Mobile virtual network operator (MVNO) refers to the mobile service providers that do not own licensed spectrum and cellular infrastructure to provide cellular service. Instead, MVNOs lease wireless services from pre-existing mobile network operator (MNO) and provide cellular services with their own brand name that is different from the MNOs.
MVNOs focus largely on customer, community and value added services. Technical flexibility is expected to be the major factor driving the growth of the global MVNO market during the forecast period. The growth in number of new telecom subscribers is expected to slow down considerably during the forecast period, owing to the maturing of telecom market. However, the growing demand of mobile internet in developing countries is expected to provide significant growth opportunities for MVNO vendors during the forecast period. The gross revenue of telecom industry in India was about $9.7 billion in 2015. More than 900 million telecom subscribers in the country are expected to lay new opportunities for the MVNO market in India in the coming years.
MVNOs works on a cost-efficient operational model and their operating cost is about 30% to 50% lower as compared to MNOs. MVNOs offer unique brand positioning and user centric value proposition to gain larger market share. Majority of MVNOs serves the emerging niche telecom markets through innovative distribution channels.
Globally, Western Europe was the major MVNO market globally in 2015. Over the past few years, the MVNO market has witnessed double digit penetration in Western Europe. Despite the presence of large number of MVNOs in North America, the penetration of MVNO has remained flat during the past few years. In Latin America and Asia-Pacific, despite fairly low average revenue per user (ARPU), the MVNO market is expected to grow significantly during the forecast period.
Some of the major companies operating in the global MVNO market include Verizon Communications Inc., AT&T Inc., CITIC Telecom International Holding Limited., T-Mobile AG, Telefonica S.A., Truphone Limited, Tracfone Wireless Inc., Lycamobile Group and Virgin Mobile.