US Mobile Virtual Network Operator (MVNO) Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 13.72 Billion |
| Market Size (2029) | USD 16.94 Billion |
| CAGR (2024 - 2029) | 4.31 % |
| Market Concentration | Medium |
Major Players-Market-ML.webp)
*Disclaimer: Major Players sorted in no particular order |
US Mobile Virtual Network Operator (MVNO) Market Analysis
The US Mobile Virtual Network Operator Market size is estimated at USD 13.72 billion in 2024, and is expected to reach USD 16.94 billion by 2029, growing at a CAGR of 4.31% during the forecast period (2024-2029).
- Mobile virtual network operators (MVNOs) offer mobile communication services by leasing network access from established mobile network operators (MNOs) rather than owning physical infrastructure like cell towers and network equipment. 5G MVNO technology, known for its superior data speeds, minimal latency, and heightened connectivity, offers MVNOs a robust foundation to expand their services beyond traditional voice and data. This has led to the emergence of Enterprise MVNOs, with sectors like logistics, manufacturing, and healthcare spearheading the trend by establishing and managing their private networks.
- Similarly, eSIM technology benefits MVNOs and mobile operators. With eSIM, MVNOs can easily swap carriers on a single device without a physical SIM card. This can significantly reduce the cost and time required to activate new mobile services. eSIM also allows MVNOs to offer new flexible services, such as temporary local operator connectivity or specialized services for specific verticals, such as the Internet of connected devices. For instance, in March 2024, Vodafone Idea, a major telecom operator known by its short form VI, launched services for its prepaid users.
- Artificial intelligence can potentially benefit MVNOs in several ways. One potential application is to improve customer personalization and next-best actions through the use of AI and machine learning algorithms. This could help MVNOs tailor their services to individual customer preferences and needs, leading to increased customer satisfaction and loyalty. Additionally, AI could help optimize wireless resource allocation, which is particularly important in the highly competitive and regulated telecom industry where MVNOs operate. AI algorithms could also predict maintenance needs and automate certain processes, such as customer service chatbots. Overall, AI has the potential to enable MVNOs to improve their efficiency, reduce costs, and enhance the customer experience. Trends like these are expected to drive the studied market.
- As the country embraces digital transformation, trends like the rise of connected devices, machine-to-machine communication, cloud computing, the Internet of Things (IoT), Industry 4.0, and edge computing underscore the urgent need for high-speed, efficient networks. In response, MVNOs are increasingly focusing on IoT, M2M, and global connectivity. These MVNOs are set to enhance connectivity solutions, seamlessly integrating them with devices and services spanning vehicles, medical instruments, wearables, and industrial machinery.
- Rising government pressure and increasing competition are forcing telecom vendors to reduce tariff prices to stay in the market. Thus, the telecom sector is becoming highly price sensitive. Most MVNOs leverage the low-cost model to gain customers. This market has a low profit margin because MVNOs offer consumers cheaper rates by renting spectrum from major carriers. They function as wholesalers who purchase bandwidth in large quantities from extensive carrier networks and sell at a discount to consumers.
US Mobile Virtual Network Operator (MVNO) Market Trends
The Reseller Segment is Expected to Hold a Significant Share in the Market
- Resellers act as intermediaries, selling services from a provider or operator while adhering to a standard service-level agreement (SLA). The overall service provider or operator issues a single bill. A reseller MVNO can operate under its own brand or co-brand with an MNO. Typically, these branded resellers come with established brand distribution channels or a substantial existing customer base, which they can leverage for sales. The mobile reseller model caters to companies aiming to offer customized mobile communication tariffs to their clientele. In contrast, the branded reseller model suits companies looking to enhance their brand with mobile communication services.
- Resellers are typically the most readily accepted type of MVNO by mobile network operators (MNOs), as MNOs retain control over most processes. This model allows MVNOs the potential to offer their own value-added services (VAS). With limited liability, this market segment presents fewer risks for MVNOs, but it also curtails revenue opportunities due to the lack of operational control. In this model, MVNOs partner with MNOs without holding any assets. This means they do not own the client, the infrastructure, or the SIM, nor do they have the ability to set prices. However, MVNOs do maintain control over distribution and branding functionalities.
