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Mobile Virtual Network Operators

A Mobile Virtual Network Operator (MVNO) is a service provider that uses the spectrum and radio access network (RAN) of another wireless carrier and, in some cases, other facilities and/or services, to deliver mobile wireless services.

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About MVNOs

While MVNOs vary in structure and scope, they all require access to the RAN of an established wireless carrier. Generally, MVNOs do not have spectrum or network infrastructure like towers, but may operate other key components, such as:

These providers rely on commercial and/or mandated arrangements with host carriers to access the network elements necessary to deliver mobile services in Canada. The extent of an MVNO’s independence and infrastructure ownership depends on its specific business model. Some MVNOs supply most of the components of a network, apart from the RAN, while others only provide marketing services and rely on arrangements with an established wireless carrier to provide the rest of the service.

Any type of MVNO reseller can offer service in Canada once they partner with a host carrier and register with the appropriate CRTC list.

While there are many different MVNO business models, the CRTC has specific policies in place for two types of MVNO. These policies have distinct purposes and different eligibility and registration requirements.

  1. Facilities-based MVNO
  2. Full MVNO
    There are two stages to becoming a registered full MVNO:
    • Proposed Full MVNO
    • Full MVNO

Facilities-based MVNO

A facilities-based MVNO is a regional wireless carrier that primarily uses its own telecommunications facilities and networks but uses a host carrier’s RAN to acquire customers in areas where it has not yet deployed a network.

To become a facilities-based MVNO

The CRTC determined in Telecom Regulatory Policy 2021-130 that a facilities-based MVNO model would best help regional wireless carriers grow while encouraging them to continue to invest in networks and infrastructure. For that reason, the CRTC mandated wholesale MVNO access for a seven-year period. This allows regional carriers to use the incumbents’ wireless networks, on a temporary basis, to serve new customers while they build out their own networks.

Telecom Decision 2022-288 established that to be eligible for the facilities-based wholesale MVNO service, regional wireless carriers must meet specific requirements. Namely, they:

Wireless carriers subject to the regulatory mandate

The CRTC requires the national wireless carriers (Bell Mobility Inc., Rogers Communications Canada Inc., and TELUS Communications Inc.) and Saskatchewan Telecommunications (SaskTel) to provide eligible regional wireless carriers with wholesale MVNO access to their networks.

Wholesale agreements and rates

The national wireless carriers and SaskTel must grant access to eligible facilities-based MVNOs according to their wholesale MVNO access tariffs. Wholesale rates for the service are negotiated between the parties. The parties may apply to the CRTC for final offer arbitration if they are unable to come to an agreement.

Facilities-based MVNOs are permitted to resell MVNO access to other types of MVNOs.

Full MVNO

A full MVNO is a service provider that supplies its own facilities, systems, and equipment (including the core network, billing systems, customer care, devices, etc.), except the RAN itself. It enters into a commercial agreement with a host carrier for RAN access.

Registering as a full MVNO provides access to mobile network codes (MNCs), pursuant to Telecom Regulatory Policy 2015-177. A unique MNC enables a full MVNO to acquire its own subscriber identify module (SIM) cards, make arrangements with multiple wireless carriers, and negotiate its own wholesale roaming arrangements (for example, with international wireless carriers).

To become a Full MVNO

Telecom Decision 2015-496 established a two-stage process for registering as a full MVNO.

Stage 1: Proposed Full MVNO status

A proposed full MVNO is a wireless service provider that notifies the CRTC, in writing, of its intention to become a full MVNO within 12 months. A proposed full MVNO is allowed to submit a mobile network code (MNC) application to the Canadian Numbering Administrator (CNA). An MNC will only be assigned when the entity becomes a full MVNO.

Stage 2: Full MVNO status

To become a full MVNO, a proposed full MVNO has 12 months to meet specific requirements:

Upon completing these steps, the entity will then be registered as a full MVNO and based on this registration the CNA will assign the requested MNC to the full MVNO.

For clarity, other MVNOs, such as branded resellers, can operate in Canada without registering as a full MVNO, provided they can find a willing host carrier. The key difference between a full MVNO and other MVNOs is the ability of full MVNOs to acquire their own MNCs.

Wholesale agreements and rates

Unlike facilities-based MVNOs, there is no regulatory requirement or mandate for a host carrier to provide full MVNOs with access to their networks. Such arrangements, including rates, are subject to commercial negotiations between willing partners.

MVNO eligibility and obligations comparison

Criteria Facilities-based MVNO Full MVNO Other types of MVNO
CRTC registration Must be registered with the CRTC as a wireless carrier

Must register with the CRTC

(Stage 1: Proposed Full MVNO;

Stage 2: Full MVNO)

 Must register with the CRTC as a reseller of telecommunications services
Wholesale access Mandated access to the RANs of the national carriers (Bell, Rogers, TELUS) and SaskTel Negotiated access between willing partners. No regulatory obligation for a host carrier to provide access. Negotiated access between willing partners. No regulatory obligation for a host carrier to provide access.
Spectrum Must hold or lease a spectrum licence (Tier 4 or higher) No spectrum licence required No spectrum licence required
Technical requirements Must have a home public mobile network (RAN + core) somewhere in Canada

Must own and operate core network hardware (switches, routers) separate from all Wireless Service Providers

Must have a service profile management system for end-user devices that can access Wireless Service Provider networks in Canada

 No specific technical requirements
Mobile Network Code (MNC) Uses its own MNC Can apply for and use its own MNC Uses host carrier’s MNC

Mobile wireless spectrum licenses

The department of Innovation, Science and Economic Development Canada (ISED) is responsible for auctioning spectrum in Canada, as well as issuing spectrum licences and administrating spectrum licence fees.

Find out more about spectrum management and telecommunication in Canada.

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