Market Trends of Mobile Virtual Network Operator (MVNO) Industry
This section covers the major market trends shaping the Mobile Virtual Network Operator Market according to our research experts:
Consumer Segment is Expected to Hold a Significant Market Share
- This is the primary and the most focused segment among MVNOs. The growing number of single mobile subscribers and the increasing mobile penetration in emerging economies are the major factors fuelling the segment's growth.
- The market's prominent players provide wireless services at competitive costs worldwide. For instance, in July 2022, Boost Mobile introduced Connected Car, a turnkey solution for mobile internet at flexible prices. With Boost, anyone can get Wi-Fi in their automobile. Connect multiple tablets, computers, and phones in the consumer car and take them everywhere. During long road journeys, they can now stream their favorite shows and movies, surf the web and listen to their favorite podcasts and songs without using their cell phone's data plan. The Connected Car plan users get a remote Wi-Fi hotspot and mobile access to 5GB of 4G LTE data.
- Moreover, in August 2022, Verizon announced that college students may now get Fios, a lightning-fast fiber optic network, for as little as USD 20 per month with AutoPay and specific 5G mobile plans. As colleges and institutions continue to provide students with virtual options for lectures - and some students admit to staying up until the wee hours of the morning on term papers - reliable and affordable home internet should not be an issue.
- Traditionally, B2C or consumer segment dominated over the B2B segment regarding innovation and pricing. Billing and managing a fleet of devices is much more difficult than simple consumer service. Due to convenience and profit margins, MVNOs prefer investing in the consumer segment.
- The growing adoption of e-SIM is also expected to expand the scope of the segment. The e-SIM, with the remote provisioning standards created by the GSMA, provides simplicity and flexibility to MVNOs' vendors.
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Asia-Pacific is Expected to Hold a Major Market Share
- The Asia-Pacific area accounts for a significant market share, as the region has always remained at the forefront in adopting technological advancements like 5G technology, connected mobile devices, and smartphone penetration, amongst others.
- The Asia-Pacific is a significant smartphone market, owing to the region's rapidly increasing telecom sector and extensive client base. Furthermore, the region is spending more on wireless network services. Countries like India, Japan, Australia, Singapore, and South Korea are expanding their investments in the growth of their domestic telecom markets, which are likely to boost the MVNO market demand across the region.
- China's mobile market has planned to open up to commercial licenses for MVNOs after the Ministry of Industry and Information and Technology (MIIT) launched a public consultation seeking industry input and feedback on the government's proposal to allow commercial MVNO licenses, including foreign-invested firms.
- The number of mobile phone base stations has continued to increase, and the construction of 5G networks has made steady progress. According to Huang Chengqing, vice president of the Internet Society of China, China will have 9.96 million mobile phone base stations by December 2021, and the number of mobile phone users is also rapidly increasing. By 2021, China's overall mobile phone user population reached 1.643 billion, with 355 million using 5G phones. These trends are expected to boost the revenues of MVNOs in China during the forecast period.
- The increased demand from developing countries, such as India and Indonesia, where smartphones are increasingly accessing rural regions as local governments push for digital and mobile economies, is likely to drive demand for smartphones at entry-level price points. For example, the Government of India's Digital India program is a flagship program aiming to transform the country into a digitally enabled society.
- For instance, in July 2021, with the Vivo Y72, Vivo Communication Technology Co. Ltd increased its 5G offering in India. At INR 20,990, the Y72 provides a superior smartphone experience with its powerful features and a visibly unique design in its category. The phone has 8GB+4GB extendable RAM, which keeps it from choking while multitasking.
- The Chinese government has also been pushing the development of its 5G industry, favoring its own companies, such as Huawei and ZTE, which make equipment necessary for the technology to work. Moreover, according to GSMA, there will be 807 million 5G connections by 2025. China is expected to account for the most significant number of 5G connections globally in 2025.
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