2024/11/27 09:24:23

Mobile Virtual Network Operator MVNO

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2023: The global market for virtual mobile operators grew by 9% over the year, to $31.41 billion
2021: The global market volume of virtual mobile network operators amounted to $73.3 billion
2018
- Data from Orbis Research
- WiseGuyReports Data
See also

There are about two hundred MVNOs in the global market, among which there are several large players operating around the world and having millions of subscriber bases - VirginMobile, TalkTalkGroup, Giffgaff and others. They are large organizations with several thousand employees and functioning as full-fledged operators.

2023: The global market for virtual mobile operators grew by 9% over the year, to $31.41 billion

At the end of 2023, the costs in the global market of virtual mobile operators (MVNO) amounted to $31.41 billion. For comparison, a year earlier, expenses in this area were estimated at $28.73 billion. Thus, there was an increase of 9%, as stated in the material Market Research Future, published at the end of November 2024.

The study says that the MVNO industry is experiencing a significant rise due to an increase in demand for cost-effective services. The growing penetration of smartphones and the need for mobile data is pushing consumers toward the flexible pricing models offered by virtual operators. The fact is that MVNO companies, thanks to the use of the existing communication infrastructure of the base operator, usually incur lower operating costs, and therefore can offer affordable tariff plans for niche markets, as well as for an unattended segment of customers. This is very important in the formed macroeconomic situation, when consumers seek to reduce costs as much as possible.

In addition, MVNO operators are able to quickly change and adapt their services according to customer preferences. In particular, more personalized packet services may be offered for certain groups of subscribers, such as streaming enthusiasts. The introduction of eSIM (built-in SIM) technology is another opportunity to enable MVNO to improve the user experience by providing flexible service options. Technological advances, including infrastructure expansion, also have a positive impact on the market. 5G Such networks not only improve customer experience with faster data rates and lower latencies, but also enable MVNO to offer innovative products and services.

The authors of the report identify four key market segments: voice, data services, messaging services and additional services. In 2023, data services brought the most revenue - approximately $10.8 billion. This is due to the constantly growing demand for Internet access, streaming services and all kinds of applications. Overall, mobile data consumption is a driving force in the telecommunications industry. Voice communications provided revenue of $7.5 billion, while messaging services accounted for $4 billion. Another $9.11 billion was the contribution of additional services. Significant players in the global MVNO market are:

FreedomPop;
Boost Mobile;
CricKet Wireless;
Consumer Cellular;
Google Fi;
Mint Mobile;
TracFone Wireless;
Airvoice Wireless;
Gomo;
Lycamobile;
Republic Wireless;
Virgin Mobile;
Simple Mobile;
Ting;
Metro by TMobile.

North America leads geographically with costs of $10.5 billion in 2023. Spending in the Asia-Pacific region was recorded at $9 billion, and Europe provided a contribution of $8.4 billion. In South America, the revenue of MVNO operators amounted to about $2.8 billion, in the Middle East and Africa - $0.7 billion.

The evolving telecommunications landscape, fueled by growing consumer demand for cost-effective mobile services, is driving market expansion, analysts say.

At the end of 2024, revenue in the MVNO services segment is estimated at $34.33 billion. Market Research Future analysts believe that in the future, the CAGR (average annual growth rate in complex percentages) will be 9.31%. As a result, by 2032, costs on a global scale could rise to $70 billion.^[1]

2021: The global market volume of virtual mobile network operators amounted to $73.3 billion

On March 8, 2022, a report was published, according to which the global market for virtual mobile network operators (MVNO) amounted to $73.3 billion in 2021. The global virtual mobile operators market size is projected to reach $140.2 billion by 2030 at a CAGR of 7.5% during the forecast period 2022-2030.

The introduction of various services such as mobile money and machine-to-machine (M2M) transactions is a major factor driving the growth of the global virtual mobile operators market. In addition, the development of cloud computing and big data analytics is projected to drive market growth. The growth of mobile device penetration will contribute to the growth of the market during the studied time period. Growing government initiatives to reduce copyright and geo-blocking issues, as well as demand for stable access to network services, are also projected to drive market growth.

