Technology emerging services namely mobile money, cloud, and M2M are expected to have considerable impact on MVNO market growth

The global Mobile Virtual Network Operator (MVNO) market size is expected to grow at a CAGR of over 9%, with revenue exceeding USD 73 billion by 2022. Increasing subscriber base is expected to drive the MVNO market growth. Rising demand for efficient cellular network coupled with increasing demand for cheaper mobile services are vital factors estimated to propel the MVNO market size over the forecast period. Ascending competition in the industry is projected to impact market growth.

Technology emerging services namely mobile money, cloud, and M2M (machine to machine) are expected to have considerable impact on MVNO market growth. Proliferating data usage rates and increasing use of smartphones is anticipated to fuel market demand. Increasing operational cost and growing investments accompanied by descending ARPU (average revenue per user) are anticipated to surge growth.

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Telecom regulatory authorities also provide tremendous opportunities for new players to enter the market. Emerging technologies such as LTE & 4G are expected to offer promising channel to the new market entrants. Differential services offered by MVNOs are expected to provide considerable business opportunities and thus assist in avoiding direct competition. MVNOs provide huge potential opportunities to MNOs by boosting network utilization and furnish wholesale deals thus facilitate them in creating their own MVNOs. Inadequate operational expertise and tenacious competition from MNOs serve as key restraints to market.

The mobile virtual network operator market can be segmented based on the type of service such as business, discount, ethnic, lifestyle and advertising. Business MVNOs deals with providing customized service to business organizations. Discount system serves with reduced mobile communication rates. Ethnic system is similar to discount system; it offers low calling rates to specific ethnic communities in order to communicate to their home countries. Advertising systems provide mark down call rates or limited free calls, free internet and free text messages and other services for promotion purposes. Lifestyle system targets on niche markets in order to provide custom made services.

Asia Pacific including India & China is expected to witness significant growth owing to increasing number of subscribers and elevating telecom regulations. North America is expected to resemble moderate growth owing to rigid market situation. Europe MVNO market along with the Middle East is expected to exhibit considerable growth owing to changing regulatory framework in the region.

Key industry participants with substantial MVNO market share encapsulate Tracfone, Lyca Mobile, Tesco, Virgin Mobile, Lebara some other industry participants include Giffgaff, Poste Mobile and TalkMob.

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