What does virtual operator mean?

Virtual operators refer to new telecom operators that rely on leasing communication resources from traditional telecom operators to carry out telecom services. After renting basic communication resources, virtual operators can deeply process communication services based on their main business advantages, and finally provide communication services to consumers under their own brands.

Virtual Network Operator refers to a new type of telecom operator that relies on leasing communication resources from traditional telecom operators to carry out telecom services.

Virtual operators generally have one or more capabilities (such as technical capabilities, equipment supply capabilities, market capabilities, etc.). After renting basic communication resources, they provide in-depth communication services based on their main business advantages. processing, and finally provide communication services to consumers with its own brand and self-built customer service system.

Traditional telecom operators allocate commissions based on a certain amount of revenue, and hand over part of their business to virtual operators for development, thereby easing the pressure on marketing costs while gaining revenue, and at the same time saving more resources to develop their own core businesses. .

Compared with mobile network operators (MNO), virtual network operators (MVNOs) have the following characteristics:

1. Avoiding large-scale capital precipitation, the difference between fixed assets and total assets The scale is also greatly reduced as a result. The infrastructure investment of virtual network operators is much lower, and there is no need to invest in expensive radio facilities (such as base station systems, etc.).

2. Under normal circumstances, the marginal cost (Net Margins) of virtual network operators is lower than that of mobile network operators, and the return on investment may exceed that of network operators. It can be seen that the main cost of mobile virtual network operators comes from network capacity rental fees, and the latter is closely related to the number of end users.

3. Because high network capacity rental fees need to be paid to network operators, the variable costs of virtual network operators are much higher than that of network operators, and they must develop on a large scale as soon as possible in the early stages of operation. user.

4. Mobile virtual network operators do not need to pay for the maintenance of radio facilities, which reduces the share of fixed costs in the entire operation and can travel lightly.

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