Mobile virtual network operator (MVNO) typically means a reseller of telecommunication services. However, this simple definition has transformed with time across geographies. The role of MVNO includes anything from selling telecom services through SIM applications and just providing marketing and distribution services to providers of high-end technologies that enable significant savings to enterprises. However, MVNOs do not own the spectrum licenses; therefore, have almost no control over the network connectivity or routing.  MVNOs are coerced to offer a differentiated experience to the customers to retain their competitive edge. This compels them to deliver more than just marketing functions or the role of customer service executive. MVNOs have well penetrated into B2B and B2C business models through convergent solutions such as broadband, fixed phone, software licenses, M2M solutions, Cloud, IoT, AI solutions, and so on. Despite continuous innovation, MVNOs are facing intense competition among themselves as well as directly from mobile network operators who are giants and have control over the spectrum. Mobile Virtual Network Operator (MVNO) market is expected to grow at a CAGR of 7.4% during the forecast period 2023-2030. 

Increasing government support

MVNOs are using spare bandwidth provided by MNOs. This is helping the latter earn extra money, because the whole bandwidth allocated by the government is being used. Governments are supporting MVNOs’ moves to reduce household communications expenses and expand the telecom industry. Many governments such as China and Korea are pushing the uptake of 5G to enhance the quality and speed of services. Similarly, in Asia Pacific, government has been immensely supporting its domestic players, by allowing limited entry to the international players.  Though this is not great news to the key international players, this is resulting in significant amount of fragmented revenues split across geographies. The domestic MVNOs have been very efficient in distribution services as well as understanding the customer needs.  The dynamics are very different in the U.S. and Europe where the government support and regulatory framework are significantly favourable to MVNOs and allow co-existence with MNOs.  

The Full MVNOs Dominate the Market Revenues

Based on the operational segment, the MVNO market is categorized as reseller MVNO, Service operator MVNO and Full MVNO. The Full MVNOs contributed highest to the market revenues. The plethora of service portfolio that full MVNOs can provide makes them the largest segment. Service Operators rank second followed by the reseller MVNOs. Reseller MVNOs have very limited role and capacity and their operations are well controlled by the MNOs thereby limiting their market revenues. 

The Discount MVNOs Lead in terms of Market Revenues

Based on the MVNO type the market is segmented as business/enterprise MVNOs, Discount MVNOS, M2M, media, migrant, retail, roaming, and telecom MVNOs. The discount MVNOs lead the market in revenue generation due to low-cost services that these MVNOs provide. Telecom industry is price sensitive industry; cost efficiency is the core competitive factor that influences the sale and choice of MVNOs in the industry. Telecom MVNOs are the second largest followed by migrant and retail MVNOs. 

Europe Takes the Lions Share

In terms of geography, Europe holds the largest market owing to largest number of subscriber base, access to technology and large number of MVNOs that exist in Europe. However, this region is characterized by intense competition and reducing margin that is not attracting the growth of MVNOs. Europe is followed by North America, which has favorable regulatory framework and huge customer base that is driving the market. APAC and RoW are comparatively new markets that have huge scope of growth in the coming decade. China is growing significantly with strong support from the government favoring the domestic players. Emerging market are promising significant opportunities due to lesser dominance of giant telcos, the MVNOs have flexibility to design the package and determine price as per the customer requirement. 

Collaboration Remains as a Key Strategy

AT&T remains the market leader interms of portfolio and business strength. The company is significantly active with respect to its 5G deployment activities, connected vehicles and IOT solutions. For instance, AT&T integrated 5G with Microsoft Cloud to enable Next-Generation solutions on the Edge. KDDI and AT&T are to Connect Toyota and Lexus Vehicles. However, AT&Ts key strategy is collaboration. The company is collaborating widely to offer extensive offering to its end users. The most preferred strategy among the key players is collaboration. This strategy remains obviously important as MVNOs independently lack technical expertise in all of the technological solutions, at the same time it is not feasible to provide end-to-end tech solutions for all the verticals. Therefore, MVNOs are actively collaborating with feasible partners to leverage the infrastructure and technical expertise. This also signifies the rising demand of various technological solutions at the enterprise level. 

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Mobile Virtual Network Operator (MVNO) market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Mobile Virtual Network Operator (MVNO) market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Mobile Virtual Network Operator (MVNO) market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Mobile Virtual Network Operator (MVNO) market?
• Which is the largest regional market for Mobile Virtual Network Operator (MVNO) market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Mobile Virtual Network Operator (MVNO) market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Mobile Virtual Network Operator (MVNO) market worldwide?