Mobile Virtual Network Operator (MVNO) Market is Projected to Remarkably at Double Digit Growth by 2027

By Ronak Bora

The global MVNO market is poised to showcase impressive growth in the coming years on account of the intensifying need to provide differentiated services at a cheaper rate. Smartphones and other smart devices have penetrated a substantial portion of the global economy, which is paving the way for the growth of the mobile virtual network operator (MVNO) market size. The ever-rising telecom needs, especially data requirements of the widening base of smartphone users has resulted in the initiation of multiple strategies by service providers. MVNOs have cropped up at the forefront of the telecom space as an apt format to address the exponential rise in data traffic.

MVNOs incur much lesser cost as compared to MNOs (Mobile Network Operators) as investment in infrastructure and maintenance is not involved. Network services are purchased from MNOs at wholesale rates and sold at lower price range.  Unlike MNOs, MVNOs are focused only on niche customer segments, which allow them to provide specialized as well as differentiated services. A host of other factors are instrumental in driving the growth of the MVNO market share, which include towering consumer demand for low-cost services, remarkable development in telecom infrastructure across the globe, and favorable regulatory landscape.

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How is cost a key determinant for the MVNO market growth?

Unlike MNOs, MVNOs are free from investment and maintenance of infrastructure, which allow them to focus on core business activities. MVNOs primarily arose in the telecom landscape to provide services and bundles at wholesale rates, which helped them attract customers, especially the price-sensitive segment. These providers offer loyalty programs and financial services along with regular services provided by MNOS and are continually striving for delivering best-in-class differentiated services, which fulfill changing mobility requirements of customers.

Moreover, massive amounts of investments are pouring into the MVNO arena by various established players such as Dataxoom, BT Mobile, Red Pocket Mobile, Tracfone Wireless, Exetel, GiffGaff, and VoiceWorks GmbH. The opportunity to enter the market without investment in building and maintenance of infrastructure is acting as an appealing factor, which is further propelling MVNO market trends.

How is the emergence of IoT likely to influence the market?

IoT devices are mushrooming and it is estimated that by 2020 the number of IoT devices in use will reach about 20.5 Bn. High-speed data connectivity is a prerequisite for the utilization IoT devices to their maximum potential. MVNOs are increasingly capitalizing on the opportunity provided by IoT devices. MVNOs provide high degree of agility and possess advanced capabilities, due to which they have gained significance in various areas. Smart cities application and connected cars are among the most prominent application area of MVNOs.

Why is the light MVNO market demand soaring high?

The light MVNO business model requires much lower investment and has provided an impetus for the entry of various low-budget players to the industry. Small-scale players are deploying the light MVNO model to customize offerings for their customers in niche segments. Light mobile virtual network operator (MVNO) market is estimated to witness a CAGR of 12.5% over 2018-2024.

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What are the key trends fueling APAC MVNO industry outlook?

The APAC MVNO market share valued at USD 8 billion in 2017 is advancing at a noteworthy pace. The unique business model of MVNOs allow them to offer customized services at affordable rates. The region is amidst economic upturn and is a price-sensitive one, due to which MVNOs have fared well in the region.  These companies are rendering specialized services at lucrative rates to the broadening base of smartphones users, which has helped the business model gain large-scale commercialization. In addition, the region has demonstrated striking advancements in terms of telecom infrastructure upgradation. This coupled with surging adoption of 3G and 4G services is creating a supportive dais for the growth of the MVNO industry. Moreover, the governments in the region are aiding the market growth by enacting favorable policies and devising a supporting regulatory framework. Such policies are encouraging the entry of new players to the market, which is anticipated to propel the industry growth in the coming years.

Table of Contents (ToC) of the report:

Chapter 1   Methodology & Scope

1.1    Scope & definitions

1.2    Methodology & forecast parameters

1.3    Impact of COVID-19

1.3.1    North America

1.3.2    Europe

1.3.3    Asia Pacific

1.3.4    Latin America

1.3.5    MEA

1.4    Data sources

1.4.1    Secondary

1.4.2    Primary

Chapter 2   Executive Summary

2.1    MVNO market 360º synopsis, 2017 - 2027

2.1.1    Business trends

2.1.2    Regional trends

2.1.3    Business model trends

2.1.4    Subscriber trends

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About Author


Ronak Bora

A graduate in Electronics Engineering, Ronak writes for Technology Magazine and carries a rich experience in digital marketing, exploring how the online world works from a technical and marketing perspective. His other areas of interest include reading, music, and sport....

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