Mobile Virtual Network Operator (MVNO) Market Size Report, Growth Analysis & Forecast-2031

The Mobile Virtual Network Operator (MVNO) Market size is expected to grow from US$ 74.92 billion in 2022 to US$ 131.79 billion by 2030; it is estimated to grow at a CAGR of 7.3% from 2022 to 2030.

Analyst Perspective:

The mobile virtual network operator (MVNO) market has witnessed significant growth in recent years, driven by technological advancements and the growing adoption of 5G technology among consumers. High demand for affordable mobile wireless services among consumers is boosting the market. The growing use of digital technologies by customers for communication purposes and the everyday functioning of business is expanding the demand in the mobile virtual network operator market. Key players in the market are capitalizing on their internal and external communication functioning. Conceptualization of cellular services on other mobile network operators (MNOs) infrastructure allows vendors to provide consumers with low-cost services. This also attracts investments and participation of all types of cellular service providers to offer services on the MVNO model, which collectively translates into market growth.

Growing advancements in cellular infrastructure and government initiatives to support MVNO operators are fueling the market. For instance, in Europe, the government made strict regulations by mandating cellular service providers to support MVNOs to increase the telecommunication spectrum for customer's use. Additionally, 3G telecommunication bandwidth supports network operators to provide categorized services to niche business segments. Increasing demand for low-cost international calling among consumers to stay connected with family and friends is boosting the market during the forecast period.

Mobile Virtual Network Operator (MVNO) Overview:

The mobile virtual network operator is a communication service provider or entity that provides cellular/mobile services under its brand name using the existing infrastructure of any other mobile network operator (MNO). These network operators have their own cost structure, data & voice plans, and customer handling system. MVNOs provide low-cost services to their customers and generate profit through the rented spectrum. In recent years, the market for MVNOs has been driven by the increasing demand for competitive pricing from retail network operators. Several retail network operators such as electronics retailers, supermarkets, and department stores, are partnering with MVNOs for providing mobile services to their customers. These partnerships allow retail network operators to offer mobile services under their brand name, without investing in expensive network infrastructure. MVNOs for retail network operators can offer competitive pricing to customers across the globe. Mobile virtual network operators can negotiate favorable wholesale rates from network operators to offer lower price plans to their customers, which supports the customer to save money on their mobile bills. However, cost-saving benefits associated with superior services are a key factor boosting the market in the near future.

Strategic Insights

Mobile Virtual Network Operator (MVNO) Market Driver:

Growing Adoption of 5G Technology Projects is Driving the Market

Growing demand for 5G technology among consumers is driving the global market. 5G is a transformative advancement technology in the communication network industry that offers significant benefits to the user including faster data speeds, lower latency, increased network capacity, and the ability to support many connected devices. 5G technology is revolutionizing various industries and their applications by faster-transferring data between devices. The deployment of 5G networks is increasing the demand for MVNO among consumers for high-speed connectivity. Moreover, the advancement in 5G technology is anticipated to further boost the market growth during the forecast period, due to several benefits including network slicing, eSIMs, and fixed wireless access, among others. Major players are proactively introducing initiatives to adopt 5G in the mobile virtual network operator market to improve customer coverage and connection quality. For instance, in February 2023, Celcom Berhad (Malaysian MVNO provider) announced the disclosure of 5G service for its customers. The company offers 5G-supported Android device to their customers and provide access to the free 5G trial services. This service allows their customers to subscribe to any high-speed data plan ranging from 10 GB to 200 GB and the availability of 5G roaming services in more than ten countries. These initiatives help Celcom Berhad to attract consumers globally, thereby driving market growth in the near future.

Mobile Virtual Network Operator (MVNO) Market Segmental Analysis:

Based on contract type, the market is segmented into prepaid MVNO and postpaid MVNO. The prepaid MVNO segment is projected to expand rapidly during the forecast period attributed to significant benefits offered to customers, such as flexibility and cost-effectiveness compared to traditional postpaid plans. Many companies in the market are introducing numerous initiatives such as new product launches, mergers, and acquisitions, among others are driving the segment growth. For instance, in September 2022, Xiaomi launched two new prepaid wireless plans as its debut in the MVNO industry. The entry of new players in the market with a wide customer base and popularity supports the prepaid MVNO segment growth, propelling the market during the forecast period. Similarly, fixed-line and cable operators are acquiring MVNO service providers to expand their service offerings and upscaling their customer database by transforming their business models. For instance, in April 2022, Altice France signed an agreement to acquire Coriolis Telecom Inc., a prepaid and value mobile provider in France. This acquisition supports Altice France to provide prepaid MVNO services to its customers in France.

