MOBILE VIRTUAL NETWORK OPERATORS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

High dependence on host networks can hamper the market growth. MVNOs do not own any network infrastructure of their own and have to fully rely on the host network for providing telecom services to their customers. This high reliance on host networks for accessing spectrum, infrastructure and core network functions limits the capabilities of MVNOs. These have less control over service quality and customer experience as compared to MNOs as these cannot independently optimize or upgrade their networks. Any issues or congestion on the host networks directly impacts the services provided by MVNOs.

MVNOs find it difficult to rapidly introduce new technologies, plans or value-added services. With no infrastructure of their own, MVNOs have limited bargaining power to negotiate competitive agreements with MNO hosts. Host operators can dictate pricing, service-level agreements and other contract terms, which impacts the viability of MVNO business models. There are also geographic limitations as MVNOs can only offer services in areas covered by the host's network footprint. These constrained flexibility to expand into new regions independently.

Market Opportunities: Emergence of 5G technology

The emergence of 5G technology  revolutionizes the mobile industry by delivering faster speeds and higher network capacity as compared to previous generations of mobile technology. 5G provides speeds around 100 times faster than current 4G networks, and can support connections for millions of devices simultaneously. This increase in speed and capacity offers huge opportunities for mobile virtual network operators (MVNOs) to differentiate their offerings and target new customer segments. With 5G, MVNOs will be able to provide high-bandwidth connectivity required for emerging applications such as autonomous driving, augmented/virtual reality, industrial IoT, and telemedicine. This greater bandwidth allows MVNOs to explore innovative service plans tailored for specific usage cases.