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Mobile Virtual Network Operator (MVNO) Market Size, Share, Trends, Key Players, Demand and Opportunities by 2023

Image result for mobile virtual network operator (mvno)The global mobile virtual network operator (MVNO) market was valued at $55,129.63 million in 2017 and is growing at a CAGR of 9.7% during 2018 – 2023 and will reach $98.03 billion by 2023. One of the major factors pushing the market growth is the technical flexibility provided by MVNOs. Although the telecom market in developed countries is maturing and the growth in the number of subscribers is expected to slow down, the ever-increasing demand for mobile internet is anticipated to provide growth opportunities to the market players during the forecast period.

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On the basis of category, the market has been categorized into prepaid and postpaid MVNOs. The postpaid category held a larger revenue share in the MVNO market in 2017. During the forecast period, the prepaid category is projected to register higher growth, on account of the growing mobile penetration in the developing countries of Asia-Pacific (APAC), Africa, and Latin America (LATAM), where prepaid schemes are more preferred over postpaid schemes, which carry fixed monthly rentals, irrespective of the usage.

APAC is set to become the largest MVNO market by 2019, globally. Established players have started expanding their footprints in the APAC region. Besides, local MNVOs are planning to expand the scale of their operations by adopting commercial models, tailor-made for the Asian market. The biggest challenge to the market is the low average revenue per user (ARPU) in the region compared to other markets, worldwide. Because of this, relatively smaller MVNOs struggle to generate profitable business in the market.

The growth of the MVNO market largely depends on the limitation of mobile network operators (MNOs) in marketing and distribution strategies in a particular geography. Successful MVNOs make optimum utilization of the existing telecom infrastructure, such as media and telecom, channel infrastructure, and customer database of MNOs.

Some of the major companies operating in the global MVNO market are AT&T Inc., Verizon Communications Inc., T-Mobile AG, CITIC Telecom International Holding Limited, Truphone Limited, Telefonica S.A., Virgin Mobile, Tracfone Wireless Inc. and Lycamobile Group.

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