Mobile Virtual Network Operator (MVNO) Market Size, Share & Trends Report

Mobile Virtual Network Operator (MVNO) Market Size, Share & Trends Analysis Report By Country (U.S., Canada, UK, Germany, Italy, France, Spain, Netherlands, Australia), By Region, And Segment Forecasts, 2012 - 2020

  • Published Date: Mar, 2017
  • Base Year for Estimate: 2014
  • Report ID: 978-1-68038-360-7
  • Format: Electronic (PDF)
  • Historical Data: 2012 - 2020
  • Number of Pages: 110

Industry Insights

The global Mobile Virtual Network Operator (MVNO) market size was valued at USD 42.62 billion in 2014 and is anticipated to witness significant growth over the forecast period. Data and value added services such as live streaming and M-commerce based services are expected to drive the market growth over the next six years.

The increasing smartphone penetration across the globe and the subsequent rise in mobile subscriber base are presumed to contribute remarkably to the industry growth. The mobile virtual network operators cater to various customer needs without possessing full infrastructure or license for using radio frequencies.

U.S. mobile virtual network operator market

The presence of a large number of market players has led to increased competition among the service providers. Consecutively, this has led the players to offer mobile services at cheaper rates, which is expected to strengthen the market growth. The emergence of groundbreaking services such as machine to machine transaction and mobile money is expected to impel growth in the market.

Technological advancements such as cloud and M2M are projected to propel the market demand over the next six years. MVNO’s are expected to provide cheaper and convenient mobility options for industries such as lifestyle, entertainment, and productivity to increase revenue generation.

Increasing network speed and use of advanced devices enable growth of data applications such as internet browsing and video streaming. Significant investments are made to improve network coverage and growth in Mobile Broadband (MBB) connections. MVNO model is considered cost-effective and time-efficient to enter the telecom market to benefit the customers.

The Mobile Network Operators (MNOs) are making substantial investments in upgrading and maintaining the existing infrastructure. However, this has resulted in high operational costs and declining average revenue per user for MNO. Moreover, the lack of operational expertise is expected to deter the market growth.

MNOs offer various service plans and products for different markets having fewer users, which leads to expensive and inefficient operational and business support systems. The cost of acquiring and retaining new customers is comparatively high, particularly for fixed term contracts. MVNOs can help in overcoming these issues and help in optimizing resource allocation and improving the quality of service (QoS), which contributes to the global mobile market. Moreover, Access to voice and data services at low cost is expected to be the key interest for customers.

The emergence of MVNO is the result of regulatory interventions to lower the barriers for market entry and eventually increase competition and strategic decisions by MNOs. MNOs have their own mobile licenses, infrastructure, and customer relationships with their end users, and are capable of handling network routing; they generally have roaming deals with foreign counterparts. However, with the aim of expanding their existing customers base and operations, MNOs collaborate with MVNOs and target niche segments.

To avoid direct competition with MNO’s, MVNO’s are focusing on offering differentiated services. MVNOs are emphasizing on capitalizing the opportunities related to roaming services by providing special services to tourists and youth. MVNO’s aid in increasing revenue for MNO’s by providing wholesale deals, increasing network utilization, and creating their MVNO’s by launching sub-brands.

The partnership between MNO and the MVNO majorly depends on brand reputation, distribution network, marketing strategies and access to market segments. The MVNO model is shifting from voice to a more data-centric experience. MVNOs across the globe are looking for data-capable smartphones as a way to expand their businesses.

Regional Insights

Asia Pacific and MEA are projected to experience significant growth over the forecast period. The Asia Pacific regional market was valued at USD 3.59 billion in 2014. The growth in region can be attributed to the phenomenal growth in the regional telecom services industry.

The emerging economies in the region such as India, Vietnam, Myanmar, and China are putting sizable efforts into the expansion and modernization of their telecommunication services. South East Asian countries such as Thailand, Singapore, and the Philippines are further presumed to contribute substantially to the regional market expansion over the forecast period.

Countries with advanced cellular networks such as Japan, Malaysia, and Australia are expected to play a major role in the market expansion in the Asia Pacific region. For instance, in Japan, MVNO’s offer services such as remote management of vending machines, online gaming, M2M, and surveillance, among others. MVNO’s further provide voice-controlled services in security applications and patient monitoring in the healthcare industry.

Europe and North America are projected to grow significantly over the forecast period. The growth can be attributed to a favorable regulatory framework which is expected to play a crucial role in developing MVNO market. However, aggressive pricing strategies followed by MVNO have cannibalized growth opportunities significantly in the region specifically in Spain and Austria.

Mobile virtual network operator market

Countries such as the UK, Germany, and Netherlands are projected to impact regional growth in a positive manner over the forecast period. Data services are expected to be the key services for regional growth over the forecast period. Favorable regulatory policies and active MNO support is anticipated to drive the growth in the Latin America and MEA regions.

MVNO market Share Insights

Geographic expansion remains the key focus of all the players operating in the market. Prominent players dominating the market are Lebara Mobile, Lyca Mobile, TalkMob, Giffgaff, Poste Mobile, Virgin Mobile, and Tracfone. Virgin Mobile is present in various countries such as the U.S., UK, Australia, Canada, Poland, Mexico, France, and Saudi Arabia. It offers a broad range of services such as digital cable recorders, TV-on-demand, broadband, cable, television and mobile and converged solutions.

In August 2012, Virgin TV was launched by Virgin, which enabled users to stream up to 90 live TV channels using mobile devices. Virgin Mobile and Tracfone U.S.A. are the two major MVNO’s in the U.S. Apple, Inc. announced its plans to launch its MVNO service in the U.S. and has tied up with many MNO’s. Industry players are adopting various strategic initiatives such as mergers and acquisitions, partnerships, integrating with other firms for gaining a competitive edge and deploying better services.

Report Scope



Base year for estimation


Actual estimates/Historical data

2012 - 2020

Forecast period

2015 - 2020

Market representation

Revenue in USD Billion, Subscriber in Million, CAGR from 2015 to 2020

Regional scope

North America, Europe, Asia Pacific, Latin America, and MEA

Country scope

U.S., Canada, UK, Germany, Italy, France, Spain, Netherlands, Australia, Japan, Malaysia, Singapore, Hong Kong, Brazil, Mexico, and Colombia

Report coverage

Revenue forecast, subscriber forecast, company ranking, competitive landscape, growth factors, and trends

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Segments Covered in the Report

This report forecasts revenue and subscriber growth at the global, regional, and country levels and provides an analysis on the industry trends from 2012 to 2020. For the purpose of this study, Grand View Research has segmented the global MVNO market on the basis of regions:

  • Regional Outlook (Revenue, USD Million; Subscriber, Million; 2012 - 2020)

    • North America

      •  U.S.

      • Canada

    • Europe

      • UK

      • Germany

      • France

      • Italy

      • Spain

      • Netherlands

    • AsiaPacific

      • Australia

      • Japan

      • Malaysia

      • Singapore

      • Hong Kong

    • Latin America

      • Brazil

      • Mexico

      • Colombia

    • Middle East & Africa (MEA)

      • Africa

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