Avoid the costly duplication of network assets
Selling wholesale access is a way for host mobile networks to offset costs
MVNOs not only benefit the end-users but they also support other private players active in the sector – and more particularly MNOs. By buying wholesale access from network operators, MVNOs generate additional revenue streams for MNOs and avoid the costly duplication of networks assets. Indeed, in order to keep pace with demand and technological innovation, MNOs regularly need to invest money in broadband infrastructure. Selling access to this newly-built infrastructure to MVNOs is a way for MNOs to offset expenditures and bring about economies of scale for better network utilisation. Likewise, the fees paid by MVNOs to gain access to the MNOs’ network can be re-invested in state-of-the-art broadband infrastructure (e.g. 5G) and in the digital development of challenge areas, where mobile connectivity is limited or non-existent.