U.S. Mobile Virtual Network Operator (MVNO) Market Size, Share & Trends Analysis Report By Type (Discount, Telecom, M2M), By Operational Model, By End Use, And Segment Forecasts, 2018 - 2025

Industry Insights

The U.S. mobile virtual network operator (MVNO) market size was valued at USD 18.42 billion in 2017 and is anticipated to register a CAGR of 7.2% over the forecast period. The market is expected to witness significant traction owing to increasing number of mobile subscribers in the region and rising deployment of 4G and LTE networks.

Soaring usage of smartphones and tablets and availability of high-speed Internet connectivity has resulted in a surge in data applications such as Internet browsing and video streaming. The market is expected to register significant growth over the next few years owing to favorable government regulations that play a vital role in the improvement of the network infrastructure.

Support from mobile network operators for offering low-cost services and continuous developments in technologies such as cloud and M2M are further expected to offer lucrative growth opportunities in terms of revenue expansion. Growing adoption of Bring-Your-Own-Device (BYOD) or Bring-Your-Own-Technology (BYOT) at the workplace is a major trend observed in U.S., aiding market growth.

Development of compact, multifunctional, lightweight, and network-enabled devices and growing consumer preference for low-cost data plans are expected to provide opportunities for MVNO operators in the market. Increasing demand for services with lower subscription rates is leading to intense competition among service providers.

Lack of consumer awareness regarding various subscription plans and MVNO providers available in the market is expected to restrain subscriptions to a large extent. Dearth of operational expertise could result in errors such as misjudging the segment and offering a wrong product mix. This is also anticipated to deter market growth over the forecast period.

Type Insights

The discount segment is estimated to dominate the market as consumers primarily seek offers, coupons, and other additional benefits on talktime and data charges. The M2M segment is expected to witness steady growth over the coming years owing to rising adoption of data services and their integration with smartphones and other connected devices.

The media segment is also projected to register significant growth over the forecast period, attributed to rising online advertising and adoption of cloud-based workflows. The roaming segment offers travelers roaming services at lower prices. Increasing number of travelers in the country is expected to drive this segment.

Operational Model Insights

The full MVNO segment offers customers freedom of operator selection. The model offers complete control over all products and services offered in the market, along with flexibility in deploying and designing new services. The operational model also offers various roaming agreements as per a user demand, independent tariff bundles, and network switching infrastructure.

The service operator MVNO segment is expected to register the highest growth in the U.S. mobile virtual network operator (MVNO) market and this can be attributed to availability of various service platforms such as voicemail and missed call notification. Reseller MVNOs have their own service platform that provides consumers fast and efficient services. The segment is anticipated to witness steady growth over the forecast period.

End-use Insights

The consumer segment is projected to account for the largest market share in terms of revenue owing to advancements in features and capabilities of smartphones and high-speed mobile broadband. Smartphone is an enabler of social communication and entertainment and has been witnessing a surge in consumer spending.

Enterprise MVNO offers voice and data services and a few value-added services related to telecom expense, mobile application development, and mobile device management. Various industries such as transportation, utilities, warehousing, banking, finance and insurance, and healthcare are deploying call management solutions and this is expected to provide potential growth opportunities.

U.S. Mobile Virtual Network Operator (MVNO) Market Share Insights

Key players in the industry include 7-Eleven SpeakOut Wireless, AirVoice Wireless, Asahi Net, Boost Mobile LLC, and CJ HelloVision Co. Ltd. These operators are mainly focused on providing Business-to-Consumer (B2C) services. The models are deployed by automotive OEMs to provide connected car solutions. This provides potential opportunities for market players to expand their service portfolio and increase their revenue.

Enterprises in U.S. are focusing on advancing network infrastructure to provide high-speed data and uninterrupted voice calls. They are also catering to increasing demand from consumers for customized and uninterrupted real-time connectivity through various devices. Players in the IoT space have also been deploying MVNO capabilities to operate effectively and extend delivery of services to customers.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at a country level and provides an analysis of latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the U.S. mobile virtual network operator (MVNO) market report based on type, operational model, and end use:

• Type Outlook (Revenue, USD Billion, 2014 - 2025)

  • Business

  • Discount

  • M2M

  • Media

  • Migrant

  • Retail

  • Roaming

  • Telecom

• Operational Model Outlook (Revenue, USD Billion, 2014 - 2025)

  • Full

  • Reseller

  • Service Operator

• End-use Outlook (Revenue, USD Billion, 2014 - 2025)

  • Consumer

  • Enterprise