Mobile Virtual Network Operator Market: Introduction
Mobile virtual network operator (MVNO) represents service providers who resell wireless network communication services by using the infrastructure of a mobile network operator (MNO). The model gives benefit to both MVNO and MNO. MNO have extra unused network bandwidth which they provide to MVNO at a low price, and thus make optimum utilization of the unused network bandwidth. MVNO, in turn, offer these services to end users without having any support infrastructure and without paying the license fee to the government.
Mobile Virtual Network Operator Market: Market Dynamics
MVNO provide support to MNO by aiding in the increase in revenue by offering optimum utilization of network and by launching and marketing sub-brands. MVNO also provide benefits to end users by providing cheaper mobile options to different markets and aids in optimized resource allocation and improved quality of service to the end users, supported by improved service and follow which helps MNO to retain their customer base.
Supported by telecommunication spectrum increasing from 3G, 4G and now towards 5G, MVNO are expected to provide value-added services with higher speed to the customers. In addition, increasing mobile subscribers across the globe are expected to drive the market for the forecast period.
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Mobile Virtual Network Operator Market Segmentation
Segmentation of Mobile Virtual Network Operator Market on the basis of type:
Segmentation of Mobile Virtual Network Operator Market on the basis of model:
- Reseller Mobile Virtual Network Operator
- Full Mobile Virtual Network Operator
- Service Operator Mobile Virtual Network Operator
- Enhanced Service Mobile Virtual Network Operator
Segmentation of Mobile Virtual Network Operator Market on the basis of geography:
- North America (U.S., Canada)
- Latin America (Mexico, Brazil)
- Western Europe (Germany, Italy, France, U.K, Spain, Nordic countries, Belgium, Netherlands,Luxembourg)
- Eastern Europe (Poland, Russia)
- Asia-Pacific (China, India, ASEAN, Australia & New Zealand)
- The Middle East and Africa (GCC, South Africa, North Africa)
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On the basis of geography, mobile virtual network operator market can be segmented into seven key markets namely North America, Latin America, Western Europe, APAC, Japan, and Middle East & Africa. APAC is expected to dominate the market of mobile virtual network operator, supported by growing telecom industry in the region, higher GDP growth rate, and high population of countries such as India and China. APAC is expected to be followed by North America and Europe regions.
The increase in data and value-added services supported by increasing mobile subscribers across the globe is expected to drive the market of mobile virtual network operator. Intense competition among network operators and demand for cheaper mobile services is expected to support the demand. MVNO being able to provide customized services to end customers, is an advantage over MNO and thus will provide a competitive advantage over them. However, the lack of operational expertise among mobile virtual network operators will affect the demand.
Major players in the field of mobile virtual network operator include AT&T, International Business Machines Corporation (IBM), Verizon Communications Inc., Truphone Limited, Virgin Mobile USA, T-Mobile US Inc., TracFone Wireless, Inc. etc