Mobile Virtual Network Operator Market: Current Trends, Opportunities and Challenges

The global mobile virtual network operator (MVNO) market is led by a handful of companies rendering marked competition among them, states Transparency Market Research (TMR) in a new report. AT&T, Virgin Group Ltd., and Verizon communications are top shots holding leading share in the market. These large companies are considering mergers and acquisitions and strategic alliances to bolster their position across geographies. Initiatives to offer cutting-edge technologies at competitive prices also remains a key objective of these companies to retain their dominance. This includes serving untapped business areas in order to gain competitive edge. Furthermore, large players are providing bundled up services, notably in developed regions, in a bid to offer differentiator services and boost their revenue earnings.

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Apart from this, immense growth opportunities is attracting small-sized vendors to enter the market through business alliances and partnerships. This is likely to magnify competition in the MVNO market, adds the report.

As per the TMR study, the global MVNO market is poised to expand at a CAGR of 7.2% in terms of revenue between 2017 and 2023. At this pace, the market will increase from US$49.51 bn in 2017 to US$75.25 bn by the end of 2023. The market was worth vis-à-vis revenue. By subscriber type, the consumer segment hold dominance in the overall market mainly because of incessantly increasing demand for low-cost data and voice services among an increasing customer base. Geography-wise, Europe holds prominent position in the MVNO market as the region accounts for the largest number of MVNOs worldwide. Government regulations that support mobile virtual network operator services is bolstering the growth of this market. Low-cost bundled up differentiator services offered by mobile network operators (MNOs) is also accentuating the growth of this regional market.

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The staggering rise in mobile subscriber base in several parts of the world and practices of leasing excess bandwidth of 3G telecom operators is primarily driving the MVNO market. The excess bandwidth is leased to third-party service providers to serve the incessantly rising demand for low-cost data and voice services. Thus, initiatives to utilize existing assets of mobile network operators is boosting the demand for mobile virtual network operators. The rising demand from consumers for secure yet affordable voice and data services is further aiding the MVNO market.

Increasing government support for maximum utilization of existing bandwidth is attracting service providers for mobile virtual network operator services. MVNOs are using excess bandwidth of MNOs. This is helping the latter utilize the whole bandwidth allocated by the government and convert into revenue.

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