The Global Mobile Virtual Network Operator (MVNO) Market Size Reached US$ 73.1 Billion In 2022. Looking Forward, The Market Expects To Reach US$ 129.02 Billion By 2030, Exhibiting A Growth Rate (CAGR) Of 7.36% During 2023-2030.
A mobile virtual network operator is a GSM phenomenon in which operators do not own licensed spectrum, but lease it from mobile network providers and resell it to consumers using software. Increasing penetration of mobile network subscribers across the globe is driving the growth of the market for virtual mobile network operators. They work in different ways, such as as a full MVNO, a reseller, a service operator, and so on. Mobile virtual network operators focus on certain parts of the market and make plans that fit those parts. Compared to mobile network operators (MNOs), they offer lower prices and more benefits because they don't need a large staff or a lot of money to build and run networks.
This market has a lot of different players, is very competitive, and is changing quickly. It has to deal with new technology, changing customer needs, and a lot of new products and services coming out all the time. When a company's main business works with telecom services, it opens up new business opportunities, lowers communication costs, and makes sure customers stick with the company. When a parent operator creates an MVNO, it can reach more customers, grow its business, rent out its infrastructure to make more money, and promote new services.
Virtualization and remote working are driving up the need for data plans, which will help the market grow. The bad effects of coronavirus had an effect on digital spending in businesses all over the world. IDC says that the total amount spent on technology in 2022 was about USD 5.47 trillion. But IDC also says that COVID-19 will cause IT spending around the world to drop by 2.7%.
IDC also says that global spending on technology will go down by 1.6% and reach about USD 4.1 trillion. Telecom spending, on the other hand, is likely to be affected only slightly. Also, spending on technology for Mobile Network Operators (MNOs) and Mobile Virtual Network Operators (MVNOs) is expected to rise soon.
In the same way, as businesses move toward remote work, cloud-based solutions and more virtual conventions help employees work together and stay in touch. During the COVID-19 pandemic, these factors increase the demand for the network brand and cellular plans. This lets organizations support remote work and manage data in a secure way.
- Market Consolidation to be a Key Trend Prevailing in the Local Market
Market consolidation is expected to be a major trend that happens in three main ways: rebranding of sub-brands, strategic mergers and acquisitions to get customers, and leaving the market (with reabsorption of customers by MNOs or others).
Some MNOs are expected to change their branding strategies and re-use their sub-brands instead of making new ones. Some mobile network operators have gotten more customers because the hosted virtual network operator went out of business. They did this by buying the customers of the hosted virtual network operator.
Mobile Virtual Network Operators that want to grow can also do things like merge or buy other companies. Fixed-line phone companies and cable companies are buying these service providers to add to the services they already offer. Established MVNOs are buying competitors to grow their customer base and change the way they do business. For example, in April 2022, Altice France signed a contract to buy Coriolis Telecom Inc., a French company that offers prepaid and value mobile services. Coriolis Telecom was bought for USD 298 million plus USD 117 million more. It also handles subscriptions from 30,000 businesses and 500,000 consumers in the region.
- 5G and Quick Adoption of Latest Wireless Technologies to Surge Demand for New Generation of MVNOs
5G is expected to lead to a new era of connectivity, a rise in efficiency, and the creation of new services in many different industries. Mobile network operators are still in a strong position when it comes to deploying 5G and testing new technologies. According to the GSMA Intelligence Mobile Economy Report 2022, there will be 400 million new 5G subscribers by 2025. Most of these customers will come from Asia Pacific and Sub-Saharan Africa, where network operators are investing heavily and there are many different 5G smartphones at different prices. The report also says that at least 200 million people will connect to the internet for the first time in 2021. This includes 53% of internet users, 41% of covered users, and 6% of people who don't have internet access.
The above factor shows how 5G is becoming more popular in the MVNO industry and how people want cheaper mobile devices that can work with 5G. The Mobile Virtual Network Operator market is likely to grow in the long run because of these things.
- Increasing Penetration of Mobile Devices
The growth rate of the market is likely to be driven by how many people use mobile devices. GSMA thought that by the end of 2021, about 67% of the world's population, or 5.3 billion people, would have signed up for mobile services. Most people now have a cell phone in markets that are growing, which suggests that growth will come from younger people who are getting their first cell phone plans. Most of the new mobile users will come from Sub-Saharan Africa and the Asia-Pacific region. This will bring the total number of subscribers to 5.7 billion, which is about 70% of the world's population.