Mobile Virtual Network Operator (MVNO) Market Regional Analysis:

The market in Asia Pacific is projected to grow at a high pace during the forecast period due to the growing number of technological advancements such as smartphone penetration, connected mobile devices, and 5G technology, amongst others. The expansion of the region's telecom sector is creating an extensive client base for smartphones, which is driving the market. Growing consumer spending in wireless network services and increasing investment in the domestic telecom markets by India, Japan, Australia, Singapore, and South Korea are boosting the market across the region. Moreover, the continuous rise in the number of mobile phone base stations and the growing construction of 5G networks is fueling the market. For instance, according to Economic Operation of the Communications Industry, in July 2023, China built 3.055 million 5G base stations, accounting for 26.9% of the country's total number of mobile base stations. The Economic Operation of the Communications Industry also estimated that China's 5G mobile phone users reached 695 million, accounting for 40.6% of the total number of mobile phone users by February 2024. These trends are anticipated to fuel China's MVNO market during the forecast period. The Government of China is also aggressively developing its 5G industry to support numerous ICT companies including Huawei and ZTE. Similarly, according to the GSMA Association, China is planning to provide 807 million 5G connections by 2025, which is expected to boost the market in the near future.

Governments of developing nations are taking initiatives to transform their country into a digital societies. For instance, the Government of India’s Digital India program aims to transform the country into a digitally enabled society. Rising digitalization in developing countries like India and Indonesia increases the adoption of smartphones among consumers and is significantly contributing to market growth.

Mobile Virtual Network Operator (MVNO) Market Key Player Analysis:

The Mobile Virtual Network Operator (MVNO) Market analysis consists of players such as Lebara, KDDI CORPORATION, TP Global Operations Limited, Infobip ltd., FreedomPop, Lyca Mobile, AirVoice Wireless, Red Pocket Mobile, Orange, and DISH Network L.L.C., among the key Mobile Virtual Network Operator (MVNO) Market players profiled in the report.

Mobile Virtual Network Operator (MVNO) Market Recent Developments: 

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the mobile virtual network operator (MVNO) market. A few recent key market developments are listed below: 

• March 2023, KDDI CORPORATION partnered with Rakuten Mobile to launch a new MVNO ‘KDDI Rakuten Mobile Business’ service for businesses. KDDI Rakuten Mobile Business is expected to provide mobile phone plans to all businesses.
• February 2023, KDDI CORPORATION partnered with NTT Docomo to launch a new MVNO ‘KDDI Docomo Student’ service for students. KDDI Docomo Student service provides mobile phone plans to university students.
• January 2023, KDDI CORPORATION partnered with China Mobile Japan to launch a new MVNO ‘KDDI China Mobile Japan’ service in Japan. KDDI China Mobile Japan offers mobile phone plans to tourists from China visiting Japan.
• September 2022: Cloudflare Inc. launched the Cloudflare Zero Trust SIM, the first solution to secure data packets leaving mobile devices. This allows the organizations to effectively integrate devices with Cloudflare's Zero Trust platform to quickly and securely connect employee devices with Cloudflare's global network. Moreover, it prevents network and employees even without using Zero Trust SIM.
•  July 2022: Orange merges with MASMOVIL for their operations in Spain. Both companies are merging into a single & stronger operator, allowing investments in 5G and Fiber to benefit their customers throughout Spain.

• March 2022: Lebara began migrating to Telefónica, Germany, to introduce a new "Hello!" tariff world. By June 2022, the company will provide subscribers with a new SIM card by gradually transferring to the Telefónica network. This helped Lebara to improve its quality of services. Furthermore, the migration supports Lebara to evolve into a full-fledged and independent mobile communications provider capable of serving its worldwide customers' demands.

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