The global mobile virtual network operator (MVNO) market size is estimated to be valued at USD 112.0 billion by 2025. The growing number of smartphone users globally have resulted in a surge in the demand for network services, especially for low cost data and voice calling services. This has presented the mobile virtual network operators around the world with tremendous revenue generation opportunities. The rapid increase ind the number of MVNOs to capitalize on these opportunities are responsible for the boom in the mobile virtual network operator market.
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The major factor driving the growth of the MVNO market is the increasing number of network subscribers resulting from the growing penetration of mobile devices. A cell phone user subscribed to a network operator has the option of availing the services of multiple MVNOs on the same phone. The MVNOs and the MNOs are focusing on specific markets and niches and coming up with customized plans that would expand their customer reach and create brand awareness. This consumer segment targeting allows the MVNOs to come with plans that makes it stand out from its competitors as well as reduces their cost of advertising.
On the basis of operational model, full MVNO accounted for the largest market share in 2017. A full MVNO has total control over the retail pricing and also over the client with its own International Mobile Subscriber Identities (IMSIs). It operates like an MNO in all ways except for the ownership of radio access networks. It offers network switching, content and service applications, billing and customer care, branding, marketing and sales services in the MVNO value chain. Thus, the extended suite of services offered by a full MVNO results in a high revenue generation as compared to the other operational models.
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Geographically, Europe accounted for a major market share in the MVNO market owing to the presence of a large number of MVNOs in this region. There have been a series of new product launches, mergers, and acquisitions in especially in Western Europe. In December 2017 China Mobile International, a subsidiary of China Mobile – the world’s largest mobile operator by subscribers–launched an MVNO in the UK under the CMLink brand name. The rapid growth of MVNO in the Europe is due to the increasing initiatives by telecom regulators to reduce tariff rates by increasing competition. Along with this, maximizing the use of radio frequency and spectrum capacity of the MNOs is another factor leading to growth of MVNOs in this region.
The competitive landscape of global mobile virtual network operator market is highly fragmented owing to the presence of several local players. Companies including Boost Mobile, Drillisch Mobile, FRiENDi Mobile, Globecomm Systems, Inc., KDDI Mobile, Lebara Group, Lycamobile, PosteMobile, Tesco Mobile Ltd, TracFone Wireless Inc., and Virgin Mobile USA amongst others.
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Key Segments of the Global Mobile Virtual Network Operator (MVNO) Market
Operation Model Overview, 2014 – 2025 (USD billion)
Subscriber Overview, 2014 – 2025 (USD billion)
Application Overview, 2014 – 2025 (USD billion)
Cellular M2M (Machine to Machine)
Media & Entertainment
Services Overview, 2014 – 2025 (USD billion)
Regional Overview, 2014 – 2025 (USD billion)
Rest of Europe
Rest of Asia-Pacific
Rest of Latin America
Middle East & Africa
Rest of Middle East & Africa
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