Mobile Virtual Network Operator (MVNO) Market Analysis

Mobile Virtual Network Operator Market Analysis

The UK full MVNO market is projected to showcase 12% growth rate through 2027. The UK is a mature mobile market and has a considerable number of virtual network operators including GiffGaff, Lyca Mobile, Lebara, Virgin Mobile, Truphone, Tesco Mobile, and BT Mobile. The full MVNO provider is accountable for the entire operation, customer-related services, and data, thus providing complete control over all the products & services. The provider also has the flexibility to design & deploy new services. In this business model, the operator has full control over the entire core infrastructure including GGSN for data, HSS/HLR for services, GMSC for voice and the system, and processes for billing.
 

As a full MVNO, companies can create and control their core network with their proprietary infrastructure, reducing reliance on the host MNO and considerably increasing margins while connecting with multiple host MNOs. It can manage call flows, SIM cards, and data flows while also negotiating commercial contracts with other mobile operators. This is the most complete business model and is ideally suitable for large mobile projects. Strong control over the entire core network infrastructure helps companies to ensure and control the quality of services offered. The capacity to integrate with multiple mobile operators reduces restrictions on adhering to a single operator. Several light MVNOs focus on converting into full wireless virtual network operators, which will support the industry growth.
 

Asia Pacific MVNO market is estimated to attain a CAGR of over 10% during 2021 to 2027, which is credited to the rising smartphone ownership rates. The data usage per wireless data subscriber was around 11 BG per month in India in 2020. The country aims to produce mobile phones worth USD 190 billion by 2025. According to the India Brand Equity Foundation, India’s 5G subscriptions are set to reach around 350 million by 2026. Similarly, the internet penetration in South Korea crossed 97% as of January 2021. The expanding smartphone market coupled with the growing demand for cost-effective telecom services will support the industry expansion. The expanding 5G market will encourage mobile virtual network operators in the region to solidify their industry presence to offer affordable wireless telecom services.