- Increasing Technological Advancements
During the next few years, the mobile virtual network operators market is expected to grow because of new technologies like M2M and the cloud. Mobile virtual network operators are expected to make it easier and cheaper for people to move around in industries like entertainment, lifestyle, and productivity, which is expected to increase revenue. Mobile virtual network operator (MVNO) also has a lot to offer by giving their customers roaming services while they are traveling. For example, Lyca mobile gives its users cheap rates for calling other countries.
- Issues Associated with Mobile Virtual Network Operator (MVNO) Market
In developing and underdeveloped economies, the lack of technological know-how and skilled workers will slow the growth of the market. Also, the growth rate of the market will be slowed by poor service quality, shrinking profit margins, and putting less important things first. Also, the growth rate of the market will be slowed by weak infrastructure and MNOs that aren't ready to do business in backward economies.
This mobile virtual network operator (MVNO) market report gives details about new developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, pr For more information on the mobile virtual network operator (MVNO) market, contact Data Bridge Market Research for an Analyst Brief. Our team will help you make an informed market decision so that the market can grow.
- Increasing Competition among MNOs and MVNOs to Challenge the Market Growth
The main problem that the MVNO has is that they don't have any wireless infrastructure because they don't own any spectrum allocation. Also, since these wireless providers focus on niche markets, they must make the best use of their investments in network infrastructure and management to get the most money back and cut costs. So, the virtual network operators should use the MNO's wireless infrastructure to rent out access to data and voice services and provide services to customers. Mobile Virtual Network Operator can't create new services because they have to depend on the network provider. It makes the MNOs more of a threat to the traditional market segments.
Customer retention is getting harder for these wireless providers because customers' needs are changing quickly and they want more and better services at lower prices. For example, retail customers who are interested in M2M services want to pay less for enhanced services like tracking the location and mining data. Customers in the discount segment are mostly interested in data services, but they often need real-time apps and high-quality voice. If customers' changing needs aren't met, they are likely to switch to a different service provider.
So, the above factors suggest that long-term contracts with MNOs for networking infrastructure and dependency are likely to slow the growth of the market.
The opportunities present in the Global Mobile Virtual Network Operator market for players include accessibility to the already existing customer base, the capability to offer enhanced value proposition, and the prospect of profitable partnerships with existing businesses. The companies can offer differentiated value proposition at low prices and expand its customer base and geographical reach. The four business models of the MVNO are Branded Reseller, Light MVNO, Full MVNO, and Network enablers.
The big players in the market offer wireless services at prices that are competitive around the world. This will create a lot of growth opportunities for the market in the coming years. For example, in July 2022, Boost Mobile launched a service called "Connected Car." This is a turnkey solution with flexible costs for mobile internet. Boost mobile makes it easy for anyone to get Wi-Fi in their car. You can connect several computers, tablets, and phones to a consumer car and take them with you everywhere. Also, they can now stream their favorite movies and TV shows, surf the web, and listen to their favorite songs and podcasts without using up their cell phone's data plan on long road trips. Users of the Connected Car plan can use 5GB of 4G LTE data and a remote Wi-Fi hotspot on their phones.
- In January 2023 - T-Mobile teamed up with Nextbase, a company that makes smart dash cams for cars. The partnership made it possible for Nextbase to release IQ dash cams that could connect to the network and send notifications, updates, and real-time video over the air.
- In December 2022 - Charter said it would create hybrid fiber/coax (HFC) plans for the network at a cost of $100 per neighborhood. The company wants to improve its multi-gig plans and build a mobile spectrum network. It also wants to improve its Wi-Fi network, the way it uses CBRS spectrum, and its relationship with Verizon Wireless as an MVNO.
- In December 2022 - Grover teamed up with Gigs, a telecom as a service platform for data subscriptions, to launch their mobile virtual network operating services. The company also offers eSIM services in the United States and has recently started doing business in Europe.
- In January 2022 - World Health Energy Holdings (WHEN) Group announced that it was buying CrossMobile, a licensed Mobile Virtual Network Operator in Poland. Due to the healthy growth of the market in Europe, this acquisition led to the deployment of network infrastructure, the growth of their cyber-security solutions business, and a large customer base, all of which helped their businesses.
- In March 2021 - DISH Network bought Republic Wireless, which added 200,000 wireless users to its customer base. With this purchase, they grew their telecom business and made it easier to roll out 5G.
