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The mobile virtual network operator (MVNO) services market size is estimated to increase by USD 14.75 billion at a CAGR of 8.57% between 2022 and 2027. The increasing demand for mobile data and value-added services is pushing telecom companies to explore new business models like MVNOs to cater to different customer segments. The MVNO model allows them to offer specialized services and target niche markets, leading to increased adoption. Technological advances in MVNO services, such as improved billing systems and better integration with host networks, are also making MVNOs more attractive to both consumers and telecom companies.
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This market report extensively covers market segmentation by End-user (consumer and enterprise ), Type (reseller MVNO, service operator MVNO, and full MVNO), and Geography (Europe, APAC, North America, South America, and Middle East and Africa) and geography Europe, APAC, North America, South America, and Middle East and Africa.
The market share growth by the consumer services segment will be significant during the forecast period. The consumer segment of the global MVNO services market encompasses individual clientele who opt for prepaid and postpaid data and network offerings. This sector's expansion is anticipated to be fueled by the escalating Internet accessibility and the increasing prevalence of smartphones. Consequently, the surge in demand for smartphone-related data services is poised to support growth within this consumer segment.
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The consumer services segment was the largest segment and was valued at USD 10.53 billion in 2017. Smartphones serve diverse purposes, spanning online shopping, entertainment, and web browsing. The convenience of on-the-go Internet access, coupled with the proliferation of smartphone applications, is driving up the need for data services. Consequently, the demand for MVNO services, which offer cost-effective data and voice packages featuring high-speed connectivity, is on the rise. The affordability of services provided by MVNOs stands as a significant driver propelling the expansion of the consumer segment within the market throughout the forecast period.
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Europe is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Within the European context, the MVNO services market encompasses an array of business models catering to retail customers, commercial entities, the public sector, machine-to-machine (M2M) connections, and the Internet of Things (IoT). The overarching objective of the MVNO services market in Europe is to create an inclusive space that encourages the participation of all MVNOs, facilitating their more impactful contributions to the rapidly expanding mobile communications landscape. This inclusive environment aims to ensure that both consumers and corporate users benefit from a broader spectrum of diverse service offerings. Consequently, the heightened competition within the retail mobile market works in favour of consumers. Europe's stature as the most developed market for MVNO services is attributable to the assimilation of advanced mobile technologies, widespread smartphone adoption, and government support, collectively contributing to its robust status.
The market is regulated by bodies such as the Federal Communications Commission (FCC) and the General Data Protection Regulation (GDPR) to ensure the protection of Personally Identifiable Information (PII). MVNOs offer affordable plans, flexible options, and no credit checks, catering to a wide range of customers. They also provide specialized plans and have partnerships with companies like Spitfire Network Services Limited and BT Wholesale. The market is witnessing strategic initiatives such as mergers, acquisitions, and partnerships, with advancements like 5G technology and eSIMs driving growth and enabling services like network slicing and fixed wireless access. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing demand for mobile data and other value-added services is notably driving the market growth. The increasing use of smartphones, driven by affordable data plans, has created a greater demand for data and additional services. This trend is seen as people increasingly use their smartphones to access the internet and interact on social media platforms like Instagram, Facebook, and Twitter. Strategic initiatives, mergers, acquisitions, partnerships, and collaborations play a significant role in offering affordable plans, flexible options, no credit checks, wide device compatibility, and specialized plans to meet this demand. As smartphone adoption grows, manufacturers are offering a wider range of smartphones at different price points. The GSM Association predicts that the number of unique mobile subscribers will reach 5.8 billion by 2025, with a projected 79% increase in smartphone connectivity. Mobile Virtual Network Operators (MVNOs) also play a role in this market by increasing network usage for Mobile Network Operators (MNOs) and enabling them to introduce sub-brands. The increasing collaborations among companies to provide high-speed data services are expected to boost the global MVNO services market's growth in the coming years.
Improving telecommunication networks is an emerging trend shaping market growth. Telecom entities are directing their efforts toward enhancing network infrastructure and service quality. Substantial investments are being channeled into expanding network coverage, augmenting data velocity, and broadening the reach of mobile broadband (MBB) connections. Advancements in software capabilities empower mobile companies to significantly increase performance using existing hardware resources. A notable example is the capacity of wireless providers to deliver seamless video content. Implementation of these innovative technologies results in cost reductions and heightened network efficiency, facilitating seamless customer network transitions.
In addition, by collecting data on customer mobile handset usage and identifying patterns, operators can make informed decisions for long-term benefit. The results of these network enhancements can be harnessed by MVNOs to improve their service portfolio. Hence, the evolution of telecommunication networks is anticipated to power the growth of the global MVNO services market during the forecast period.
The lack of a favorable regulatory framework in MVNO services is a significant challenge hindering market growth. The MVNO concept faces uneven acceptance from mobile regulators and MNOs, with prevailing regulations primarily centered around network operators. This poses a significant hurdle for MVNOs as they contend with intense competition from MNOs, and the absence of a dedicated regulatory framework directly influences market competition dynamics. Predominantly, the regulatory landscape remains tailored to MNOs, warranting the establishment of a distinct regulatory structure to furnish MVNOs with a conducive environment for profitability.
Moreover, this involves strategizing to secure agreements with both network operators and customers, targeting underexplored niche segments. Achieving this necessitates adept negotiations with existing network operators. Further hindering progress, inadequate financing avenues for establishing fundamental systems and integrating back-office functions stand to impede the growth of the global MVNO services market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AdPay Mobile Payment India Pvt Ltd. - The company offers mobile virtual network operator (MVNO) services such as SIM cards, voice applications, and digital telecommunications networks.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is influenced by regulatory bodies like the Telecom Regulatory Authority of India (TRAI), National Broadcasting and Telecommunications Commission (NBTC), and Agência Nacional de Telecomunicações (Anatel), which oversee the industry. Companies such as BT Group's EE 4G and 5G Radio Access Network, Celcom Berhad, and Mobile X Global, Inc. are key players. The market has seen advancements like the introduction of 5G-supported Android devices and 5G roaming services, offering high-speed data plans and seamless connectivity. Hybrid MVNOs, utilizing blockchain technology for tamper-proof records, cater to consumer needs. Challenges include billing discrepancies and fraud, driving the need for cloud-native platforms for secure transactions.
In February 2023, a Malaysian MVNO provider introduced innovative 5G passes and free trials to attract customers, enhancing the market's competitiveness. The use of tablets has surged, driven by 5G technology advancements and the availability of shared spectrum. MSOs (Multiple System Operators) have strengthened their wireless infrastructures to support MVNO services. Both prepaid and postpaid MVNO models are thriving, with companies like Boost Mobile leading the way. The market is expanding into new areas like Connected Car services and Fios for B2C interactions, indicating a shift towards diverse offerings and customer engagement.
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Market Scope |
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Report Coverage |
Details |
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Page number |
165 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.57% |
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Market growth 2023-2027 |
USD 14.75 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
8.0 |
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Regional analysis |
Europe, APAC, North America, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 39% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AdPay Mobile Payment India Pvt Ltd., Alphabet Inc., AT and T Inc., Bharti Enterprises Ltd., Comcast Corp., DISH Network L.L.C., HTH Communications, Internet Initiative Japan Inc., Lycamobile UK Ltd., Marconi Wireless Holdings LLC, Porto Seguro Companhia de Seguros Gerais, Red Pocket Inc., Reliance Industries Ltd., Rogers Communications Inc., Superloop Ltd., Tata Sons Pvt. Ltd., Telefonica SA, TELUS Corp., The Kroger Co., and Verizon Communications Inc. |
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Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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