MVNO Market

The global Mobile Virtual Network Operator (MVNO) Market size was worth $84.6 billion in 2023. It is expected to grow at a compound annual growth rate (CAGR) of 6.7% to reach $116.8 billion by 2028. Many countries, such as US, China, UK, Brazil, Germany and Japan, are industrial automation and digital manufacturing leaders. The deployment of IoT devices and connectivity solutions in the automotive, electronics, and robotics industries drives the demand for MVNO services that enable seamless connectivity and data transmission.

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Mobile Virtual Network Operator (MVNO) Market Dynamics

Driver:  Profit maximization opportunity for both MNOs and MVNOs.

A promising avenue for profit maximization that can benefit both MVNOs and MNOs centers around infrastructure sharing. By strategically entering into agreements that allow MVNOs to utilize MNOs' network infrastructure, both parties can unlock substantial financial advantages. MVNOs gain access to a reliable and extensive network without the massive capital expenditure required for network deployment, significantly reducing operating costs. Simultaneously, MNOs capitalize on underutilized network capacity, effectively monetizing their infrastructure investments. This sharing model can stimulate revenue growth for MNOs while allowing MVNOs to operate competitively, offering more cost-effective services to consumers. Moreover, it fosters a collaborative ecosystem where both entities can explore additional opportunities for revenue generation, such as joint marketing efforts and the development of innovative service packages, ultimately driving profit maximization for both MVNOs and MNOs in an increasingly dynamic telecommunications landscape. On the other hand, MVNOs do not own the network infrastructure as it requires high Capital Expenditure (CAPEX). Instead, they opt for an agreement with MNOs to use MNO networks for specific geography and time periods. Hence, small and innovative companies can enter this market without having large CAPEX and OPEX.

Restraint: MNOs giving low priority to MVNO customers

The practice of mobile network operators (MNOs) giving low priority to mobile virtual network operator (MVNO) customers has been a contentious issue in the telecommunications industry. Often, MNOs operate their networks with a tiered quality of service model, where their retail customers are given higher priority over MVNO customers who rely on their infrastructure. During network congestion or high traffic, MVNO customers may experience slower data speeds or lower call quality than the MNO's subscribers. From the MNOs’ perspective, this prioritization is often justified to protect the quality of service for their direct customers who pay premium rates. However, it can be perceived as unfair treatment by MVNOs and their customers, as MVNOs are essentially reselling the MNOs’ services to their customer base. The consequences of this practice can include frustrated MVNO customers, decreased customer satisfaction, and potential churn from the MVNO's side. To address this issue and ensure fairness, regulatory bodies in some regions have imposed rules and regulations on MNOs, mandating equal treatment of MVNO and MNO customers regarding network priority during congestion. Such regulations aim to create a level playing field in the telecommunications market, ensuring that MVNOs can provide competitive and reliable services to their customers while also allowing MNOs to maintain network quality for all users. In conclusion, the prioritization of MNO customers over MVNO customers during times of network congestion has been a contentious issue, highlighting the need for regulatory oversight to ensure fair treatment and service quality for all consumers in the telecommunications industry.

Opportunity: Adoption of IoT, M2M, and BYOD by MVNOs to attract new customers

IoT refers to connected devices in the network that include everything from personal to business appliances that use Wi-Fi , ZigBee, Bluetooth, or Low Power Wide Area Network (LPWAN) radio standards for communicating with each other. IoT and M2M are changing every aspect of business as compared to any other technology. As per Statista Research Department, approximately 30 billion devices will be connected by 2020. The connected device would generate huge traffic on the network, creating opportunities for MVNOs. By understanding the ecosystem of IoT and how things or objects are connected and interact, the MVNO service provider can develop tailored services that help enterprises and customers run their IoT devices and manage network traffic smoothly. In addition, BYOD is also gaining momentum across the globe. The proliferation of smartphones and tablets across enterprises fueled the growth of the BYOD trend in businesses. BYOD helps MVNOs increase workforce productivity and overall business efficiency. However, they would face challenges while integrating their services on different devices as all the devices have different architecture and hardware. BYOD would significantly reduce the setup cost for enterprises and customers.

