The revenue of the mobile virtual network operator (MVNO) market was estimated at USD 60.84?billion, in 2019.?It is expected to reach USD 84.66?billion, by 2025, witnessing at a projected CAGR of ?6.83%, during?the forecast period, 2020-2025. New Technology enablers like e-Sim, AI, ML and edge computing are creating new opportunities for MVNO.
- Growing penetration of mobile devices is driving market growth. It was predicted by GSMA that the number of unique mobile subscribers will grow from 5.1 billion in 2018 to 5.8 billion in 2025, while the percentage of smartphone connection will rise from 60% (2018) to 79% (2025).
- Moreover, technological advancements in cloud and virtualization are expanding market growth. Percentage of total IoT revenue (whose major portion comes from Cloud Data Analytics) is predicted to rise from USD 176 billion in 2018 to USD 754 billion in 2025, according to GSMA intelligence.
- There is low-profit margin in this market because MVNOs offer cheaper rates to consumers by renting spectrum from major carriers. They function as wholesalers, who purchase bandwidth in chunks from the big carrier networks, and sell at a discount to consumers.
Scope of the Report
Mobile Virtual Networks are a standard feature in competitive and saturated markets, and many regulators are now using them in order to boost competition and further their own goals for consumer and business markets.MVNOs are also addressing specific market segments to bring additional segments into the subscriber base on the host operator network.Their service offerings have shifted from voice and text to data-centric
Key Market Trends
Cloud Deployment to Lead the Market Share.
- Cloud platforms are making it easier for brands to enter the market. Cloud-based communication platforms which combine all the back-office systems required to become an MVNO with the services to build exciting customer experiences and aggregated network capacity are changing the game.
- With public cloud spending increasing, MVNO service offerings have built differentiated value propositions around integrated offerings tied to the parent company’s other goods and services, such as gaming or enterprise cloud services.
- With 5G deployments enabling network slicing, MVNOs target specific verticals with solutions that bundle their specific connectivity needs with cloud services
Asia-Pacific to Witness the Highest Growth
- According to GSM intelligence report, Asia-Pacific is the most improved region due to significant improvements in scores for infrastructure and content & services. Most improved countries were Myanmar and India.
- As per MVNOS Congress Asia’s survey 2018, the MVNO market in the APAC region has been named the front runner in regards to the growth opportunities for MVNOs
- Of the 710 million people expected to subscribe to mobile services for the first time over the next seven years, half will come from the Asia Pacific region. (The Mobile Economy Report 2019)
- The east-asian market will lead 5G adoption, which is necessary for MVNO to expand.
MVNO market is slowly fragmenting as it is moving towards providing solutions and services to businesses and not only customers. They are involved in providing sales service, customer service and mobile service to subscribers.
- May 2019 - Airbus launched MXLINK, its Secure Mobile Virtual Network Operator (SMVNO) for Mexican Public Safety and Defence authorities. MXLINK is the first of its kind in Mexico and Latin America and offers multi-operator coverage and interoperability with the National Radiocommunication Tetrapol Network.
- May 2019 - Cable provider Altice USA is planning to provide mobile service through a mobile virtual network operator arrangement in place with Sprint.
- July 2018 - BSNL launched its Virtual Network Operator Services on a pan-India basis in collaboration with Virtual Network Operators (VNO) Adpay Mobile Payment India and Plintron India. Both the VNOs have integrated their system with BSNL mobile infrastructure and are ready to offer services to retail customers.
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