BSS) to support the MVNO, the incumbent mobile operators must keep their own OSS/BSS processes and procedures separate and distinct from those of the MVNO.

The major benefit to traditional mobile operators cooperating with MVNOs is to broaden the customer base (sell additional MOUs) at a zero cost of acquisition.

It is likely that incumbent mobile operators will continue to embrace MVNOs as a means of deriving revenue to offset the enormous cost of building 3G networks.

As more MVNOs expand in the marketplace, they are likely to first target prepaid customers as a means of low cost market entry themselves. Most regulating bodies are in favor of MVNOs as a means of encouraging competition, which would ultimately lead to greater choice and lower prices. With the advent of the MVNO, many incumbent mobile operators will evaluate the opportunity to offer supplementary MVNO services of their own. To do so, existing mobile operators will use their established branding, service knowledge, and supplier relationships to compete against independent MVNOs.