Challenge: Stringent government rules and regulations for MNOs and MVNOs

Regulatory bodies such as the Federal Communications Commission (FCC) of the US, General Data Protection Regulation (GDPR) of Europe, Telecom Regulatory Authority of India (TRAI) of India, National Broadcasting and Telecommunications Commission (NBTC) of Thailand, and Agência Nacional de Telecomunicações (Anatel) of Brazil have stringent rules to which all the MVNOs must adhere. The EU GDPR focuses on safeguarding the Personally Identifiable Information (PII) of citizens. The GDPR compliance solutions are used extensively in Europe and North America compared to other regions, where the adoption rate of GDPR compliance solutions and services is slow. GDPR provides companies with an opportunity to build customer trust in their business, which could improve sales and business performance. It would contribute to raising business standards, becoming central to business operations, and resonating with brand values. It would help drive consistent practice across borders, creating a more secure environment for transferring data, which, in turn, would increase opportunities for doing business. It provides greater legal harmonization, removing some of the complexities of geographical variations in law.

MVNO market Ecosystem

Prominent companies in this market include a well-established, financially stable provider of the MVNO market. These companies have innovated their offerings and possess a diversified product portfolio, state-of-the-art technologies, and marketing networks. Prominent companies in this market include as Virgin Media Business (UK), Dataxoom (US), Lebara (UK), KDDI (Japan), Asahi Net (Japan), Virgin Mobile (US), Tracfone Wireless (US), Boost Mobile (US), Lycamobile (UK), Tesco Mobile (UK).

By subscriber, the enterprise segment is expected to grow with the highest CAGR during the forecast period

MVNOs are exclusively hosted in secure cloud environments, making their services more scalable, faster to deploy, and less CAPEX-intensive to manage. This also makes the MVNO model more viable for medium and large enterprises. For example, under enterprise MVNOs, employees could bring their phones to work and get a branded SIM and associated number while retaining their number. Any data used on corporate apps could be charged to employers, while private app usage could be charged directly to employees, whether roaming or at home.

Based on region, Europe is expected to hold the largest market size during the forecast period

European MVNO market has several other driving factors, such as the rising demand for affordable data packs, BYOD device capabilities, and easy accessibility to MVNOs. The region is home to large telecom companies, such as Orange, Deutsche Telekom, Vodafone, Telefonica, and Telecom Italia, which help MVNOs with reliable networks. In Europe, the overall MVNO market is robust and is expected to develop and advance over the forecast period. The market offers massive opportunities for MVNO providers, as various enterprises are moving from traditional MNOs to MVNOs.

Market Players:

The major players in the mobile virtual network operator (MVNO) market are as Virgin Media Business (UK), Dataxoom (US), Lebara (UK), KDDI (Japan), Asahi Net (Japan). These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches, product enhancements, and acquisitions to expand their footprint in the MVNO market.

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Scope of the Report

This research report categorizes the mobile virtual network operator (MVNO) market based on offering, functions, deployment model, organization size, vertical, and region.

Based on Operational Model:

• Reseller
• Service Operator
• Full MVNO

Based on Subscriber:

• Consumer
• Enterprise

Based on Service Type:

• Postpaid
• Prepaid

Based on Business Model:

• Discount
• Specialist Data
• Ethnic
• Business
• International/Roaming
• Youth/Media
• Bundled
• Others

Based on the region:

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • Australia and New Zealand (ANZ)
  • Rest of Asia Pacific
• Middle East & Africa
  • Middle East
  • Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments

• In March 2023, KDDI and Rakuten Mobile partnered to launch a new MVNO service for businesses. The service, KDDI Rakuten Mobile Business, was expected to offer mobile phone plans to businesses of all sizes.
• In February 2023, KDDI and NTT Docomo entered into a partnership to launch a new MVNO service for students. The service, called KDDI Docomo Student, was expected to offer mobile phone plans to students at participating universities.
• In January 2023, KDDI and China Mobile Japan partnered to launch a new MVNO service in Japan. The service, called KDDI China Mobile Japan, was launched to offer mobile phone plans to Chinese tourists visiting Japan.

Frequently Asked Questions (FAQ):

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