Mobile Virtual Network Operator (MVNO) Market Report: Size and Share Analysis, Trends, Forecasts (2024-2030)

The global MVNO market was valued at USD 79.2 billion in 2023 and is expected to grow at a CAGR of 8.8% during 2024 - 2030.

• This is ascribed to the surge in the penetration of mobile devices and demand for low-cost mobile services; rapid growth in the need for triple-play services in developing countries; and an increase in the requirement for high-speed internet connectivity.
• Moreover, the rising demand for improved voice, video, and mobile data and the surging penetration of the internet are other key growth drivers for mobile virtual network operators (MVNOs), who offer these solutions at a lower cost than mobile network operators.

MVNO Market Trends & Drivers

Focus On Value-Added Services Instead of Price Differentiation

• While traditional, full MVNOs accounted for the majority of the MVNO market revenue during the historical period, new players are entering the market with the primary focus on value-added services.
• Banks, smartphone vendors, supermarkets, media companies, and other entities have entered the market with new MVNO business models. These players are giving a stiff competition to the existing players in terms of cost differentiation.
• As a result, the traditional players in the market too have started focusing on value-added services, such as managed services, internet protocol private branch exchange (IP PBX), and business solutions, instead of price differentiation.
• These value-added services can contribute up to 25% of the revenue from enterprises and, when bundled with other calling packages, can help the companies grow and boost their income.
• Companies are also targeting particular customer segments with customized and dedicated value-added offerings. The MVNOs in the business sector are gradually expanding in both developed and developing countries by offering value-added services.

Cloud Deployment of Solutions Drives the Industry

• In recent years, cloud deployment has gained significant traction, with several MVNOs deploying solutions on the cloud for their operations.
• However, only a few MVNOs have deployed cloud technologies on their infrastructure. Thus, the cloud deployment of solutions is expected to remain a driving factor for the market in the years to come.
• A large number of mobile operators have shifted toward flat network architecture since the introduction of long-term evolution (LTE), 4G, and 5G standards.
• This architecture enables cloud-based applications and solutions to be offered via the platform-as-a-service (PaaS) model. These solutions can include everything from billing, customer relationship management (CRM) integrators, and product catalogues to invoicing and bill formatting. PaaS services can be shared among MVNOs, thus resulting in cost benefits due to load elasticity.
• Moreover, MVNOs also utilize the public cloud infrastructure, which provides them with cost benefits and business agility, thus ultimately helping them in gaining and retaining customers.

Decreasing ARPU for MVNOs

• Customer acquisition in the MVNO market is majorly affected by the high wholesale prices for mobile traffic. All the MVNO business models are highly dependent on the MNOs’ telecom infrastructure in a particular region. Most of the MNOs in developing countries charge a high wholesale traffic fee. In China, the wholesale traffic fee is about double the standard retail price.
•  Moreover, the ARPU for MVNOs in developing countries is a lot lower compared to the developed countries of North America and Europe. The difference in the prices of the services offered by different MNOs has made it difficult for MVNOs to create attractive offerings for price-sensitive customers in developing countries.
• MVNOs differentiate themselves from MNOs in terms of the pricing and user experience by offering a low-cost, easy alternative to MNOs. The effective partnership between MNOs and MVNOs is expected to have a high impact on the price sensitivity in the telecom market.
• Several new MVNOs with specific target audiences are planning to enter developing countries where the MVNO market is in the embryonic phase. However, the high price sensitivity, along with the lower ARPU, is acting as a roadblock.

In-Depth Segmentation Analysis

Prepaid Category to Grow with Faster Pace

• The prepaid category will be expected to grow faster during the forecast period, advancing at a CAGR of over 9.3%. This can be because people are choosing prepaid plans, as these provide them the freedom to customize their plans to meet their needs, especially those that use the pay-as-you-use model.
• Whereas, the postpaid category accounted for a larger revenue share in 2023, and it is further expected to dominate the industry during the predicted period. This is because consumers do not need to pay anything upfront, and also get a monthly bill as per the usage of services while opting for postpaid plans. Moreover, their unlimited service provision and facility of roll-over unused data further contribute to the market growth in this category.

Category covered in the report include:

• Postpaid MVNO (Larger Category)
• Prepaid MVNO (Faster Category)

Service Type – Discount is the Largest Category

• The discount category accounted for the largest revenue share, of over 35%, in 2023, and it is also expected to maintain its dominance during the forecast period. This is ascribed to the rapid digitization, rising customer engagement, surging need for MVNO solutions in small and mid-sized enterprises, and declining costs of telecom services due to the increasing competition in the industry.  
• Whereas, the cellular M2M category will witness the fastest growth during the forecast period. This can be attributed to the increasing usage of cellular connectivity across a range of devices, from automobiles to vending machines; advancements in the 3G M2M technology; and extension of mobile network coverage. Furthermore, initiatives taken by several MVNOs to expand their range of services further support the market growth in this category.

