Market analysis and insights

The global market for mobile virtual network operators (MVNOs) is anticipated to grow at a CAGR of 8.03% from 2022 to 2030, when it will be worth USD 833.74 billion.

The requirement for mobile data services is rising, interest in low-cost and specialised MVNO services is rising, the accessibility of 4G and 5G networks is expanding, and the use of mobile devices in new fields is rising. These are some of the factors that are fuelling this rise. A mobile virtual network operator (MVNO) is a supplier of wireless services without a dedicated mobile spectrum or network equipment. As an alternative, they rent wholesale privileges to the networks of mobile network operators (MNOs) and resell mobile services behind their brands. Due to their ability to offer affordable rates and adaptable service options, MVNOs can draw in a variety of customers and enterprises. By types, end-use, and region, the MVNO market is divided. Full MVNOs, reseller MVNOs, plus service operator MVNOs are the three categories into which the market is split. The customer care, billing, and marketing departments of full MVNOs are independent. Reseller MVNOs merely redistribute the products and services of additional MVNOs and MNOs.

MVNOs owned by service providers are generally subsidiaries of different business categories, such as retailers or producers of mobile devices. Consumer and business divisions make up the MVNO market according to end-use. Throughout the projected period, it is anticipated that the consumer sector will hold the greatest market share. However, because businesses are utilising mobile devices and services more frequently, it is anticipated that the enterprise market will expand more quickly. The MVNO market is split into North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa based on region. Over the projected period, Asia Pacific is anticipated to be the market with one of the biggest and fastest growth. This is because many people are living there, there are more people with disposable income, and more people are using mobile devices. The importance of MVNOs in the global mobile market is rising. Mobile services are becoming increasingly available to a larger spectrum of customers and companies thanks to MVNOs’ affordable pricing and adaptable service options.

Mobile virtual network operator Market  Scope

Market Definition

A mobile virtual network operator (MVNO) is a company that offers wireless communications services but does not own or manage the wireless network infrastructure it uses to serve its clients. Instead, an MVNO enters into a business deal with a mobile network operator (MNO) to get wholesale access to network services and then independently sets retail prices. Prepaid wireless plans are primarily offered by MVNOs on a subscription approach. They might also provide additional services like mobile broadband, mobile TV, as well as mobile VoIP. MVNOs have several benefits over conventional MNOs.

First, since MVNOs often have reduced overhead expenses, they may provide more affordable prices. Second, because they are not confined to a particular network architecture, MVNOs can be more adaptable in the services they provide. Third, MVNOs might target particular niche markets, such as enterprises or ethnic communities. MVNOs are significant players in the international mobile market. They provide customers and businesses with more options while lowering pricing. As more individuals move to mobile broadband along with additional mobile services in the next years, the MVNO industry is anticipated to expand.

Key market segments

Insights on Key Types

The Full MVNO is the type of mobile virtual network operator (MVNO) that dominates the global market. Full MVNOs run their own customer support, billing, sales, and marketing departments. They also offer a variety of mobile services, such as phone, data, and text messaging, and have their own name identity. Full MVNOs can offer the widest range of service options and have the most authority over the client experience. Full MVNOs run their own sales, marketing, billing, and customer service departments. Additionally, they have a distinct brand identity and provide a variety of mobile services, such as voice, data, and text messaging. The most flexible service choices can be provided by full MVNOs, which also have the most authority over the consumer experience. The most prevalent and rapidly expanding kind of MVNO on the international market is full MVNO. This is because complete MVNOs provide the most control and freedom. Full MVNOs can target specialised markets and provide cutting-edge services that aren’t supplied by conventional MNOs. 

Reseller MVNOs

Reseller MVNOs only resell the products and services of other MVNOs or mobile network operators (MNOs). Typically, they don’t have their own customer support, billing, marketing, or sales activities. Reseller MVNOs often provide a smaller selection of services than full MVNOs, but they may be more affordable for customers and companies. The worldwide MVNO market still includes a sizable number of reseller MVNOs. Reseller MVNOs might provide a more constrained selection of services along with less customer care, but they are often more affordable than full MVNOs. Consumers and companies searching for a basic mobile service at an affordable price sometimes find reseller MVNOs to be interesting.

