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.

                             Global Mobile Virtual Network Operator Market, 2014-2025 (USD Billion)

Mobile virtual network operators (MVNO) lease wireless capacity from mobile network operators (MNOs) at wholesale prices and resell them to the consumers at reduced prices under their own brand name. The MVNOs around the world offer their customers with reasonable and attractive network plans along with many value added services in a bid to gain a larger market share in a highly competitive market structure. The MVNOs can afford these reduced rates as they do not have to invest in buying radio frequency and spectrum license, thereby maintaining low overhead costs. The objective of the aggressive pricing and marketing strategies set in place by these MVNOs is to draw in more customers to the virtual operators.

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.

Various industry verticals such as retail, media and entertainment are coming up with their own MVNO services to broaden their consumer reach and create a stronger brand recognition in the market. For instance, T24 mobile is a MVNO by the Future Group, an Indian retail brand which uses its extensive distribution channel to sell the SIM cards to its customers. The store recharges the SIM when a customer purchases any product from any of the store owned by the Group. In this manner, different industries are channeling the MVNOs models to create brand recognition.

1. the basis of subscribers, the consumer segment held the largest market share in 2017. This was aided by high demand for MVNOs offering conventional network solutions coupled with customer specific value-added services. A large number of network operators are making the most out of the MVNO model. The MVNOs are a source of profit generation for the network operators as these virtual operators enable lower operational costs in terms of billing, sales, marketing and customer service. The virtual network operators help the MNOs target a wider range of customers having specialized service needs and reach the customer niches which the MNOs can’t reach.

                    Global Mobile Virtual Network Operator Market Share, by Application, 2017 (%)

MVNOs are springing up everywhere and the reason for this resurgence is the availability of cheap network rates. The wholesale rates for network capacity has dropped around 65% in the last five years. The maturity of the telecom market has reduced the routes to market for the big carriers such as AT& and Verizon. Therefore, the carriers have merged MVNOs in to their distribution strategies.

Europe held the largest MVNO market share in terms of revenue. This is due to the presence of more than 60% of total MVNOs in the region. Western Europe has evolved into a mature MVNO market with Netherlands, Germany, Denmark, Norway, and Switzerland contributing a majority share in the region. The U.S. MVNO market share was the highest in North America owing to the presence of two of the largest MNOs globally, i.e. AT&T with a brand value of around USD 115 billion, followed by Verizon, which is valued at about USD 89 billion.

Key Segments Of The Global Mobile Virtual Network Operator (Mvno) Market

Operation Model Overview, 2014 - 2025 (USD billion)

• Reseller
• Service Operator
• Full MVNO
• Others

Subscriber Overview, 2014 - 2025 (USD billion)

• Business
• Consumer

Application Overview, 2014 - 2025 (USD billion)

• Discount
• Cellular M2M (Machine to Machine)
• Business
• Media & Entertainment
• Migrant
• Retail
• Roaming
• Telecom
• Others

Services Overview, 2014 - 2025 (USD billion)

• Sales Service
• Customer Service
• Mobile Service
• Others

Regional Overview, 2014 - 2025 (USD billion)

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Italy
  • France
  • Germany
  • Russia
  • Rest of Europe
• Asia-Pacific
  • Australia
  • China
  • India
  • South Korea
  • Japan
  • Rest of Asia-Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East and Africa
  • GCC
  • South Africa
  • Rest of Middle East and Africa

Reasons for the study

• The purpose of the study is to give an exhaustive outlook of the global MVNO industry.
• Global telecom industry is witnessing a surge in the number of virtual operators to meet the demands of an ever-increasing number of mobile phone subscribers. Cheap talk time plans and attractive offers on data, media and other value-added services have led to customers turning to MVNOs to meet their network demands.
• Furthermore, retail industries are setting up their own MVNOs leveraging on their existing assets and are making use of their existing distribution channels. This has led to the rapid increase in the number of MVNOs globally thereby assisting the growth of the market.

What does the report include?

• The study on global mobile virtual network operator market includes qualitative factors such as drivers, restraints, and opportunities
• Additionally, the market has been evaluated using the value chain and Porter’s five forces analysis.
• The study covers qualitative and quantitative analysis of the market segmented on the basis of operation model, subscriber, application, services and region. Moreover, the study provides similar information for the key geographies.
• Actual market sizes and forecasts have been provided for all the above-mentioned segments
• The study includes the profiles of key players in the market with a significant global and/or regional presence

Who should buy this report?

This study is suitable for industry participants and stakeholders in the MVNO market. The report will benefit:

• Executives of mobile virtual network operator companies.
• Managers within financial institutions looking to publish recent and forecasted statistics pertaining to MVNO market.
• Venture capitalist looking into investing capital.
• Government organizations, regulatory authorities, policymakers and financial organizations looking for innovative MVNO solutions.
• Analysts, researchers, educators, strategy managers, and academic institutions looking for insights into the market to determine future strategies.