Mobile Virtual Network Operators Industry: Key Trends, Challenges and Standardization 2017-2022
April 21, 2017 in World News
The Global Mobile Virtual Network Operators Market has been estimated at USD 49.69 billion in 2016 and is projected to reach USD 84.58 billion by 2022, at a compound annual growth rate (CAGR) of 9.27% from 2017 to 2022.
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Mobile Virtual Network Operators (MVNOs) are companies that resell data and voice services with comparatively flexible plans and lower prices to major mobile network operators globally. MVNOs do not own infrastructure and spectrum; however, they purchase minutes of use (MOU) from mobile network operators (MNO) and sell them back to customers. Presence of more than 1,000 MVNOs globally in 2016, together accounting for around 10% of mobile users. Major MNOs such as T-Mobile and Verizon prefer to choose MVNOs to offload the additional capacity in bulk, for wholesale prices, which would instead remain unused and help cover the risk of losses.
The lack of utilization of the available 3G bandwidth has led to companies renting it out to the MVNOs as they can gauge the consumer parameters. Governments such as the European Commission have scaled up their efforts to support the MVNOs for the efficient use of available bandwidths. MNOs are on the verge of gaining more virtual customers; this helps them reduce the costs incurred in marketing and promotional programs. The need for cheaper service rates is increasing competition among service providers, who are compelled to see MVNO services as one of the most viable market strategies. The emergence of M2M (machine to machine), cloud and mobile money, coupled with increased data usage rates, are expected to increase the demand for MVNOs thus, driving the growth of the market. An increased emphasis on the value added services in comparison to the price differentiation has led to the MVNOs gaining a competitive edge as they offer a unique and viable services to the businesses and individual consumers alike.
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The rising penetrations of mobile phones through the rural and under-developed regions has created a diverse need for the mobile network services. The use of MVNOs to reach a wider area of coverage has led to a rise in the number of associations between various service and network providers. With the average number of subscriptions growing steadily with the number expected to cross one subscriptions per person is expected to drive the growth of the MVNO market over the forecast period. With consumer and businesses being the key subscribers of MVNOs, consumer subscribers form the majority in this segment due to the lower costs of voice and data services. Price is the major factor that drives clients to opt for virtual networks, compared to parent networks.
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Europe is estimated by research to be the highest market share holder in the global market while the developing region of Asia-Pacific is expected to register the fastest growth in the MVNO market through the forecast period as the number of mobile telephone subscribers are expected to grow at a CAGR of approximately 5.50% in the region as per the International Telecommunications Union (ITU) and national statistics. A significant growth is expected to witness in the Middle East and African regions as the telecom industry is growing rapidly to enlarge the consumer base.
The report includes the competitive assessment in terms of overview of market players, profiles, products and services, business strategies, recent developments and innovation, market landscape, future trends and forecasts, and mergers & acquisitions. The major companies dominating this market for its products, services, and continuous product developments are Lebara Group, KDDI Mobile, TracFone Wireless Inc., FRiENDi Mobile, Boost Mobile, Virgin Mobile USA, Tesco Mobile, Globecomm Systems Inc., Lycamobile, PosteMobile and Drilling Telecom GmbH.
Key Deliverables in the Study
- Market analysis for the Global Mobile Virtual Network Operators Market, with region specific assessments and competition analysis on global and regional scales
- Market definition along with the identification of key drivers and restraints
- Identification of factors instrumental in changing the market scenarios, rising prospective opportunities, and identification of key companies that can influence this market on a global and regional scale
- Extensively researched competitive landscape section with profiles of major companies along with their market shares
- Identification and analysis of the macro and micro factors that affect the Global Mobile Virtual Network Operators Market on both global and regional scales
- A comprehensive list of key market players along with the analysis of their current strategic interests and key financial information
- A wide-ranging knowledge and insights about the major players in this industry and the key strategies adopted by them to sustain and grow in the studied market
- Insights on the major countries/regions in which this industry is blooming and to also identify the regions that are still untapped
Table of Content:
1.1 Key Study Deliverables
1.2 Study Assumptions
1.3 Market Definition
1.4 Key Findings of the Study
2. Research Approach and Methodology
3. Executive Summary
4. Market Insights
4.1 Market Overview
4.2 Factors Driving the Market
4.2.1 Increasing Mobile Network Subscribers and Growing Penetration of Mobile
4.2.2 Rising Demand for Efficient Cellular Network
4.3 Factors Restraining the Market
4.3.1 Low Profit Margins
4.3.2 Reduced Tariffs
4.4 Industry Value Chain Analysis
4.5 Industry Attractiveness – Porter’s Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Consumers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products or Services
4.5.5 Competitive Rivalry among Existing Competitors
4.6 Current Opportunities in Market
5. Mobile Virtual Network Operator (MVNO) Market – by Operational Model
5.2 Service Operator
5.3 Full MVNO (Mobile Virtual Network Operator)
6. Mobile Virtual Network Operator (MVNO) Market – by Subscriber
7. Mobile Virtual Network Operator (MVNO) Market – by Application
7.2 Cellular M2M (Machine to Machine)
7.4 Media & Entertainment
8. Global Mobile Virtual Network Operator (MVNO) Market – by Services
8.1 Sales Service
8.2 Customer Service
8.3 Mobile Service (Marketing & Administering)
9. Global Mobile Virtual Network Operator (MVNO) Market by Region
9.1 North America
9.4 Latin America
9.5 Middle East and Africa
10. Mobile Virtual Network Operator (MVNO) Market Share
11. Competitive Intelligence and Profiles of Mobile Virtual Network Operator (MVNO) Market Vendors
11.1 Lebara Group
11.2 KDDI Mobile
11.3 TracFone Wireless Inc.
11.4 FRiENDi Mobile
11.5 Boost Mobile
11.6 Virgin Mobile USA
11.7 Tesco Mobile Ltd.
11.8 Globecomm Systems, Inc.
11.11 Drillisch Telecom
12. Investment Analysis
13. Future Trends in MVNO market
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