Lyca Group founder and group chairman Allirajah Subaskaran launched Lyca Mobile with the vision of connecting families and friends irrespective of how far people venture from home. Under Allirajah Subashkaran’s leadership, Lyca Mobile has grown to become a world-leading mobile virtual network operator (MVNO), boasting more than 16 million users globally, with a new customer signing up every two seconds.
This article will look at the role of MVNOs in delivering mobile phone network coverage to consumers at vastly reduced rates compared with traditional mobile network operators (MNOs).
MVNOs rent infrastructure from one or more MNOs. Since an MVNO does not incur the same level of expense as that involved in building and maintaining a network of masts and paying for bandwidth, MVNOs are able to offer consumers low-cost call and data deals, as well as a variety of other benefits.
An MVNO is a communications service provider that does not rely on its own infrastructure to provide connectivity. Instead, MVNOs lease capacity from MNOs at wholesale rates, reselling this to customers at a lower retail price. While MNOs operate their own infrastructure, MVNOs rent it from MNOs.
Since MVNOs do not need to build and maintain infrastructure or pay for expensive radio frequency spectrum licenses, they can afford to mark down their retail costs, enabling them to invest more in marketing as they have low overheads, boosting their chances of selling minutes to customers. MVNOs principally offer prepaid wireless plans on a subscription basis.
An MVNO may rely on another organisation known as a mobile virtual network enabler (MVNE) to handle sales and customer care aspects for them. MVNEs specialise in managing and promoting mobile services. An assortment of different phone pans are available with MVNOs today, with some minor carriers even allowing customers to create their own wireless plan.
Despite the fact that most MVNOs do not offer as many plan features as MNOs – for example roaming and streaming incentives etc. – MVNOs compensate for this by offering special deals on plans, making the MVNO a more attractive proposition for customers on a tight budget.
Most MVNOs offer an impressive range of different handsets, with some working with third-party financiers to provide customers with monthly payment plans. Many MVNOs allow people to bring their own device if they are not in the market for a new handset, provided that it is unlocked and compatible with their network.
Put simply, MVNOs buy phone and data packages in bulk from MNOs, reselling them to their users. MVNOs offer the same connectivity services as MNOs including voice services, SMS services, MMS services, data services and broadband services.
In the United Kingdom today there are numerous MVNOs, making the mobile telecommunications market incredibly competitive. However, in terms of MNOs, the UK has just four: EE, O2, Three and Vodafone.
MVNOs provide the same service as MNOs with no difference to the consumer in terms of connecting to the network, getting online and making calls. The difference between MVNOs and MNOs is only apparent when looking beyond the basics of getting online.
EE, O2, Three and Vodafone tend to offer a variety of different added extras in their mobile deals, for example subscriptions to streaming services, priority concert tickets and technology. That said, MVNOs offer some significant advantages over traditional mobile network operators. As running an MVNO incurs considerably less cost than running an MNO, MVNOs can pass these savings on to customers, offering low-cost call and data packages. In addition, many MVNOs offer a wide range of affordable handsets, although some do not offer handsets at all, instead concentrating on presenting competitive SIM-only deals – an attractive option for customers who already have a handset and are primarily concerned with finding a low-cost plan.
Some MVNOs offer the added incentive of enabling customers to support causes they care about by partnering with socially responsible organisations like Fairphone and Fairtrade or investing in green energy. Meanwhile others, like Lyca Mobile, focus on enabling consumers to make low-cost international calls, allowing customers to keep in touch with their family and friends irrespective of where they may be in the world.
About Lyca Group
Lyca Group is a multinational organisation incorporating 16 subsidiaries operating in a variety of different industries, including telecommunications, healthcare, travel, financial services, technology, hospitality, media and entertainment, and marketing. The company grew from the vision of its founder, Allirajah Subaskaran, who is committed to connecting friends and family all over the world, no matter how far Lyca Mobile customers may venture.
Since Allirajah Subaskaran founded Lyca Mobile in 2006, the company has gone from strength to strength, establishing itself as the world’s largest global MVNO and enabling customers to share meaningful connections no matter how far the distance is between them. Over the years, Lyca Group has thrived and diversified. Bold, agile and daring, Lyca Group and its subsidiaries remain as committed as ever to providing innovative, customer-first experiences.
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