A mobile virtual network operator (MVNO) is an entity that does not have a licensed spectrum. But it resells wireless services through business arrangements with regular telecom operator networks. Generally, MVNOs don’t have their own infrastructure. They provide data & voice services to users via paid-up subscription agreements. MVNOs also control marketing, customer care, billing, & SIM (Subscriber Identity Module) card aspects.
Subscribers of the mobile virtual network operator (MVNO) market would grow at a CAGR of 10.6% during 2014 to 2020 (forecast period). They should reach 299 million by 2020. This may be credited to higher mobile subscribers and demand for data services. Emergent technologies like M2M (machine-to-machine), LTE (long term evolution), 4G infrastructure, and mobile money prove favorable for the market.
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Competition leads to cheaper mobile services, boosting the sales of smart phones. MNOs (Mobile Network Operators) face challenges in terms of huge investments & operational costs, thus decreasing the ARPU (average revenue per customer). This could also benefit the market.
However, MNOs provide stiff competition to MVNOs. MVNOs often lack the operational expertise to sustain and grow. They evade competition by differentiating their services and targeting young users, migrants, retail sectors, & roaming services.
Optimum utilization of network infrastructures is the key motivation for MNOs to permit MVNOs on their networks. Moreover, MNOs operate as MVNOs in regions that lack frequency spectrum. Lower tariffs are the key obstacle for the mobile virtual network operator (MVNO) market.
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Branded resellers, thin, intermediate, and full are the market’s business models. The regional segments comprise North America, Asia Pacific, Europe, Middle East & Africa (MEA), and Latin America. Europe, with 41% revenues, dominated the market in 2013. Its supportive regulatory environment positively affects the region.
MEA is an upcoming market. It is experiencing decent expansion. Asia Pacific is projected to generate high demand owing to economic growth in China, Vietnam, and Myanmar. Higher regional inter & intra country migration rates can create MVNO opportunities. Data services are could drive various regions.
Leading players in the worldwide mobile virtual network operator (MVNO) market comprise Lebara Mobile, Virgin Mobile, Lyca Mobile, and Tesco. U.S. is dominated by Virgin Mobile and Tracfone. Drillisch Telecom is the foremost vendor of Germany. Players aim at providing wide ranging & affordable services to succeed.
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