MVNO Market to Grow Strongly in the Next Five Years, As an Increasing Number of Regulators Embrace the Benefits of a More Competitive Telecoms Market, Says the New Study on ASDReports

Thursday 2 October 2014, Amsterdam

MVNOs are expected to grow faster than Mobile Network Operators (MNO); this growth will be driven mainly by developing countries as the European and North American MVNO markets are reaching a plateau. New services such as mobile money and M2M will help driving this growth, but the most important factor is the changing regulatory environment supporting MVNOs. the report expects critical markets to open their doors and create a more supportive regulation for MVNOs; increasing competition and consumer welfare in the telecoms industry.

Other developments such as decreasing ARPU, low customer satisfaction and increasing CAPEX from MNOs are also motivating the success of Mobile Virtual Network Operators. However, MVNOs are expected to represent only a small share of global connections in the next five years, as they face a high failure rates caused by increasing competition and lack of operational expertise in the telecoms industry.

Successful Mobile Virtual Network Operators do not usually have a large pool of resources to use or obtain saving from economies of scale; instead they operate efficiently and do not compete directly with MNOs. MVNOs have been moving away from direct competition with MNOs by offering new services to existing MNO customers and targeting specific niche markets such as migrant workers, veterans, businesses and young users.

The recent developments of the MVNO are not only expected to increase competition in specific telecoms markets. But also to allow big retailers and utilities companies to use their existent business and operational support systems to reap higher revenues by adopting MVNO strategies. End users are also expected to benefit from increasing competition as successful MVNO markets have decreased prices of specific services and improved customer satisfaction. Moreover, even Mobile Network Operators are benefiting from the MVNO progress by obtaining wholesale deals, increasing rate of network utilisation and creating their own MVNOs by launching sub-brands.

The report forecasts the MVNO market to reach more than 170 million connections at the end of 2014.

The size of the global market is expected to grow constantly with strong performance from developing countries such as China and India; these will generate increasing growth rates as their governments embrace the benefits of a more competitive telecoms market.

In terms of revenues, the report expects MVNOs to share a very small proportion of global telecoms revenues, but their growth is expected to be higher than global telecoms revenue growth.

The Mobile Virtual Network Operator (MVNO) Market Forecast 2014-2019: Future Prospects for the Industry & Leading Companies analyses the prospects for this market globally and regionally. Our forecast is based on the expected number of global connections obtained by five regional markets, each with its own set of drivers and barriers to entry. The products and strategies of 10 leading companies in the MVNO market are described and assessed. 99 unique charts, figures, and tables quantify and qualify this market, with complete regional segmentation. Additionally, this report has elaborated on the analysis of different sets of regulations and their consequences on the MVNO development in China and Latin America.

The Mobile Virtual Network Operator (MVNO) Market Forecast 2014-2019: Future Prospects for the Industry & Leading Companies report will be of value to companies evaluating a possible entrance to the MVNO market, current and future investors in the telecoms industry, professional services, Triple play providers, Mobile Network Operators, network backbone, mobile device industries and regulatory bodies looking to create more competitive telecoms markets as well as companies and research centres who wish to broaden their knowledge on this subject.