PUBLISHER: Global Market Insights Inc. | PRODUCT CODE: 1462540
PUBLISHER: Global Market Insights Inc. | PRODUCT CODE: 1462540
Global Virtual Network Operator Market size will witness over 7% CAGR between 2024 and 2032, driven by escalating product launches from leading companies. As telecommunications providers seek innovative ways to expand their service offerings and reach new markets, VNOs have emerged as a viable solution.
For instance, in March 2024, Breezeline, previously known as Atlantic Broadband, announced its plan to introduce mobile services through agreements with AT&T and Reach, facilitated by the National Content & Technology Cooperative (NCTC). Joining the ranks of the NCTC, Breezeline could become the latest member to leverage the cooperative's MVNO deal with AT&T and its MVNE agreement with Reach to launch mobile services.
These companies leverage existing infrastructure to offer tailored telecommunications services, catering to specific customer segments or niche markets. With the rise of technologies like 5G and IoT, there's a growing need for flexible and scalable network solutions, further driving demand for VNO services. Leading companies are capitalizing on this trend by launching new VNO products and partnerships, fueling the growth of the VNO market and shaping the future of telecommunications.
The overall Virtual Network Operator Industry is classified based on the service, offering, end-user, and region.
The fixed virtual network operator (FVNO) segment will register a dominating growth rate from 2024-2032. FVNOs lease network infrastructure from established telecom operators to deliver fixed-line communication services to customers. By leveraging existing infrastructure, FVNOs can enter the market quickly and offer competitive services without the need for significant capital investment. This model appeals to businesses seeking to enter the telecommunications sector or expand their service offerings. As a result, the demand for FVNO services continues to grow, shaping the dynamics of the VNO market.
Virtual network operator market share from the postpaid segment will record appreciable growth through 2032. As consumers seek more flexibility and value-added services in their mobile plans, postpaid offerings from VNOs are gaining traction. These plans typically include features like unlimited data, international roaming, and premium customer support. With increasing competition in the telecommunications sector, VNOs are capitalizing on the demand for postpaid plans by offering competitive pricing and innovative services, driving growth in the market.
MEA virtual network operator market will witness a notable CAGR from 2024 to 2032. With increasing smartphone penetration and internet usage, there's a growing need for affordable and flexible mobile services. VNOs offer tailored solutions that cater to specific market segments, providing cost-effective alternatives to traditional telecom operators. Additionally, regulatory reforms and technological advancements are creating favorable conditions for VNO expansion in MEA.
As a result, the region presents lucrative opportunities for VNOs looking to capitalize on the burgeoning demand for mobile connectivity. For instance, in March 2024, Interswitch, the Nigerian payments company backed by Visa, announced its plan to venture into Nigeria's telecommunications industry with the acquisition of a Tier 5 MVNO (Mobile Virtual Network Operator) license. Obtained from the Nigeria Communications Commission (NCC) in May 2023, the license was secured for $1.08 million.