The volume of the global market for virtual mobile network operators (MVNO) in 2021 amounted to $73.3 billion

The COVID-19 pandemic has changed the whole view of the work system. To maintain continuity, commercial organizations allowed employees to work from home (WFH). Thus, this increased Internet penetration and further spurred the growth of the global market for virtual mobile network operators. Vodafone UK recorded a 50% rise in internet traffic.

The services of virtual mobile network operators also help the healthcare sector by offering voice services to monitor patients. As a result, the global market for virtual mobile operators will grow along with the growth of the healthcare sector. High operating costs are expected to slow the growth of the global virtual mobile operators market.

Geographically, Asia Pacific is projected to be the fastest growing region in the global virtual mobile network operator market. The growth of the market for virtual mobile network operators in the Asia-Pacific region is due to the development of the telecommunications industry. In addition, the authorities of developing countries such as Myanmar, India, China and Vietnam pay special attention to the modernization and growth of telecommunications amenities. Thus, the global market of virtual mobile network operators will grow significantly in the Asia-Pacific region. Moreover, the growing healthcare sector in Asia Pacific will provide ample growth opportunities for market players.

During the COVID-19 epidemic, demand for improved network infrastructure quickly increased. Due to the blocking of enterprises, the company allowed employees to work from home in order to maintain performance during a pandemic. Thus, the consumer base has increased significantly. The COVID-19 epidemic has accelerated demand for communication services to maintain efficiency. The growth of the healthcare sector has also contributed to the growth of the global virtual mobile operators market.^[2]

2018

Data from Orbis Research

The mobile virtual telecom operator (MVNO) market will grow at a CAGR of 8.8% over the next five years. Such data are contained in a study by analysts at Orbis Research. At the same time, experts note that the volume of the global market in 2017 amounted to $54.1 billion^[3].

According to the study, there are now about 1,000 mobile virtual telecom operators in the world. Their services are used by 10% of all mobile users. In fact, MVNO companies buy minutes of mobile operators (MNO), which are interested in unloading additional containers at wholesale prices, and resell them to customers. In the next five years, a serious increase in competition in this area is expected. Demand for cheaper tariff rates will also increase. Also, the growth in the popularity of MVNO should be affected by the projected creation of M2M technologies and cloud money, coupled with an increase in data processing speed.

Europe dominates the MVNO market. Recent technological breakthroughs have helped promote new services in the region that can make shared processes more efficient. For the same reason, the accuracy of various applications is expected to increase. A series of new product launches, mergers and acquisitions have also been undertaken in Europe.

WiseGuyReports Data

By the end of 2020, 110.7 million people will use the services of mobile virtual operators (MVNO) in Europe. Such data are contained in a report compiled from a study by WiseGuyReports analysts. The total CAGR from 2015 to 2020 is expected to be^[4].

Experts also concluded that the MVNO market will continue to be the largest by 2020. Germany It will feature more than 140 mobile virtual operators. The second place in terms of the pace of implementation of this technology will take. Great Britain The number of subscribers in these countries at the end of 2015 is 23 million and 14.1 million people, respectively. WiseGuyReports ranks Belgium, Spain Denmark and Holland among other centers of growth.

WiseGuyReports analysts give a basic list of reasons that directly affect the increase in the popularity of MVNO in Europe. Among them are the increasing penetration of smartphones and the active introduction of 4G and 4G + formats. The expansion of the range of additional services also has a beneficial effect. Breakthrough growth until 2020 can be observed not only in traditional MNVO sectors, but also, for example, in the M2M segment.

The most preferred business model on the continent will remain an approach involving various service discounts. Its share is 21%. The niche approach, aimed at pensioners, young people, students and employees of non-profit organizations, is practiced by 20% of those present in the MVNO region. Another 19% of operators are focused on business.

Experts note that a favorable regulatory system remains an important element in the development of the MVNO market. For mobile operators, special rules of the game are being developed that stimulate competition and are focused on reducing tariffs and eliminating barriers for new operators.