Mobile Virtual Network Operator (MVNO) Market Size

Mobile Virtual Network Operator Market Size

MVNO Market size exceeded USD 65 billion in 2020 and is poised to expand at over 9% CAGR from 2021 to 2027.

High demand for affordable mobile wireless services will boost the market growth. MVNOs are phone carriers that use one or more major wireless carriers or mobile networks to offer services. Mobile users switching to MVNOs to avail the benefits of high-quality services at lower costs. According to a survey conducted by Ting, in 2020, the average mobile virtual network operator bill is less than half of the average major carrier monthly bill. Around 91% of the customers who moved from a major carrier stated that their current service is at par or even better than the earlier. These virtual networks deliver more competitive offerings that translate to lower costs without compromising on service quality. Utilizing network capacity and infrastructure without owning it frees up significant costs that are then passed down to the customer. Significant cost savings with superior services are a key factor driving the market expansion.

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The coronavirus pandemic has hindered the market progression in the first half of 2020 attributed to the lockdowns imposed by government organizations. The market observed a temporary downfall due to disruptions in the supply chain coupled with delays in strategic initiatives such as mergers & acquisitions undertaken by major carriers and MVNOs. The industry regained traction in the second half of 2020, following relaxations in the lockdowns imposed. The market will witness growth in 2021 with consistent demand for high-quality telecom services from the corporate and academic sectors to enable seamless remote working techniques. The global screen time has increased owing to restrictions imposed on travel and public gatherings coupled with the growing popularity of video-on-demand (VOD) services. This factor will encourage partnerships between MNOs and MVNOs to capture a larger revenue share.