The telecommunications market can be a confusing, acronym-filled place for the uninitiated. First, there are mobile network operators (MNOs), or wireless service providers. These companies own or control all of the necessary elements to sell and deliver cell phone services to customers. In the United States, major MNOs include Verizon Wireless (NYSE: VZ), AT&T (NYSE: T), T-Mobile (NASDAQ: TMUS) and Sprint (NYSE: S). In addition to offering services directly to consumers, MNOs normally obtain additional revenue by selling access to their network services to mobile virtual network operators (MVNOs) at wholesale rates. For consumers, MVNOs provide similar services to those offered by MNOs, but these companies are different because they don’t own their own wireless network infrastructure.
In some cases, MVNOs use their own customer service, billing support systems and marketing and sales personnel, but the upfront capital needed to fund these investments is often too much for newly formed wireless service providers. In order to cut initial costs, MVNOs can employ the services of a mobile virtual network enabler (MVNE). MVNEs provide a full range of network enablement platforms and services to MVNOs without having any direct relationship with the consumer. Benefits for MVNOs include a dramatic reduction in upfront capital expenses and potential savings in wholesale airtime costs resulting from bulk purchase discounts enabled by larger MVNEs.
Elephant Talk Communications Corp. (NYSE MKT: ETAK) is a leading provider of mobile networking software and services following an MVNE model. The company provides a patented cloud-based mobile communications infrastructure, operating software and managed services while enabling MVNOs to offer a full suite of products and high quality customer service without substantial upfront investment.
ETAK already counts several of the world’s leading MNOs and technology firms amongst its customers and partners, but the company took a significant step toward increasing its market share in October when it entered into a cloud service and software license agreement with the wholesale division of a tier one U.S. mobile operator. Following this agreement, the tier one MNO may procure ETAK’s proprietary MVNE services platform for use in the launch of a number of new MVNO brands at a later date.
The costs associated with developing a nationwide communications network are astronomical, so the best entry point for upstart telecommunications firms utilizes the MVNO model. As an established provider of MVNE services with a proven mobile service platform, ETAK is in a strong position to benefit from continued market expansion for the foreseeable future.
For more information, visit www.elephanttalk.com
