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Wireless service providers are also called wireless carriers, mobile phone operators, or cellular companies. Simply put, their main function is to provide mobile phone services to subscribers.

Wireless service providers need to obtain a license to be able to operate in a certain country. The license is used to acquire a radio spectrum. The radio spectrum varies depending on the types of services that the provider intends to offer. Usually, radio spectrum licenses can be bought through an auction.

An emerging type of wireless service providers is called mobile virtual network operators (MVNO). They operate very much like regular service providers do. The main difference is that MVNO do not have a network of their own. They only lease a network from an existing wireless service provider. The first MVNO was launched in United Kingdom in 1999.

The terms and conditions of the MVNOs with the regular wireless service provider vary depending on the contract they have agreed upon. But in general, MVNOs still reserve the right to modify their own tariff structures. While they may not own their own wireless infrastructure, some MVNOs have a home location that enables them to use the services of several cellular companies.

Traditional wireless service providers agree to partner with MVNOs for three major reasons. First, MVNOs may help them reach a larger market. Not all traditional cell companies are capable of reaching out to all segments of the market. Through MVNOs, they can expand their market. Second, MVNOs may also help cell companies to better utilize their networks by generating larger economies. This way, they can better promote new services such as 3G. Lastly, MVNOs can be helpful in reaching customers with highly-specialized needs.

Today, there are about 200 MVNOs worldwide. These can be found in different countries such as the Netherlands, Finland, Australia, and Belgium. In other countries like France and Austria, MVNOs are also beginning to emerge. Those countries that already have several MVNOs can expect lower growth in terms of new MVNOs because the market in such places has already become highly saturated.

# posted by Medical Information : 3:19 AM