Mobile Virtual Network Operator (MVNO) Market - Increasing Competition to Create Severe Challenge

The global mobile virtual network operator (MVNO) market demonstrates a highly competitive business landscape, states a new report by Transparency Market Research (TMR). At the forefront of this market are AT&T, Virgin, and Verizon, which are exclusively involved into strategic alliances, mergers, and acquisitions on a worldwide level. Apart from this, a large pool of small-scale vendors are also looking towards gaining a strong foothold in the global market through mutual partnerships and agreements. With the increasing focus of these players on strengthening their position in this market is likely to intensify the competition over the next few years. The leading vendors are expected to adopt cutting-edge technologies at competitive pricing in the near future to achieve an edge over the competitors, notes the research study.

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According to TMR, the global market for MVNO, which stood at US$45.86 bn in 2016, is anticipated to proliferate at a CAGR of 7.40% over the period from 2015 to 2023, reaching a value of US$75.25 bn by the period of the forecast. Over the coming years, the demand for full-MVNO model is expected to remain high, discount type MVNOs are projected to continue on the leading position and, individual consumers will remain the key subscriber group of MVNOs

Geographically, Europe, which is the current market leader, is anticipated to retain its position in the years to come, thanks to the increasing support by the governments and concerned regional bodies in various European economies. The initiatives by European Commission to enable large-scale implementations of MNOs and MVNOs and to assist in MVNO mergers are also expected to aid the Europe market for mobile virtual network operator in the near future, states the report.

Shifting of Excess Bandwidth to Boost Market’s Growth

“Thanks to the shifting of excess bandwidth by 3G telecom operators into MVNO and MNO for leverage, the global market for MVNOs is witness a high rise in its valuation,” says a TMR analyst. In developed economies, a large amount of 3G bandwidth is being wasted, which can easily be rented out to MVNOs, who can use this bandwidth to boost up their revenue generation capacity and to provide much better services to customers.

Since, a number of MVNOs do not need 4G/LTE internet access to gauge consumer parameters and perform setups at present, which still is essential for MVNO functions, renting out 3G bandwidth will support this market substantially. The governments in various economies have also stepped in to support MVNOs for encouraging a more efficient usage of the available bandwidths. This, as a result, will also add to the growth of this market in the years to come, reports the study.

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Increasing Competition to Create Severe Challenge

Over the forthcoming years, the increasing competition among mobile virtual network operators, triggered by the increased entry of new players, may pose a threat to the growth of the global market for MVNOs in the near future, as it will affect their average revenue per user. The market saturation in the developed regions are also projected to hinder the growth rate of this market over the next few years. However, the technological advancements in telecommunication will normalize the effect of these limitations in the years to come, states the research report.

The review is based on a report by Transparency Market Research (TMR), titled “Cell Expansion Market (Cell Type - Human Stem Cells, Human Differentiated Cells, and Animal Cells; Product - Instruments, Consumables, and Disposables; End User - Hospitals, CMO & CRO, Biotechnology & Pharmaceutical Companies, and Academic & Research Institutes) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016–2024.”

Transparency Market Research (TMR) is a next-generation provider of syndicated research, customized research, and consulting services. TMR’s global and regional market intelligence coverage includes industries such as pharmaceutical, chemicals and materials, technology and media, food and beverages, and consumer goods, among others. Each TMR research report provides clients with a 360-degree view of the market with statistical forecasts, competitive landscape, detailed segmentation, key trends, and strategic recommendations

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This release was published on openPR.