Top market players include
AirVoice Wireless has been the leader in prepaid wireless services across the country for more than 22 years by giving customers reliable connections at low prices. Today, with a strong GSM network and a team of hardworking people, AirVoice Wireless serves a large number of customers and adds more every day. With agents and customers in over 40 states, Puerto Rico, and the US Virgin Islands, the company has a big share of the prepaid wireless market.
Amdocs Ltd. is a holding company that helps the communications, entertainment, and media industries with software and service solutions. It focuses on making, implementing, and managing software and services for business support systems, operational support systems, service-driven networks and other network solutions, entertainment offerings, and digital solutions.
Asahi Net, Inc. is a Japanese company whose main business is to connect people to the Internet and offer other services related to the Internet. The Internet connection service provides a communication environment that lets sites and networks connect, as well as different ways for members to connect to the Internet.
Wireless for the People. That's what Boost Mobile is. With nationwide coverage that reaches 99% of Americans and constant upgrades the network, providing value to everyday people and diverse communities that our competitors tend to overlook.
FreedomPop is a communications company that gives people all over the world free wireless internet and free cell phone service.
With more than 600,000 customers, FRiENDi mobile is the third largest mobile service provider in Oman. The promise of FRiENDi is to give customers a great pre-paid mobile service for people who have a piece of their heart abroad.
Kajeet offers optimized IoT connectivity, software, and hardware solutions that allow students, businesses, state and local governments, and IoT solution providers to connect to the Internet in a safe, reliable, and controlled way. Kajeet is the only company that offers a scalable IoT management platform for managed IoT connectivity services.
KDDI Corp. (KDDI) is a company that offers integrated phone services. Under the au brand, the company offers mobile and fixed-line broadband services, as well as mobile and fixed-line phone services. It offers FTTH services, CATV services, and Information and Communication Technology (ICT) solutions as part of its fixed line communication services.
Lyca Mobile was made so that everyone could call each other from anywhere in the world for a low price. Lyca is the biggest international mobile virtual network operator (MVNO) in the world, offering great deals on data, calls, and minutes to 23 countries around the world.
TracFone Wireless is a company that offers prepaid phone services that fit the client's budget and way of life. There are no contracts.
Virgin Media Business Limited is a company that specializes in telecommunications services for businesses. The company was started in 2006 and is a subsidiary of Virgin Media. Its main office is in Reading, United Kingdom.
The Global Mobile Virtual Operator Market is segmented on the basis of type, operational model, end-user, service type and regions.
By Type Outlook:
The market is divided into M2M, business, discount, roaming, media, migrant, retail, telecom, and other types based on what they are used for. In 2022, about 24.0% of the market was made up of the discount segment. The M2M segment of the MVNO market is expected to grow quickly because more and more machines, from cars to vending machines, are getting cellular connections.
Most of the growth of MVNOs in the M2M market is due to improvements in 3G M2M technology, efforts by MNOs to add more services to their list, and the expansion of mobile network coverage. There has been a big increase in the number of MNOs working together with M2M application service providers. This is likely to increase demand for the deployment of mobile network elements in M2M applications during the forecast period.
MNOs offer different service plans and products for different markets with fewer users. This makes operational and business support systems more expensive and less effective. Costs are pretty high when it comes to keeping customers and getting new ones, especially for fixed-term contracts. The MVNOs can help with cost issues, better use of resources, and better Quality of Service (QoS), all of which would help the market grow. Also, customers are likely to be most interested in low-cost access to voice and data services.
By Operational Model Outlook:
The market is split into full MVNO, reseller MVNO, and services operator MVNO based on how it works. In 2022, about 60.0% of the market was made up of the full MVNO segment. In 2022, the full MVNO segment made the most money on the market. Implementing a full MVNO network infrastructure requires only a small amount of capital and gives customers full call control, which lets them call other countries at very low rates. MNOs made strategic decisions that led to the rise of MVNOs by lowering the barriers to entry and making it easier for new companies to join the market.
MNOs have their own mobile licenses, infrastructure, and customer relationships with their end users. They are also able to handle network routing. Most of the time, they have roaming deals with companies in other countries. But MNOs are teaming up with MVNOs and going after niche markets in order to grow their existing customer bases and businesses.
MVNOs try to offer different services than MNOs so they don't have to compete directly with them. They want to make the most of opportunities related to roaming services by giving tourists and young people special services. MVNOs help MNOs make more money by giving them wholesale deals, getting more people to use their networks, and creating their own MVNOs by launching sub-brands.
