Virtual Network Operator
Encyclopedia
A Virtual Network Operator (VNO) is a provider of management services and a reseller of network
services from other telecommunications suppliers that does not own the telecommunication infrastructure. These network providers are categorized as virtual because they provide network services to customers without owning the underlying network. A VNO typically leases bandwidth at the wholesale rates from various telecom providers in order to provide solutions to their customers. The VNO concept is relatively new in the North America
n market when compared to the Europe
an and Asia
n markets.
Fully virtual VNO does not have any technical facilities or technical support, instead they rely on support delivered by infrastructure providers. VNO concept has received a lot of traction in the wireless industry as cost of infrastructure is substantial. Recently pressure on margins caused many wireline operators to consider going with VNO model and cut capital expenditures as well as staffing requirements to maintain and upgrade the infrastructure.
As the global networks have become more complex, an emerging field of telecommunications "Logistics" providers has developed. These companies assist in the management of large networks which span across multiple carriers much in the same way that the Virtual Network Operators had, but this new breed of services providers have been willing to build their own networks and own infrastructure. Companies like Global Capacity, Inc. and Global Telecom & Technology now offer services directly to an increasing number of telecommunications carriers. The changing marketplace, and increasing demand for Internet connectivity, have forced most carriers to operate "Virtual" networks (purchased from other carriers) as a normal part of doing business globally.
Telecommunications network
A telecommunications network is a collection of terminals, links and nodes which connect together to enable telecommunication between users of the terminals. Networks may use circuit switching or message switching. Each terminal in the network must have a unique address so messages or connections...
services from other telecommunications suppliers that does not own the telecommunication infrastructure. These network providers are categorized as virtual because they provide network services to customers without owning the underlying network. A VNO typically leases bandwidth at the wholesale rates from various telecom providers in order to provide solutions to their customers. The VNO concept is relatively new in the North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
n market when compared to the Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
an and Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
n markets.
Fully virtual VNO does not have any technical facilities or technical support, instead they rely on support delivered by infrastructure providers. VNO concept has received a lot of traction in the wireless industry as cost of infrastructure is substantial. Recently pressure on margins caused many wireline operators to consider going with VNO model and cut capital expenditures as well as staffing requirements to maintain and upgrade the infrastructure.
As the global networks have become more complex, an emerging field of telecommunications "Logistics" providers has developed. These companies assist in the management of large networks which span across multiple carriers much in the same way that the Virtual Network Operators had, but this new breed of services providers have been willing to build their own networks and own infrastructure. Companies like Global Capacity, Inc. and Global Telecom & Technology now offer services directly to an increasing number of telecommunications carriers. The changing marketplace, and increasing demand for Internet connectivity, have forced most carriers to operate "Virtual" networks (purchased from other carriers) as a normal part of doing business globally.