Mobile Virtual Network Operator (MVNO) Market by Operational Model (Full MVNO, Service Operator MVNO and Reseller MVNO)

According to a new report by Allied Market Research, titled, Mobile Virtual Network Operator (MVNO) Market by Operational Model and Type: Global Opportunity and Forecast, 2017-2023, the mobile virtual network operator (MVNO) market was valued at $51,857 million in 2016, and is projected to reach at $102,932 million by 2023, growing at a CAGR of 10.6% from 2017 to 2023. Cellular machine to machine (M2M) segment possesses high market potential, and is expected to create lucrative opportunities for industry players.

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An MVNO is a wireless communications service provider, which provides services without possessing the wireless network infrastructure. The global mobile virtual network operator market involves the study of various MVNO models, such as reseller, service operator, and full MVNO. MVNOs provide financial benefits to the mobile network operators (MNOs) through creation of new revenue streams, higher margins, and quicker return on investment. Further, niche segment tapping and obtaining a greater share of the total market traffic are the strategic benefits provided by the MVNOs. Moreover, some of the operational benefits offered are increase in overall performance by sharing business processes and network utilization.

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The current business scenario has witnessed surge in the adoption of MVNO in the developed and the developing regions, owing to the technological innovations in service offerings, rise in adoption for cloud-based solutions, and increase in application areas for Internet of Things (IoT) & Long Term Evolution (LTE) among telecom industry. In addition, supportive growth through regulatory compliance and increased number of mobile subscribers are expected to supplement the MVNO market growth during the forecast period. Growth in the development of telecom infrastructure expenditure in the emerging countries, improved service capabilities, and presence of lucrative opportunities for telecom industry are expected to fuel the demand for MVNO market. However, increase in operational costs associated with deployment of affordable services and low profit margins & reduced tariffs due to the presence of low cost input by the players are expected to hamper the MVNO market growth.

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