An MVNO does not own spectrum or base stations. It buys wholesale access from one or more mobile operators and adds its own SIMs, billing, customer support and, for IoT, management tools. IoT-focused MVNOs are common because they can offer a single SIM or eSIM profile that roams across many operators and countries, a connectivity management platform with APIs, and tariffs designed for devices that send a few kilobytes a month rather than for phones.
For a device maker, an MVNO simplifies global deployment and reduces dependence on a single carrier. The trade-offs are that the MVNO depends on its host networks for coverage and for support of NB-IoT and LTE-M, that roaming SIMs are restricted in some countries, and that pricing can change when wholesale agreements do. Contract terms on these points deserve close reading.
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