Global Mobile Virtual Network Operator ( MVNO) market size worth $89.25 bn by 2022.
Mobile
Virtual Network Operator (MVNO) market size is forecast to generate USD
89.25 billion revenue by 2022; as per a new research report by Global Market
Insights, Inc.
Growing disposable income and growing
migrating population, particularly from Asia Pacific, for education and
employment is expected to drive the global MVNO market.
Operators offer numerous services
such as sports, M2M, measuring devices, and surveillance. Voice controlled
remote device services in patient monitoring, security, and medical
applications are forecast to create opportunities for Japan MVNO market growth.
Favorable regulatory frameworks in the European Union are expected to
play a crucial role in regional market development.
Major operator types include
full, light/thin, intermediate/medium, and branded resellers. In developed
regional industries such as the UK, Germany and U.S., revenue generation is
expected from data and VAS usage owing to increasing 3G, 4G, and LTE network
deployments.
Managing personal data, connected
living, and increasing digital commerce activities are expected to provide
significant growth opportunities along with increasing consumer benefits.
Increasing number of mobile subscribers is one of the major drivers, along with
technological advancements, smartphone demand, and mobile broadband
connections.
Key insights from the report
include:
Global MVNO subscriber base was
174 million in 2014 and is forecast to reach 413.1 million by 2022, at 11.6%
CAGR from 2015 to 2022.
U.S. MVNO market size is
predicted to surpass USD 30 billion by 2022. Competitors catering to the region
target price sensitive consumers that do not opt for multi-year contracts or
subscriptions.
The cost of acquiring and
retaining new customers is comparatively high, particularly for fixed term
contracts. Access to voice and data services at low cost is expected to be the
key interest for customers.
Europe MVNO market share was more
than 45% in 2014. Promotion of interconnection and interoperability of
services, along with increasing broadband and FTTH usage will drive revenue in
the coming years.
Network operators, consumer brand
& distribution leaders, media and content owners can leverage existing
brands and produce a low-risk investment proposition, which takes advantage of
the continuing high growth in the mobile industry to reach high-value customer
segments.
Low average revenue per user
(ARPU) is a major consideration for players in the Africa MVNO market. Key
focus areas are niche segments, smartphones & data services, and advanced
technology services.
Virgin Mobile, Lebara Mobile,
Lyca, Poste, Freenet, etc. are among key industry participants. Companies focus
on high degree of customization as well as mergers and acquisitions to gain
global MVNO market share. For example, in October 2014, Telefonica completed
the acquisition of E-plus to expand its global presence. Unfavorable
regulations in some countries, high capital requirement, maintaining economies
of scale, and offering product & segment differentiation to MNOs may
restrict new players.
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