PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1250699
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1250699
According to Stratistics MRC, the Global Mobile Virtual Network Operator Market is accounted for $78.15 billion in 2022 and is expected to reach $142.27 billion by 2028 growing at a CAGR of 10.5% during the forecast period. A mobile virtual network operator (MVNO) is a business that provides wireless communications services but does not possess the wireless network infrastructure that uses to serve its clients. In order to obtain wholesale access to network services in large quantities, an MVNO enters into a business deal with a mobile network operator. The MVNO then sets retail prices independently. An MVNO can either use its own staff for customer service, billing support, marketing, and sales, or it might hire a mobile virtual network enabler (MVNE). Throughout the projected period, the market is expected to develop at a fast pace due to the increasing usage of data and value-added services such as e-commerce-based and live streaming services. Moreover, the rising mobile subscriber base and rising smartphone penetration around the world will significantly contribute to the industry's growth. While serving a variety of consumer needs, mobile virtual network operators do not possess the necessary infrastructure or radio frequency usage rights.
According to the GSMA, India is on its way to becoming the second-largest smartphone market globally by 2025, with around 1 billion installed devices. It is expected to have 920 million unique mobile subscribers by 2025, including 88 million 5G connections.
Increasing penetration of mobile devices
The market's predicted growth rate will be fueled by the increasing use of mobile devices. By the end of 2021, the GSMA predicted that 5.3 billion people, or about 67% of the world's population, would be subscribers to mobile services. In developing nations, the majority of individuals own a mobile phone, indicating that future growth will come from younger populations that are signing up for their first mobile subscription. An additional 400 million mobile users are anticipated during the forecast period, the majority of whom will come from Sub-Saharan Africa and the Asia-Pacific region.
Increasing competition among MNOs and MVNOs to hamper the market growth
The primary issue the MVNO is dealing with is a lack of wireless infrastructure because they do not possess any spectrum allocations. The fact that these wireless providers concentrate on specialized market segments implies that they must manage and optimize their investment in network infrastructure to maximize profits and minimize costs. In order to provide client services by renting access to voice and data services, the virtual network operators should make use of the MNO's wireless infrastructure. Mobile Virtual Network Operators are limited in their capacity to create new services because of their dependence on the network provider. This results in more competition with MNOs in established market segments.
Surging product launches
The major market competitors offer wireless services at prices that are competitive across the board, which will open up a wealth of prospects for the market's growth rate in the upcoming years. For instance, in July 2022, Boost Mobile launched Connected Vehicle. This is a fully customizable, turnkey solution for mobile internet. Everyone may simply obtain Wi-Fi in their car with Boost Mobile. Take several computers, tablets, and phones everywhere you go by connecting them to the consumer vehicle. Also, they may watch their preferred movies and television programs online, browse the web, and listen to their preferred music and podcasts while traveling for extended periods of time without using their cell phone's data plan. The linked vehicle package offers 5GB of 4G LTE mobile internet as well as a remote Wi-Fi hotspot.
Issues associated with mobile virtual network operator
In developing and undeveloped nations, a lack of technological know-how and a competent workforce will constrain market expansion. Moreover, poor service quality, shrinking profit margins, and reordering of priorities will again threatens the market's growth. Also, the expansion rate of the market will be slowed down by poor infrastructure and an inadequate MNO sector in developing nations.
Covid-19 Impact:
The COVID-19 epidemic increased the adoption of communication services that improve work-life balance and advanced the need for agile and flexible work styles. Furthermore, due to the global epidemic, telecom regulators delayed their plans for a 5G spectrum auction. The pandemic compelled telecom businesses to evaluate the robustness of their networks and review their planned investments, particularly in 5G technology.
The consumer segment is expected to be the largest during the forecast period
The consumer segment accounted for the largest market share during the projection period due to the rising proportion of single mobile users and the expanding mobile customer base in emerging markets. Moreover, in terms of innovation and pricing, the B2C, or consumer, segment has typically dominated over the B2B segment. Simple customer service is considerably easier to manage than billing and managing a fleet of devices. However, MVNOs prefer to invest in the consumer because of the convenience and profit margins.
The full MVNO segment is expected to have the highest CAGR during the forecast period
Full-MVNOs segment accounted for the highest CAGR and is anticipated to continue throughout the forecast period by installing a complete MVNO network architecture requires minimal cash upfront and costs associated with implementing call control, enabling users to make extremely cheap international calls. Moreover, the development of MVNOs is the result of MNOs' strategic decisions and regulatory actions to remove entry barriers and eventually promote competition.
Region with largest share:
During the course of the forecast period, the Asia-Pacific region will acquire the largest market share because it has consistently been at the forefront of adopting technological advancements like 5G technology, linked mobile devices, and smartphone penetration, among others. The Asia-Pacific region has a large market for smartphones because of its rapidly expanding telecom industry and large customer base. However, more money is also being spent in the region on wireless network services. India, Japan, Australia, Singapore, and South Korea are among the nations increasing their investments in the development of their domestic telecom markets.
The Asia Pacific region is anticipated to have the highest CAGR during the forecast period due to China's plans to allow commercial MVNO licenses, including licenses for foreign-invested companies, after the Ministry of Industry and Information Technology (MIIT) launched a public consultation to seek additional industry input and feedback on the government's proposal. Additionally, demand for smartphones at entry-level price points is projected to rise due to the growing use of smartphones in developing nations like India and Indonesia, where local governments are striving for mobile and digital economies and rural areas are gaining more access to smartphones.
Some of the key players in Mobile Virtual Network Operator market include AirVoice Wireless, Alphabet Inc. (Google Fi), Asahi Net, AT&T Inc., Boost Mobile LLC, Charter Communications Inc., CJ HelloVision Co. Ltd, Comcast Corporation, Cricket Wireless LLC, Drillisch Telecom, FreedomPop, FreeNet AG, Japan Communications Inc, KDDI Mobile, Kore Telematics, Lebara Group, Lyca Mobile, Ortel Mobile, PlatinumTel Communications, LLC, Poste Mobile SpA, Quebecor Inc., Rakuten Mobile, Republic Wireless, SK Telecom, TalkTalk Group, Tesco Mobile Ltd, Ting Inc., T-Mobile USA Inc., TracFone Wireless Inc, UPP Wireless, Verizon Communications Inc., Virgin Mobile, Truphone GmbH and Voiceworks GmbH.
In July 2022, PeP acquired Simapka to expand financial and mobile services in Poland. This acquisition would aid in developing an ecosystem wherein the payments would be bolstered by a variety of additional services provided by POS. The major objective is to ensure that retail outlets throughout Europe gain benefit from the steady digitization of payments through the solutions of Simapka's mobile application.
In May 2022, Cricket Wireless LLC announced a collaboration with the Southern Intercollegiate Athletic Conference (SIAC). This three-year agreement allows Cricket to provide unique experiences to SIAC fans at all Historically Black Colleges/Universities (HBCUs) member schools.
In December 2021, Lycamobile partnered with the Welsh Government to enable remote learning throughout the spring and summer. The Mobile Data Uplift Scheme was available to digitally excluded students in Wales as they returned to school and throughout the rest of the school year. This aimed to help guarantee that children had access to internet resources and did not miss out on crucial learning and development during a challenging time.
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Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances