DUBLIN, May 16, 2019 /PRNewswire/ -- The "Mobile Virtual Network Operator (MVNO) Market (2013-2023)" report has been added to ResearchAndMarkets.com's offering.
The mobile virtual network operator (MVNO) market (in terms of revenue generation) in 2023 will be $98.0 billion
The telecom market in developed economies has almost matured, which means that the number of telephone subscribers will grow at a reduced pace. But, this is not expected to ill-affect the market, as the rising requirement for mobile internet will sustain the market players.
On segmenting by type, telecom, discount, business, media/entertainment, migrant, retail, roaming, and cellular M2M would be the various MVNO market categories. Among these, the roaming category is expected to be the fastest growing during the forecast period because of the reasonable roaming tariffs being provided by telecom firms to urge customers to travel more; this, in turn, is projected to fuel the demand for roaming offers.
Further, the market has been subdivided into postpaid and prepaid on segmenting by category. While the postpaid category is estimated to lead the mobile virtual network operator market in 2018 with about 52.0% revenue share, the prepaid category is expected grow faster during the forecast period. The reason for this development would be the increasing mobile penetration in Africa, Latin America (LATAM), and Asia-Pacific (APAC), where prepaid plans are preferred due to their fixed monthly rentals regardless of the actual usage.
The growth of the domain primarily depends on how capable the marketing and distribution strategies of local MVNOs in a particular region are. For instance, established players benefit by optimally utilizing marketing assets, including channel infrastructure, customer database, and media and telecom, of mobile network operators (MNO). Value proposition and brand positioning strategy to target customers, such as those of a particular ethnic group, also decide how much a firm will grow. Therefore, compelling marketing campaigns and identification of emerging telecom markets are expected to boost the mobile virtual network operator market in the future.
Developing countries are already providing market players with immense growth opportunities. For instance, the Chinese telecom space, with over 1 billion subscribers, opened to MVNOS in 2014. Similarly, players are expected to gain significantly from the opening of the telecom market in India. APAC is projected to become the largest market for MVNOs by 2021, and considering this, established players are already working toward strengthening their hold.
Further, local MVNO market players are planning on utilizing commercial models, specifically designed for APAC, in a bid to enhance their operational scale.
The key players in the domain currently are Verizon Communications Inc., AT&T Inc., CITIC Telecom International Holding Limited, T-Mobile AG, Telefonica S.A., Truphone Limited, Tracfone Wireless Inc., Virgin Mobile, Red Pocket, Inc., Lycamobile Group, Sierra Wireless, Inc., and America Movil S.A.B. de C.V.
Market Dynamics
Trends
- Focus on value added services instead of price differentiation
- Increasing collaboration between MNOs and MVNOs
Drivers
- Segment-targeted pricing strategies and innovative distribution
- Rapid growth of triple play services in developing countries
- Surge in penetration of mobile devices and demand for low cost mobile services across the globe
Restraints
- Decrease in ARPU causing hindrance for MVNO market growth
- Unclear telecom regulations in emerging market
Opportunities
- Increasing mobile subscribers in developing countries
- Technological advancement in telecommunication across the globe
Companies Mentioned
- AT&T Inc.
- Verizon Communication Inc
- T-Mobile USA, Inc.
- Lycamobile Group
- CITIC Telecom International Holding Limited
- Amrica Mvil, S.A.B de C.V.
- Sierra Wireless Inc.
- Red Pocket Inc.
- Truphone Limited
- Telefnica, S.A.
- Virgin Media Inc.
- TracFone Wireless Inc.
For more information about this report visit https://www.researchandmarkets.com/r/hj36tu
Research and Markets also offers Custom Research services providing focused, comprehensive and tailored research.
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SOURCE Research and Markets
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