MNOs vs MVNOs: What’s the best choice for IoT?

Mobile communication networks have come a long way since the launch of the first 1G network in Japan in 1979, followed by the US in 1980. Decades later, 5G deployments began in the USA in 2018 and expanded across Europe by the end of 2020.

As networks advanced, mobile network operators (MNOs) built and maintained the infrastructure, while mobile virtual network operators (MVNOs) used their networks to offer more flexible and affordable service without owning physical infrastructure.

The expansion of IoT brings a greater need to choose the right network: MNO or MVNO? The right IoT SIM card can simplify network switching and global device management, but not all providers offer the same capabilities. In this article, we’ll break down the key differences between MNOs and MVNOs and help you decide which option best supports your IoT needs.

What is an MNO?

An MNO is a telecommunications provider that owns and operates its own infrastructure, like mobile towers, base stations, and core networks. By providing direct access to their cellular networks, MNOs offer a high level of control over network services. Industries such as healthcare, smart cities, and agriculture depend on MNOs for secure and reliable IoT connectivity. Thanks to their wide coverage and strong relationships with regulators, MNOs are well-equipped to support large-scale IoT deployments across multiple regions.

What is an MVNO?

An MVNO is a telecommunications provider that does not own its own network infrastructure. Instead, it leases network access from MNOs and resells services to end-users, offering similar connectivity with more flexible pricing and plans. For industries scaling IoT solutions, MVNOs can be an appealing choice, providing cost-effective options with tailored pricing and flexibility without sacrificing performance.

Key differences between MNOs and MVNOs

While both MNOs and MVNOs provide network connectivity, they operate differently. MNOs own the network infrastructure, while MVNOs lease access to it. These differences can significantly impact which option is best for your IoT strategy, as shown below:

Overall, deciding between an MNO and an MVNO for your IoT strategy affects efficiency and effectiveness, with MNOs offering more control and scalability, while MVNOs provide cost-effective, flexible options.

Looking ahead to the 6G era

As we look ahead to the launch of 6G networks around 2030, both MNOs and MVNOs will play crucial roles in shaping the future of wireless communication. While 5G is already impacting industries by offering faster speeds and lower latency, 6G will take these advancements even further, offering speeds up to 100 times faster than 5G. For MNOs, this new era presents an opportunity to leverage their infrastructure to support even more data-intensive applications like smart cities, autonomous vehicles, and industrial automation. As 6G unfolds, MNOs will likely expand their services, partnering with MVNOs to scale coverage and make the most of their networks.

MVNOs, on the other hand, will have the chance to capitalize on 6G’s enhanced capabilities by offering highly specialized solutions for industries such as IoT, healthcare, logistics, and manufacturing. With the ability to customize network slices and leverage eSIM APIs for seamless connectivity, MVNOs can provide tailored services that cater to the unique needs of these sectors. This flexibility will allow MVNOs to move beyond traditional mobile plans, offering innovative, data-driven solutions.

As both MNOs and MVNOs adapt to 6G, the future will bring even more opportunities for collaboration, customization, and innovation in an increasingly connected world.

Navigating global IoT connectivity options

MNOs and MVNOs both provide essential connectivity, but they serve different needs. MNOs own the network infrastructure, offering reliable, large-scale coverage, while MVNOs use that infrastructure to provide more affordable, flexible options. Understanding the difference between the two is key to making the right choice for your business. As technology like 5G and IoT continue to grow, the relationship between MNOs and MVNOs will evolve, opening up new possibilities for businesses.

If you’re considering MNO or MVNO solutions, Telnyx’s IoT SIM card and eSIM API offer the best of both worlds. We partner with MNOs for global connectivity and combine that with the flexibility and cost-effectiveness of an MVNO. Whether you're managing a large deployment or need a more tailored approach, Telnyx has you covered..