Service Operator MVNOs

MVNOs for service providers are frequently owned by different business categories, such as retailers or producers of mobile devices. As an addition to their primary business, they provide mobile services. Compared to complete MVNOs, service operator MVNOs often offer a more constrained selection of services, but they may be more useful for consumers and enterprises that are already clients of the parent company. Although service operator MVNOs are a relatively fresh form of MVNO, their market share is expanding quickly worldwide. MVNOs for service providers are frequently owned by different business categories, such as retailers or producers of mobile devices. As an addition to their primary business, service operator MVNOs provide mobile services. Customers and companies that already use our services may find this to be a useful solution.

Insights of Key End Users

The consumer segment is the most dominant end-user group in the worldwide MVNO industry. The vast majority of MVNOs’ subscribers worldwide are consumers. Due to their higher price sensitivity than enterprises, consumers are more inclined to move to MVNOs to save money. The consumer segment dominates the worldwide MVNO market. Many factors draw customers to MVNOs. In general, MVNOs charge less than conventional mobile network providers (MNOs). Because they are not required to create while keeping their network infrastructure, MVNOs can do this. More service plans are available from MVNOs than MNOs. Customers can now select the package that best suits their needs thanks to this. MVNOs frequently use specialised products to target particular consumer segments. For instance, some MVNOs have plans designed especially for college students, elderly, or low-income people.

Businesses

Businesses make up a major portion of the worldwide MVNO market. Businesses are drawn to MVNOs for a variety of reasons, including money savings: MVNOs can lower a company’s mobile expenses. Businesses can get specialised mobile solutions from MVNOs that are tailored to their need. MVNOs give companies the freedom to scale up or down their mobile services as necessary. In the upcoming years, the business segment, which is expanding quickly, is anticipated to take up a larger share of the worldwide MVNO market. This is being caused by organisations’ growing reliance on mobile devices and services.

Insights on regional analysis

The market share belongs to the Asia Pacific region, which dominates the worldwide MVNO industry. This is because many people are living there, there are more people with disposable income, and more people are using mobile devices. The region with the largest share of the worldwide MVNO market is Asia Pacific. In the Asia Pacific region, Japan, China, and India are some of the biggest MVNO markets. Because of the intense rivalry amongst MVNOs in these markets, costs have decreased and service options have become more creative.

North America

In comparison to other regions, the North American MVNO market is less developed and competitive. Tracfone Wireless, Boost Mobile, as well as Cricket Wireless, are some of the biggest MVNOs in North America. These MVNOs often provide affordable prepaid service packages.

Europe

The MVNO market there is more fiercely competitive than the one in North America. The biggest MVNOs in Europe are Lebara Mobile, Lycamobile, and Virgin Mobile. These MVNOs usually concentrate on specific niche markets, like enterprises or ethnic groups.

Latin America

Market growth for MVNOs in Latin America is accelerating. Brazil, Mexico, and Colombia are some of the biggest MVNO markets in Latin America. These markets are characterised by expanding populations and rising mobile device penetration.

Middle East and Africa

The Middle East and Africa mobile virtual network operator market is still developing. The market, however, is anticipated to expand quickly in the upcoming years. In the Middle East and Africa, among the biggest MVNO markets are Saudi Arabia, Egypt, and Nigeria. A youthful population and rising disposable incomes are features of these markets.

Key players

These businesses are present throughout the world and provide a broad spectrum of mobile services, such as phone, data, and text messaging. Additionally, they focus on a range of customer groups, including consumers, companies, and specialised industries.

Among the leading companies in the worldwide MVNO market are: Virgin Mobile, Tracfone, Lycamobile, Boost Mobile, Cricket Wireless, Ting Mobile, Republic Wireless, US Mobile, Mint Mobile, Visible, FreedomPop, Truphone

Covid-19 Impact and Recovery Analysis

The COVID-19 pandemic has experienced a conflicting effect on the worldwide MVNO industry for mobile virtual network operators. On the one hand, the pandemic has reduced the requirement for mobile services as individuals have been staying at home more and travelling less. This has had an adverse influence on MVNOs, which often rely on prepayment plans that are well- liked by consumers with modest incomes and travellers. On the other hand, as more individuals are beginning to operate from their homes and streaming more media, the pandemic has also increased demand for data services. This has helped MVNOs, who frequently provide more adaptable and cost-effective data plans than conventional mobile network operators (MNOs). Globally, the COVID- 19 epidemic has hurt the MVNO sector. However, as the economy improves and people start travelling more again, it is anticipated that the market will revive in the upcoming years. The adverse effects include reduced consumer demand for mobile services as a result of more time spent at home and less travel. Churn rates rise as customers move to more affordable or adaptable cell plans.

