There are a large number of mobile network service providers around the world. However, with the rising digitalisation, MVNO’s got more attractive because of their low prices as compared to mobile network operators (MNO).
That is why MVNO’s are also trying to explore new possibilities, using new technologies and some other developments to enhance customers experience.
There are many global players involved in driving the MVNOs market. Some of them include Allvoi Wireless, Altice Mobile, Black Wireless, Pix Wireless, CUniq, Gamma Telecom, Gemini Mobile, HP Mobile Connect, and Vivio.
Vodafone and Virgin Media made a partnership for five years in November 2019, under which Virgin Media’s MVNO Virgin Mobile will take its services from Vodafone. Currently, Virgin Mobile has a deal of using BT services, which will end by 2021. Once the deal terms end, Virgin Mobile will transfer to Vodafone.
According to the new partnership, Virgin Mobile also has plans to launch 5G services with Vodafone before the transition from BT.
Mobile virtual network operators (MVNOs) do not have their network infrastructure to provide any services. So MVNOs take their mobile network services from MNOs, usually at wholesale rates.
MVNOs then provide these services to its customers at low prices. They use their billing system, customer service, promotions and sales, independent of any network operator.
MVNOs first started during the 1990s, where the European telecom market was less regulated, had new frameworks and also a rapid increase in mobile devices.
MVNOs also give benefits to network operators; for example, T-Mobile and Verizon Wireless sell their services to MVNOs because they have excess capacities on their networks.
As MVNOs do not have any extra costs, spectrum licence and infrastructure, so they heavily spend on marketing to attract more customers by providing affordable prices, which is also the driver behind the increase in MVNOs market share. In various cases, the customer service, sales and network infrastructure are handled by mobile virtual network enabler (MVNE).
The US is considered as the largest market in terms of number of MVNOs. It had about 139 MVNOs in 2018, followed by Germany with a total of 135 MVNOs in 2018.
The global MVNOs average market value in 2018 was about US$ 60 billion and is forecasted to reach between US$ 95 billion and US$ 120 billion.
The market size is to be driven by more investment, reductions in prices, rise in digital devices, and competition between different network providers.