Mobile Virtual Network Operator (MVNO) Market Overview:
Mobile virtual network operator (MVNO) market was valued at $51,857 million in 2016, and is projected to reach at $102,932 million by 2023, growing at a CAGR of 10.6% from 2017 to 2023. An MVNO is a wireless communications service provider which provides services without owning the wireless network infrastructure. The global mobile virtual network operator market involves the study of various MVNO models such as reseller, service operator, and full MVNO. The mobile virtual network operator market is widely driven by improved service capabilities, increasing opportunities for mobile operators, and administrative support benefits. However, factors such as low profit margins & reduced tariffs restrain the growth of the market.
The global MVNO market is segmented based on operational model, type, and geography. By operational model, the market is segmented into full MVNO, service operator MVNO, and reseller MVNO. Further, the types of MVNOs include media & entertainment, discount, business, cellular M2M, migrant, retail, telecom, and roaming. Geographically, the market is analyzed across North America, Europe, Asia-Pacific, and Latin America, Middle East & Africa (LAMEA).
Key Market Segmentation
Top Impacting Factors
Based in current and the future trends of the various factors impacting the global MVNO market, improved service capabilities, increased opportunities for mobile operators, and administrative support benefits have a positive influence on the market during the forecast period. In addition, positive and amalgamated growth in the wireless industry are expected to boost the MVNO market growth. However, the impact of factors such as low profit margins & reduced tariffs hampers the global MVNO market share. The key factors that affect the global Mobile Virtual Network Operator (MVNO) market have been given below:
Porters Five Forces Analysis
The degree of industry attractiveness in the mobile virtual network operator market is analyzed on the basis of the impact of five major forces on the market. Porters five forces analysis for the market includes the impact of suppliers, industry rivals, new entrants, substitute products, and buyers on the MVNO market growth.
Moderate Bargaining Power of Suppliers
High Threat of New Entrants
Low Threat of Substitutes
High Intensity of Competitive Rivalry
High Bargaining Power of Buyers
Improved Service Capabilities
With the increasing telecom spectrum from 3G to 4G, MVNOs have the capability of offering higher speed with value-added services to customers. This has resulted in enhanced service capabilities of network operators for segregating bandwidths and categorizing services based on specific needs. For instance, the international call rates have dropped considerably due to the segregation of services for utilizing bandwidth optimally. Further, the radiofrequency spectrum that is not utilizable for transferring data is used for voice that is economical for both consumers as well as the service providers.
Opportunities for Mobile Operators
MVNOs provide financial benefits to the MNOs by creating new revenue streams, higher margins, and quicker returns on investment. Further, tapping niche segments and obtaining a greater share of the total market traffic are the strategic benefits provided by the MVNOs. Similarly, some of the operational benefits include increase in overall performance by sharing business processes and network utilization. Similarly, market growth, cross-selling, churn minimization, and customer retention are the marketing benefits provided by the MVNOs.
Administrative Support Benefits
MVNOs have the ability to offer tailor-made services based on the customer needs which is advantageous to the consumers as compared to obtaining these services from MNOs. Further, MVNOs receive support from both MNOs as well as the governing bodies. The governing bodies in co-operation with MVNOs are offering communication services at optimal charges at the domestic front. Further, the MNOs rent their infrastructure for services to be provided by the MVNOs. For instance, in Europe, the government regulations authorize the network operators for supporting MVNOs to lease wireless capacity and for third-party sales of radiofrequency spectrum.
Low Profit Margins and Reduced Tariffs
There is a growing number of operators across the globe, particularly in the Europe and U.S. Most of the companies offer inexpensive mobile data and voice services. Competition that is a major growth barrier in the market has induced low profit margins & reduced tariffs among the companies.
Growth in B2B Sector
B2B sector comprises the services that are aimed at large enterprises, SMEs, and IoT offerings. This sector is highly opportunistic for the global MVNO market. An instance of such type of expansion includes Soracom an IoT-centric MVNO that has announced expansion in Singapore market and is interested to operate in other Asian markets. Similarly, other B2B expansions include large companies that offer MVNO services to their own employees. For instance, Personal Group acquired Shebang in 2015 that used its offerings for combining airtime with other features within the employee benefit packages.
- The report provides an overview of the trends, structure, drivers, challenges, and opportunities in the global Mobile Virtual Network Operator (MVNO) market.
- Porters Five Forces analysis highlights the potential of buyers & suppliers, and provides insights on the competitive structure of the market to determine the investment pockets of the market.
- Current and future trends adopted by the key market players are highlighted to determine overall competitiveness of the market.
- The quantitative analysis of the market through 2017-2023 is provided to elaborate the market potential.
Mobile Virtual Network Operator (MVNO) Market Key Segments:
By Operational Model
- Full MVNO
- Service Operator MVNO
- Reseller MVNO
- Media and Entertainment
- Cellular M2M
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Latin America
- Middle East
Key Players Profiled in the Report
- Net10 Wireless
- RedPocket Mobile
- AirVoice Wireless
- Freenet AG
- KDDI Mobile
- Polkomtel Plus
- Tesco Mobile Ltd
- UPP Wireless
- GIV Mobile