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Ask the Telecom Pro – October 2019

Q: What is an MVNO?

A: A Mobile Virtual Network Operator (MVNO) provides cellular voice and data services using wireless network infrastructure owned by other carriers. MVNOs have business agreements with carriers that own wireless network infrastructure that allow them to buy and sell services to customers.

Since these MVNOs don’t have to pay maintenance and upkeep fees for infrastructure like cell towers, they typically offer enterprises a lower overall price for service compared to carriers. However, this could also create drawbacks like slower data speeds whenever main carrier subscribers are prioritized or a reduced level of service when issues arise.

MVNO Consider the benefit of reduced costs vs. reduced service levels to determine whether or not an MVNO offers the capabilities your technology management practice needs. AOTMP® University’s Mobile Service Components Course can help you break down each voice and data component to determine your best course of action going forward.

Q: Does a clawback clause benefit carriers or customer or both?

A: In financial terms, clawback typically refers to recovering funds that have been disbursed. What makes clawback unique is that, depending on the context, these clauses can benefit customers or carriers.

If the clawback clause addresses a customer’s ability to recoup overcharges that have already been paid to a carrier, then it obviously benefits the customer. However, if the clawback clause addresses a carrier’s ability to recoup credits or bonus discounts applied to a customer’s invoice, then it benefits the carrier.

MVNO These clauses are represent a small scope of the overall challenge mobile carrier contract management presents. If you’re looking to save money, improve service provider relationships, and streamline expense management processes, you need to enroll in our Telecom Contract Management Course today!