The following service type are included in the report:

• Discount (Largest Category)
• Telecom
• Media & Entertainment
• Business
• Retail
• Migrant
• Cellular Machine-to-Machine (M2M) (Fastest Category)
• Roaming

Full MVNO Category Holds 55% Share

• The full MVNO category accounted for the largest revenue share, of over 55%, in 2023, and it is further expected to dominate the industry during the predicted period. This model is become popular, as MVNOs operating on it provide their SIM cards, upsell their services as value-added services, and ensure complete customer ownership and relationship.
• Moreover, in the coming years, non-telecom companies, such as retailers, financial institutions, and postal service providers, are expected to enter the industry through the full MVNO business model, which further contributes to the market.

Business model covered in the report are:

• Full MVNO
• Service MVNO
• Reseller MVNO

Subscribers Overview – Consumer and Enterprise

• The consumer category holds higher revenue share in 2023, and it is expected to maintain its position in the coming years as well. This is ascribed to the rising number of mobile network subscribers and the mounting penetration of mobile devices.
• The surging penetration of mobile devices propels the usage of data-intensive applications, such as internet browsing and video streaming. As a result, increasing investments are being made to improve the network coverage and raise the number of mobile broadband (MBB) connections, which further drive the market growth in this category.

It is further classified as:

• Consumer
• Enterprise

Europe is the Largest Region

• The European market accounted for the largest revenue share, around 45%, in 2023, and it is further expected to maintain its dominance in the future, advancing at a substantial CAGR. This is due to the high adoption rate of advanced technologies, infrastructure development, and the presence of a large number of MVNOs and significant ARPU.
• Furthermore, the increasing adoption of integrated services, such as voice-over internet protocol (VoIP), also supports the growth of the regional market.
• Whereas, the APAC market will witness the fastest growth in the coming years. This can be ascribed to the collaborations between industry players and mobile phone manufacturers.
• Germany is the largest market in Europe, due to the presence of a large number of MVNOs (140 presently) supports the growth of the market in the country. For instance, in March 2022, Vodafone Germany announced plans to achieve the nationwide coverage of its 5G SA network, which uses 700-MHz and 3.5-GHz spectra, by 2025. The network will use the ‘5G+’ brand, as the service rolls out across the country. The added functionality enabled by 5G SA is key to delivering on the 5G promise of fully supporting advanced 5G use cases. This helps explain why operators cite 5G SA as the most-important 5G network feature for enterprise success.
• In the same vein, at MWC22, Orange revealed its 5G SA suppliers in Europe, opting for Ericsson’s core network in Belgium, Spain, Luxembourg, and Poland, and Nokia’s equivalent offering in France and Slovakia. Testing and trials were to be conducted in 2022, with commercial launches from 2023.
• Additionally, developing countries, such as China and India, are working consistently on the betterment of their IT and telecom infrastructure, for providing enhanced telecommunication solutions.
• Moreover, the development of the APAC market is projected to be significantly influenced by nations, such as India, South Korea, Malaysia, Japan, China, and Australia, having sophisticated cellular networks. For instance, MVNOs provide surveillance, online gambling, M2M, and remote vending machine management across the region. They additionally offer voice-controlled solutions in the healthcare sector for patient monitoring and security applications.

Further, regions and countries analyzed for this report include:

• North America
  • U.S. (Larger Country Market)
  • Canada (Faster-Growing Country Market)
• Europe (Largest Regional Market)
  • Germany (Largest Country Market)
  • U.K. (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (Fastest Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea (Largest Country Market)
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest Country Market)
  • Mexico (Fastest-Growing Market)
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa
  • U.A.E. (Largest and Fastest-Growing Country Market)
  • Rest of MEA

Competitive Analysis

The market has a high degree of fragmentation, owing to many domestic and international players. The continual appearance of new entrants is impacting the established and new service providers. Organizations can choose any service to fulfil their particular cybersecurity needs, due to the presence of numerous players.

Global MVNO Market Companies’ Recent News

• In December 2022, Boost Mobile launched its services at more than 7,500 7-Eleven stores across the U.S. This retail expansion would make it easier for prospective customers to purchase SIM kits and other wireless services.
• In February 2022, Red Pocket Inc. entered into a strategic partnership with Vonage America LLC, which provides cloud communication solutions.
• Airvoice Wireless LLC was acquired by HTH Communications in January 2022, the move enabled HTH Communications to scale up its business and provide services in all 50 states.