Report

Mobile Virtual Network Operator (MVNO) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

  • Publish Date: Apr,2023
  • Report ID: 16-13-1254
  • Page : 200
  • Report Type : PDF (Email)
Lebara Group BV - TracFone Wireless Inc. - FRiENDi Mobile - Boost Mobile LLC (T-Mobile) - Virgin Mobile USA Inc. - Tesco Mobile Limited (Tesco PLC) - Cricket Wireless LLC (AT&T Inc.) - Lycamobile UK Limited - PosteMobile SpA - 1&1 Drillisch AG - Airvoice Wireless LLC - ASDA Mobile - Giffgaff Ltd - Kaje New opportunities for MVNO are being created by new technology enablers like e-Sim, AI, machine learning, and edge computing.

Key Features
MVNOs are deep rooted in created markets and will turn out to be progressively significant in creating markets as they mature. Due to MNOs' prominence in the low-cost cellular services market in both developed and developing nations, competition in the MVNO market has shifted from pricing to value-added services and product differentiation in recent years.
The market is expanding because mobile devices are becoming more common. The GSMA predicted that there would be 5.59 billion unique mobile subscribers in 2019, up from 4.66 billion in 2015. In addition, it predicted that by 2020, 72% of the world's population would have signed up for a mobile service.
Over the forecast period, demand for mobile virtual network operators is also anticipated to rise due to a growing number of services like cloud, M2M transactions, and mobile money.
The Digital Single Market (DSM) strategy, which aims to improve consumers' access to network services in Europe and eliminate copyright and geo-blocking issues, is also anticipated to boost the market's growth over the forecast period.
Businesses are allowing their employees to work from home in order to maintain business operations in the wake of the COVID-19 outbreak (WFH), particularly in countries that have been severely affected. Internet traffic has increased by 50% for Vodafone UK. Customers can take advantage of Orange Espaa's free data bundles.
The COVID-19 pandemic will accelerate the adoption of communication services that tend to improve work-life balance and increase the demand for agile and flexible work styles. However, in the midst of the global pandemic, telecom regulators have put off auctioning 5G spectrum.
Key Market Trends The Consumer Segment Is Expected to Hold a Significant Market Share Among MVNOs, this is the primary and most emphasized segment. The primary drivers of the segment's expansion are the rising number of single mobile subscribers and mobile penetration in emerging economies.
It is normal that toward the finish of 2020, there is probably going to be 20.4 billion associated gadgets, and the number could reach 82 billion by 2025. Verizon recently invested USD 2 trillion in the market for networked endpoints and related services. The telecom industry and the subject of the study stand to benefit greatly from this.
In the past, innovation and pricing were more important to the B2B segment than to the consumer segment. A lot more difficult than providing straightforward customer service is billing and managing a fleet of devices. MVNOs also favor investing in the consumer market because of its convenience and higher profit margin.
The scope of the studied segment is also anticipated to expand as e-SIM adoption grows. MVNO vendors benefit from the simplicity and adaptability provided by the e-SIM and the GSMA's remote provisioning standards.
By the end of 2020, it is anticipated that approximately one billion e-SIM-connected devices will exist, according to G+D Mobile Security. However, it is anticipated that this will rise at an exponential rate to nearly 2 billion shipments by 2025. As the Internet of Things creates more and more crossover in B2C markets, the studied segment is further anticipated to be driven, not only by increased adoption of M2M technology but also by e-SIM in the consumer market.
The country of China has always been at the forefront of the adoption of technological advancements like 5G technology, connected mobile devices, and smartphone penetration, among others. As a result, China is expected to hold a significant market share in the region.
After the Ministry of Industry and Information and Technology (MIIT) launched a public consultation seeking industry input and feedback on the government's proposal to allow commercial MVNO licenses, including foreign-invested firms, China's mobile market planned to open up to commercial licenses for MVNOs.
In China, there were approximately 816.98 million mobile internet users in 2018, according to CNNIC. Additionally, the GSMA estimates that there were 1.65 billion SIM connections in 2019, rising to 1.73 billion by 2025. In addition, according to MIIT, China had installed approximately 449 million broadband connections in 2019. MVNOs in China are anticipated to see an increase in revenue over the forecast period as a result of these trends.
In addition, the Chinese government has been encouraging the growth of its 5G industry, favoring its own companies like Huawei and ZTE, which produce the hardware that is required for the technology to function. In addition, the GSMA predicts that 807 million 5G connections will be made by 2025. In 2025, China is predicted to have the most 5G connections worldwide.
Landscape of Competition There are a lot of players in the MVNO market, which makes it very competitive. The major players in the market are using strategies like service innovation and strategic partnerships to grow their clientele and remain competitive in the market, which is leading to market fragmentation. Lebara Group BV, TracFone Wireless Inc., and FRiENDi Mobile are just a few of the major players. Organizations are engaged with giving deals administration, client care, and portable help to supporters.

December 2019, 1&1 Drillisch AG planned to lease Telefonica's 5G mobile spectrum for its own network. In the 2.6 GHz band, there are two frequency blocks of 10 MHz each. 1&1 Drillisch will have access to the two frequency blocks until December 31, 2025. The Federal Network Agency needs to approve the agreement.
In September 2019, Lebara Group formed a partnership with ZEE5, the digital entertainment platform operated by ZEE Entertainment Enterprises, to provide South Asians with the largest collection of entertainment content. Customers of Lebara Australia will be able to bundle a ZEE5 subscription for six months with certain prepaid plans.