MVNO (Mobile Virtual Network Operators) increasing market and its impacts on communications industry

Technologic progress is one of the main drivers of change in the communications industry, and the era of mobile services is evolving for both the B2B market and the consumer market. The increased penetration of mobile devices combined with the technological factor is strengthening the scenario for MVNO (Mobile Virtual Network Operators) services, especially in markets such as the United States and Europe. 

On the other hand, consumers are already used to comparing the different communication services available to know which best suits their needs before acquiring it, and if they are not satisfied with their choice, they can easily cancel or change it, which significantly increases the churn levels in traditional operators. 

This highly competitive dynamic helps to reduce service costs for the final consumer, which consequently increases demand and the number of resources invested. According to Adroit Market Research, the MVNO market will reach USD 112.0 billion by 2025 due to this growth, and Europe is the region that stands out the most in the results, since it accounts for 60% of the total existing MVNOs. 

Growth opportunities as a B2B MVNO

 

Technological development is also the driving factor for the growth of MVNOs as a B2B service provider. The first market window exploited by this business model was the consumer market and its different niches, like young users or foreign workers, for example. However, with the enhancement of the IoT (Internet of Things) ecosystem and 5G technology, there are more opportunities for MVNOs to position as service provider to other companies.  

One of the reasons why companies are seeking to extend their services to meet the demands of other companies is the increasing competitiveness of the direct-to-consumer services market. The evolution in IoT paves the way for the packaging of end-to-end services for enterprises, which can include the provision of devices, support services, and even applications. 

At the same time, the growing need for mobile services will also reach solution-seeking individuals as market professionals, which will demand consumer- and business-focused solutions at the same time, such as data security and privacy solutions

Addition of non-telecom companies to MVNO business models 

 

The Virtual Operators Model has enabled a new range of companies to integrate into the telecom ecosystem without necessarily being part of that industry. Companies in the automotive industry, such as Audi, with 5G connected cars, for example, the logistic industry, among others, is becoming part of the MVNO era to offer direct-to-consumer communication services, especially outside of large urban centers, where traditional telecommunications in some cases do not reach. These players view communication services as an opportunity to generate revenue. 

5G technology is helping to make this a reality for more companies due to its flexibility. The new network generation allows companies, for example, to use a part of the public network in a way that is dedicated to their business model thanks to Network-Slicing. 

Business support systems 
 

The entry of new companies into the MVNO ecosystem does not guarantee that they will have the necessary knowledge to manage systems that are usually managed by telecom services specialists. This scenario opens opportunities for traditional operators to offer specialized system management solutions to companies in other sectors. These, in turn, can reduce costs and increase effectiveness in implementing solutions by partnering with experts.  

However, even though this is a favorable scenario, flexibility is needed to meet the demands of other sectors, such as the automotive sector, for example. Therefore, cloud-native solutions can drastically reduce friction in implementing MVNE (Mobile Virtual Network Enablers) platforms on demand.  

Want to know more about how Sicap’s solutions are helping MVNOs in their process of cost reduction, security, and effectiveness? Download our eBooks with the details of our solutions and Request a demo today. 

About Sicap

 

Sicap is a global telecommunication solution provider enabling Mobile Network Operators and Mobile Virtual Network Operators (MVNOs) to deliver an all-encompassing customer experience to make the mobile world more profitable, manageable, and secure.  

Founded 20 years ago as a Swisscom spin-off, Sicap now works with 80 mobile operators and MVNOs (mobile virtual network operators) in 76 countries. Its international team is available worldwide to ensure excellent customer service.  

Today Sicap is part of Lumine. Lumine Group is a Portfolio of Volaris Group, a subsidiary of Constellation Software Inc, a global multi-billion-dollar company based in Canada and listed on the Toronto stock exchange.  

Sicap solutions are built on its superior expertise in mobile device intelligence, SIM and device management, and big data analytics. The solutions are grouped into three areas: Device and SIM Management, Customer Insight and Engagement, and Mobile Security.  

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