- Full MVNO
- Reseller MVNO
- Service Operator MVNO
The mobile virtual network operator (MVNO) market is split into consumer and business segments based on how the service is used. In 2022, about 77.0% of the market was made up of the consumer segment. In 2019, the consumer segment was the most important part of the market, and this is expected to stay true during the forecast period. As network speeds get faster and more advanced devices are used, data applications like web browsing and video streaming can become more popular.
More money is being spent to improve network coverage and make more connections to mobile broadband (MBB). The MVNO model has advantages like saving time and money, which are likely to draw in more customers and speed up the growth of the consumer segment.
Managing connected living, personal data, and the rise of e-commerce is also expected to provide key players in the market with a lot of growth opportunities and give consumers more benefits. Intelligent networks that connect a wide range of devices help businesses be more productive. The relationship between MNOs and MVNOs is mostly based on the reputation of the brand, the distribution network, marketing strategies, and access to segments. The MVNO model is changing from focusing on voice calls to focusing more on data. MVNOs all over the world are looking for smartphones that can use data to grow their businesses.
By Service Type:
Based on the type of service, the market is split into postpaid and prepaid. It is expected that postpaid data plans will take up most of the Mobile Virtual Network Operator market and keep a healthy CAGR during the forecast period.
Prepaid plans don't have contracts and require users to pay for the service before it starts. Postpaid plans require users to sign a contract and pay for the services they use over the course of a month. Postpaid plans have features like less data throttling and lowering the priority of the network. To make the plans more appealing to customers, they come with extras like OTT subscriptions and coupons. Users can cancel their subscriptions to prepaid plans at any time and don't have to sign a contract.
Nielsens found that most smartphone users in developed countries like the U.K., U.S., and Australia choose contract-based postpaid plans over prepaid services. Prepaid cellular services are only used by 30% of people with feature phones and 15% of people with smartphones in the United States. So, the demand for postpaid plans goes up when they come with good contracts, network-embedded phones, wireless data cards, and pay-per-use pricing models.
In 2019, Europe ruled the market for mobile virtual network operators. This growth can be attributed to good regulatory frameworks, which are expected to play a big role in the growth of mobile virtual network operators. During the time frame of the forecast, countries like the UK, Germany, and the Netherlands are expected to help regional growth. During the time frame of the forecast, data services are likely to be important to the growth of the region.
During the forecast period, Asia Pacific and Middle East and Africa are expected to grow a lot. The rapid growth of the telecom services market in Asia-Pacific is a big reason why the mobile virtual network operator market is growing there. India, Vietnam, Myanmar, and China, which are all developing economies in the region, are working to improve and expand their communication services. During the forecast period, Southeast Asian countries like Thailand, Singapore, and the Philippines are also expected to make a big difference in the growth of the regional market.
Japan, Malaysia, and Australia, which all have advanced cellular networks, are likely to play a big role in growing the market in the Asia-Pacific region. In Japan, for example, MVNOs offer services like online gaming, M2M, surveillance, and remote management of vending machines. It also offers voice control services for security applications and patient monitoring in the healthcare industry.
- North America
- Rest of North America
- Nordic Countries
- Benelux Union
- The Netherlands
- Rest of Europe
- South Korea
- Southeast Asia
- Rest of Southeast Asia
- Rest of Asia-Pacific
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Rest of Latin America
Scope of Report:
|Value (USD Billion)
|CAGR of 7.36% from 2023 to 2030
By Operational Model
- Full MVNO
- Reseller MVNO
- Service Operator MVNO
By Service Type
- AirVoice Wireless
- Asahi Net Inc.
- Boost Mobile
- FRIENDi Mobile
- Kajeet Inc.
- KDDI Corporation
- Tracfone Wireless Inc
- Virgin Media Business
| Regional Scope
- North America
- The Middle East & Africa
- Latin America
|Reasons to Purchase this Report and Customization Scope
- 6-month post-sale analyst assistance.
- 10% Free Customization and 15 Company Profiles in addition to the ones specified
- In the Global Mobile Virtual Network Operators (MVNO) Market Report, a whole section is devoted to market dynamics, which include factors that affect the market, drivers of the market, challenges, opportunities, and trends.
- Another large part of the research study is devoted to a regional analysis of the Global Mobile Virtual Network Operators (MVNO) market. This is where important regions and countries are analyzed for their growth potential, consumption, market share, and other important factors that show how their markets are growing.
- Players can use the competitive analysis in the report to come up with new strategies or improve the ones they already have. This will help them overcome market challenges and increase their share of the Global Mobile Virtual Network Operators (MVNO) market.