Mobile Virtual Network Operator (MVNO)
Legal Counsel for MVNOs and Wireless Resellers
Launching a mobile virtual network operator (MVNO) business offers opportunity, but it also comes with complex federal and state regulatory requirements. While less restrictive than full-service carriers, MVNOs must still navigate licensing, compliance, and telecom law intricacies that can pose significant challenges without experienced legal guidance.
From securing federal authorizations to maintaining compliance with evolving state regulations, our team is here to ensure your path is clear – and that your business is protected.
Regulatory Classification
Even without owning network infrastructure, MVNOs are typically classified as Commercial Mobile Radio Service (CMRS) providers. This means they’re regulated at both the federal and state levels similarly to facilities-based carriers.
State Compliance for MVNOs
FCC Section 214 Authorization
If your MVNO plans to provide international service, FCC Section 214 authorization is required. This process typically takes a few weeks when submitted correctly.
FCC Registration (Form 499-A)
MVNOs must register with the FCC and the Universal Service Administrative Company (USAC) by submitting Form 499-A. Registration triggers inclusion in the FCC’s USF system and enables agreements with major carriers.
Ongoing requirements include annual 499-A filings and quarterly 499-Q revenue reports. These filings impact contributions to:
- Universal Service Fund (USF)
- North American Numbering Plan (NANP)
- Local Number Portability (LNP)
- Telecommunications Relay Service (TRS)
USF Contributions
MVNOs can leverage a “safe harbor” rule, contributing based on 64.9% of wireless revenues for interstate calls, unless opting to calculate actual usage.
CALEA Compliance
Under the Communications Assistance for Law Enforcement Act (CALEA), MVNOs must support lawful electronic surveillance with minimal disruption to customer privacy.
CPNI Rules
MVNOs are also required to safeguard Customer Proprietary Network Information (CPNI), including usage data and personally identifiable information. Strong internal procedures and user opt-in tracking are critical.
State-Level Requirements
Registration
Although states can’t regulate wireless rates or market entry, many require MVNOs to register before offering service. Registration details and complexity vary by state — some, like California, require only basic corporate information, while others request operational details and coverage areas.
Ongoing State Compliance
MVNOs may also be subject to:
- State USF contributions
- 911/E-911 fees
- Local telecom taxes
- Public Utility Commission (PUC) reporting
- Other telecom-specific surcharges
Failure to comply may result in fines, penalties, or service restrictions. Proactive legal oversight is essential to maintain compliance and avoid enforcement actions.