Agreement with Operator
Agreement with Operator: What You Need to Know
Agreement with operator (AWO) is a term that refers to the contractual relationship between a company or an individual and a telecommunication operator. It is also referred to as a mobile virtual network operator (MVNO) agreement, which legally allows an MVNO to use the infrastructure and network of a mobile network operator (MNO) to provide mobile services to their customers.
However, before we delve deeper, it is important to note that the telecommunications industry is highly regulated, and operators are required to obtain licenses and meet certain conditions before they can provide services. Therefore, an AWO is subject to regulatory approvals and compliance with local laws and regulations.
Why Do Companies Opt for AWO?
Companies opt for AWO as a way of providing mobile services without the need for large investments in infrastructure, such as building cellular towers, laying fiber optic cables, and purchasing spectrum licenses. Instead, they can leverage the existing infrastructure and network of an MNO to provide mobile services.
In addition, AWOs can offer more affordable mobile services since they do not have to bear the cost of infrastructure and network maintenance. This makes it an attractive option for companies that want to offer competitive pricing and capture a larger market share.
What are the Key Elements of an AWO?
An AWO typically includes the following key elements:
1. Service Level Agreements (SLAs): These define the level of service required by the MVNO, such as network availability, capacity, and response time.
2. Wholesale Rates: The cost of using the MNO`s network and infrastructure is determined by the wholesale rates.
3. Billing and Settlement: The AWO outlines the billing and settlement process between the MVNO and MNO, such as frequency of billing, payment terms, and dispute resolution.
4. Marketing and Branding: The MVNO has the freedom to market and brand their mobile services using their own brand name and logo.
5. Access to Network Elements: The MNO provides the MVNO with access to the necessary network elements, such as base stations and switches, needed to provide mobile services.
6. Technical Support and Infrastructure: The MNO is responsible for providing technical support and infrastructure to the MVNO.
Agreement with operator is an important contractual relationship that enables companies to provide mobile services without the need for large investments in infrastructure. It provides an opportunity for companies to offer affordable mobile services and capture a larger market share. However, it is important to ensure compliance with local laws and regulations and to negotiate favorable terms in the AWO.