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+7% CAGR Growth to Be Achieved by Mobile Virtual Network Operators (MVNO) Market According to New Research

Key players profiled in this report are: LycaMobile, Virgin Mobile, Truphone, TracFone, Boost Mobile, FRiENDi, Giffgaff, Lebara, FreedomPop, Freenet AG, UPP Wireless, GIV Mobile, KDDI Mobile, Polkomtel Plus, Tesco Mobile Ltd, Net10 Wireless, RedPocket Mobile, AirVoice Wireless

 

Pune, India -- (SBWIRE) -- 03/16/2018 -- This report studies the global Mobile Virtual Network Operators (MVNO) market, analyzes and researches the Mobile Virtual Network Operators (MVNO) development status and forecast in United States, EU, Japan, China, India and Southeast Asia. This report focuses on the top players in global market, like: LycaMobile, Virgin Mobile, Truphone, TracFone, Boost Mobile, FRiENDi, Giffgaff, Lebara, FreedomPop, Freenet AG, UPP Wireless, GIV Mobile, KDDI Mobile, Polkomtel Plus, Tesco Mobile Ltd, Net10 Wireless, RedPocket Mobile, AirVoice Wireless

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The market is expected to register a CAGR of +7% over the forecast period of 2018-2023. Mobile Virtual Network Operator (MVNO) is a reseller of data and voice services with more flexible plans and lower prices. MVNOs do not have their own infrastructure and their own spectrum. However, MOUs (minutes of use) are purchased from mobile network operators (MNOs) and sold to customers. There are approximately 1,000 MVNOs globally, which together account for approximately 10% of all mobile users. Major MNOs such as T-Mobile and Verizon can select MVNOs to purchase large quantities of additional capacity at wholesale prices. If you do not use MVNO, you can reduce the risk of loss. The need for inexpensive service charges is increasing competition among service providers, who must consider MVNO as one of the options for virtual customers. The emergence of machine-to-machine (M2M), cloud and mobile money and increased data utilization are expected to increase demand for MVNOs.

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The number of cellular subscribers worldwide has increased significantly. This is because of the growing number of consumers choosing devices that provide connectivity. One of the main connectivity devices is a smartphone. Smartphones are very important because of their connectivity. The number of internationally used smartphones is relatively high compared to other connected devices. Because connected devices can not do without subscribing, the number of smartphones / mobile devices sold increases and mobile network subscriptions are high. According to Zenith's Mobile Ad Forecast 2017, the number of smartphone owners is expected to grow 7% in 2018. With the increasing adoption of connectivity devices and the increasing penetration of mobile devices, the number of mobile network subscribers is expected to increase significantly.
MVNO does not provide its own value-added services or assets through partnerships with mobile network operators in the reseller sector. Also, the reseller does not get ownership of the client, infrastructure, or SIM. Reseller will not give MVNO the ability to modify costs. MVNOs can earn revenue from their own brands. Resellers are responsible for partner MNOs and branding, sales, distribution and shared revenue costs. However, the service provider may modify the costs separately from the charges set by the MNO. The entire MVNO benefits from owning the infrastructure of network switching. Gross profit from resellers is estimated to be less than 10%. The profit for service providers is estimated to be close to 10% -15%. Resellers depend on MNOs for back-office support, so you can focus on branding and distribution. In this competitive environment, service providers are more focused on resellers to acquire more virtual customers, thus driving substantial reseller growth.