Mobile Virtual Network Operator Market Research Report: By Service Type (Discount, Telecom, Media & Entertainment, Business, Retail, Migrant, M2M, Roaming), Category (Postpaid MVNO, Prepaid MVNO), Business Model (Full MVNO, Service MVNO, Reseller MVNO), Subscriber (Consumer, Enterprise) – Global Industry Analysis and Growth Forecast to 2031

Market Overview

The global mobile virtual network operator (MVNO) market generated revenue of $66,582.0 million in 2020, which is expected to witness a CAGR of 7.1% during the forecast period (2021–2031). The surge in the penetration of mobile devices and demand for low-cost mobile services, rapid growth of triple-play services in developing countries, and increasing demand for high-speed internet connectivity are some of the key factors supporting the growth of the market across the globe. Moreover, the rising demand for improved voice, video, and mobile internet is a key growth driver for MVNOs, who offer these services at a lower cost than mobile network operators (MNO).

The COVID-19 pandemic had a negative impact on the MVNO market in the first quarter of 2020. While operators were able to keep the majority of their customers despite the pandemic, because network connectivity is still essential to most consumers and businesses, store closures resulted in lower subscriber additions and device sales. Although the market is growing as a result of customers' demand for remote working and constant connectivity, the growth slowed in 2021 due to financial losses and setbacks for some industries and small businesses.

Cellular Machine-to-Machine (M2M) Services Expected To Witness Fastest Growth during Forecast Period

During the forecast period, the market for cellular M2M services is projected to grow at the highest CAGR, on the basis of service type. This would be due to the increasing adoption of cellular connectivity in all types of machines, ranging from vehicles to vending machines; advancements in the 3G M2M technology, and extension of mobile network coverage.

Prepaid Category Expected To Witness Faster Growth during Forecast Period

Of the bifurcations under the category segment, the prepaid category is expected to witness the faster growth during the forecast period. Prepaid schemes, particularly those offered via the pay-as-you-use model, are being increasingly preferred as they allow people to choose their plan as per their requirements.

Europe Held Largest Share in Market

Globally, Europe held the largest share in the MVNO market in 2020, and it is expected to lead the market during the forecast period as well. The presence of a huge number of MVNOs and significant average net revenue per user (ARPU) are the most-important factors for the robust market growth in the European region. Furthermore, the increasing adoption of integrated services, such as voice over internet protocol (VoIP), through MVNOs is also contributing to the expansion of the market.

Asia-Pacific (APAC) Is Expected To Be Fastest-Growing Regional Market

During the forecast period, the industry is projected to attain the fastest growth in the APAC region due to the collaborations between MVNOs and mobile phone manufacturers. Further, developing countries, such as China and India, are working consistently on the betterment of their information technology (IT) and telecom industries, for providing enhanced and efficient services to the populace. Moreover, the increasing number of mobile subscribers, growing smartphone penetration, and increasing usage of mobile data are some of the key factors supporting the growth of the MVNO market in the region.

Collaboration between MNOs and MVNOs

Since the inception of this technology in the early 2000s, the relationship between MNOs and MVNOs has grown significantly, becoming more business oriented in recent years. MNOs are now looking for the best MVNO partners to maximize the use of their resources and generate additional revenue. The host network and MVNOs face significant threats from each other; however, the stiff competition among MNOs has resulted in an increase in the number of collaborations between them and MVNOs. Over the years, MVNOs have capitalized on MNOs' marketing and customer acquisition capabilities, resulting in an increase in MNOs' wholesale revenue. As a result, MNOs now recognize the value added by MVNOs to their business.

Segment-Targeted Pricing and Innovative Distribution Strategies Are Positively Impacting Market Growth

MVNOs cater to various customer needs through the optimum utilization of the existing telecom infrastructure of MNOs. The success of MVNOs depends largely on unique brand positioning and value proposition for target customers, such as specific ethnic groups, migrant workers, and tourists. MVNOs identify the possible targets to expand the business and attract them with sharp pricing strategies. Thus, the increasing focus of MVNOs on segment-based pricing strategies is resulting in the growth of the MVNO market.

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Rapid Growth of Triple-Play Services Is Driving Market Growth

Triple-play services are bundled packs offered by service providers consisting of broadband internet access, television, and latency-sensitive telephone services. The concept of triple-play services has been quite successful in North America. In the U.S., telecom operators are increasingly offering triple-play services to provide better value and retain more customers. It is likely that in a few years, triple-play services would be delivered throughout the world via the internet. Mobile phones are progressively becoming a multi-feature gadget, their functionality expanding beyond voice calls. Thus, the demand for bundled packs is increasing, which is positively shaping the MVNO market outlook across all regions.

Market Players Launching New Services to Stay Ahead of Their Competitors

The global MVNO market is fragmented in nature with the presence of a large number of players. However, the market is primarily dominated by few companies, namely Verizon Communications Inc., AT&T Inc., T-Mobile US Inc., and Lycamobile Group. In recent years, players in the MVNO market have launched a number of services to stay ahead of their competitors. For instance,

In April 2021, BT Group plc announced that it will start expanding its 5G network across the U.K. once the lockdown starts to be lifted. The company has established outdoor 5G coverage at some of the U.K.’s most-popular tourist landmarks, including historical sites and coastal locations. The company has established 5G connectivity in a total of 160 U.K. towns and cities.

In December 2020, Verizon Communications Inc. announced the launch of on-site long-term evolution (LTE), which is a private network for enterprise customers. On-Site LTE provides customers with a private on-premises wireless network platform to run critical business applications and operations.

Key Players in MVNO Market Include:

Mobile Virtual Network Operator Market Size Breakdown by Segments

The global mobile virtual network operator market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2031.

Based on Service Type

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

Based on Category

• Postpaid MVNO
• Prepaid MVNO

Based on Business Model

• Full MVNO
• Service MVNO
• Reseller MVNO

Based on Subscriber

• Consumer
• Enterprise

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• APAC
  • China
  • Japan
  • India
  • Australia
  • South Korea
• LATAM
  • Brazil
  • Mexico
• Middle East and Africa (MEA)
  • Turkey
  • Saudi Arabia
  • South Africa
  • U.A.E.