Aeris Blog

The Problem with MVNOs, Part 1: Costs

July 09, 2014

iStock_000001925982_MediumAeris Communications is sometimes confused with being a Mobile Virtual Network Operator (MVNO). Although Aeris and MNVOs offer machine-to-machine  (M2M) cellular network services, there are real differences between the two. Knowing the differences can significantly improve your chances of reaching a successful M2M deployment.

A key differentiator between Aeris and a MVNO is costs.

A MVNO is a wireless communications services provider that does not own the radio spectrum or wireless network infrastructure over which the MVNO provides services to its customers. An MVNO enters into a business agreement with a mobile network operator to obtain bulk access to network transport services at wholesale rates, and then sets retail prices independently. MVNOs depend on carriers not only for connectivity but also the tools for managing M2M applications. MVNOs rely on core billing services from their underlying carrier.

Aeris sells solutions, not just connectivity. Today, Aeris Communications owns and operates the largest North American cellular network built from the ground up exclusively for machines, and we are expanding globally. We do not support any consumer traffic or handsets. Our solutions include both the network services and the tools necessary for the most demanding and mission-critical M2M communications. Because Aeris operates the underlying network infrastructure, it is able to make rapid modifications to meet its customers’ ever-changing requirements.

Aeris works in close partnership with its customers to understand and examine each one’s unique business requirements and match their cellular costs according to their business model. With Aeris, customers aren’t forced into a traditional carrier “one size fits all” rate plan.

 M2M application supply and distribution chains are very different than those for consumer handsets. For example, M2M customers require connectivity for testing and distribution without a recurring monthly cost. With Aeris, customers are able to test devices to ensure quality throughout their supply channels, without having to incur monthly recurring costs until the device is deployed commercially. At that point, the device automatically switches to a billable status that is customized to the customer’s particular business model. This process is automated, based on usage triggers that are customizable to each customer’s business requirements. 

Aeris is unmatched in its ability to provide customized billing, multiple rate plans, and models that match the business requirements of customers -- and fully support them in-house. This flexibility has allowed many of our smaller customers to start or stay in business and it gives all of our customers the power to fundamentally change their business models.

These factors enable Aeris to offer its customers the industry’s lowest Total Cost of Ownership

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