MVNOs have trouble attracting new clients because of social exclusionary practices. Interruptions in the supply chain that cause SIM card and mobile device shortages. The advantages include the Requirement for data services has increased as a result of streaming and remote work. Possibility for MVNOs to overtake MNOs in market share by providing more adaptable and cost-effective data plans. MVNOs are putting more of a focus on digital channels, which could be advantageous in the long run. Globally speaking, the COVID-19 pandemic has experienced a conflicting effect on the MVNO industry. However, as the economy improves and people start travelling more again, it is anticipated that the market will revive in the upcoming years. MVNOs that can adjust to the changing market climate and provide cutting-edge, adaptable services will be successful in the post- pandemic period. 

Latest trends and analysis

• Japanese companies, KDDI and Rakuten Mobile have launched an MVNO service. (March 2023)
• In Japan, KDDI and NTT Docomo introduced an MVNO service for students. Feb. 20, 2023
• A New IoT platform from Truphone is available to MVNOs.(Jan. 2023)
• Sierra Wireless was purchased by Semtech for $1.2 billion. (Jan. 2023)
• In the US, Virgin Mobile introduced a new 5G service. Dec. 20, 2022
• A new prepaid service from Tracfone Wireless offers limitless data. (2022 November)
• In India, Lycamobile introduced a new MVNO service. (2022 October)
• In Mexico, Boost Mobile introduces a new MVNO service. (Sept. 2022)
• In Colombia, Cricket Wireless introduced a new MVNO service. August 2, 2002

Significant Growth Factors

Both consumers and businesses now depend on mobile data services. Compared to conventional mobile network operators (MNOs), MVNOs frequently provide pricing that is more affordable and flexible for data plans.

MVNOs are progressively focusing their offerings on specialised niche areas. For instance, some MVNOs have plans designed especially for college students, elderly, or low-income people. Consumers and companies may now access quicker and more dependable mobile connectivity thanks to 4G and 5G networks. As a result, MVNOs can provide a greater variety of high-quality mobile services, increasing their client appeal. Rising use of mobile technology and services in developing markets. In emerging markets, the use of mobile equipment and services is expanding quickly. This is giving MVNOs additional chances to broaden their customer base and reach.

The expansion of the worldwide MVNO market is additionally being helped by several other developments, including the rising use of eSIMs, the expanding use of cloud-based MVNO mediums, and the expanding collaborations between MVNOs and MNOs. Overall, the MVNO business is poised for strong growth over the next few years. MVNOs give customers and businesses more options while assisting in price reduction. All of the aforementioned elements are causing the MVNO business to expand and are presenting new chances for MVNOs to prosper.

Restraining factors

To access MNOs’ networks, MVNOs are dependent. It may be challenging for MVNOs to effectively compete with MNOs as a result of this, which may give MNOs considerable influence and control over them. In general, MVNOs churn more quickly than MNOs do. This is because MVNO consumers are typically more price-conscious and are more inclined to switch to various MVNOs if they find an improved deal. Customers might not be familiar with many MVNOs because they are not well-known companies. The ability of MVNOs to attract new clients may be hampered as a result. In several nations, MVNOs may run into regulatory issues. For instance, legislation in some nations can place a cap on the total amount of MVNOs allowed to compete.

The expansion of the global MVNO industry may be constrained by the aforementioned causes as well as economic downturns, technical disruptions, and heightened rivalry from other mobile network operators. The global MVNO market is anticipated to expand over the next several years despite these obstacles. MVNOs give customers and businesses more options while assisting in price reduction. MVNOs are well-positioned to prosper in the Global MVNO industry if they can overcome the issues mentioned above and provide cutting-edge, cost-effective services.