- Reseller MVNOs benefit from quicker market entry and lower startup costs, as they rely on network operators to manage most infrastructure needs. However, these resellers still bear the expenses for marketing, sales, and distribution. With the increasing adoption of 4G and 5G technologies, the reseller model is poised to seize significant opportunities in the coming years. For example, Venn Mobile, a newly launched MVNO, operates under Teltik, a reseller aligned with T-Mobile's business strategy. Venn Mobile offers a monthly plan priced at USD 30, featuring unlimited talk, text, data, and a 50GB mobile hotspot allowance.
- Additionally, technological advancements have also played a crucial role. The proliferation of smartphones and the increasing mobile internet penetration have created fertile ground for MVNOs to offer innovative data-centric services. Also, the rollout of 4G and the anticipated expansion of 5G networks provide opportunities for reseller MVNOs to deliver high-speed data services without heavy infrastructure investments. Such initiatives are driving the market positively. According to VIAVISION, as of 2023, 5G network access was available in 503 cities in the United States, the most of any country globally.
- The latest wave of MVNOs is prioritizing the launch and upkeep of unique service capabilities. These capabilities blend a cloud-centric approach, API-driven communication service integration, and predominantly web-based self-care options, all while relying minimally on traditional communications infrastructure. By adopting lean and agile business processes, these MVNOs are not only competing with established operators but are also enhancing customer satisfaction and introducing price differentiation. They are leveraging PaaS for functions like billing, CRM integration, product catalog management, rating, invoicing, and bill formatting. This choice is strategic because these applications operate without direct end-user intervention and benefit from asynchronous background processing.
The Consumer Segment is Expected to Hold a Significant Share in the Market
- One of the main factors driving the growth of MVNOs in the United States is the increasing demand for low-cost mobile services. Many consumers in the country are price-sensitive and are looking for affordable alternatives to traditional mobile operators. MVNOs have responded to this demand by offering competitive pricing and flexible plans catering to different segments.
- Another factor contributing to the growth of MVNOs in the United States is the increasing availability of mobile internet services. According to the report by GSMA, by 2025, the United States is expected to have 252 million 5G connections. Further, by 2030, 5G connections are expected to account for 95% of all US connections. As the demand increases, more consumers seek affordable and reliable mobile internet services. MVNOs have responded to this demand by offering various plans and packages catering to different needs and budgets. Hence, consumers actively seek MVNO services in the country, which drives the demand.
- Further, the growth of MVNOs in the country is also driven by the increasing demand for data services. As more consumers in the United States use their mobile devices to access the internet, social media, and streaming services, MVNOs are responding by offering a range of data plans and packages that cater to different needs and budgets. According to Ericsson, there were an estimated 314.75 million 5G mobile subscriptions in North America in 2024, which is predicted to increase to 432.91 million by 2029.
- Consumers increasingly prioritize brands that cater directly to their needs for internet connectivity. In response, MVNOs tailor packages with varied data quality of service and 5G options, aligning closely with customer demands. This strategic move is expected to drive the growth of the market. Additionally, the diverse pricing strategies adopted by MVNOs are projected to further bolster the consumer segment's expansion during the forecast period.
- The demand for connected devices has surged as industries undergo radical technological transformations. The IoT and automotive sectors are leading the charge, presenting substantial opportunities for MVNOs. All four major telecom operators in the United States have invested heavily in developing IoT and NB-IoT infrastructures, with Verizon investing approximately USD 1 billion. The MVNO landscape is on the brink of a significant shift, especially with tech giants like Google making their foray into the market. These tech giants are leveraging the MVNO model to enhance the value of their current offerings.
US Mobile Virtual Network Operator Industry Overview
The US MVNO market is semi-consolidated, with major players like Verizon Communications Inc., AT&T Corporation, T-Mobile USA Inc., Cricket Wireless LLC, and Xfinity Mobile (Comcast Corporation). Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
- July 2024: Mediacom Communications rolled out its new mobile product in all its markets, partnering with Verizon as its MVNO. This launch follows Mediacom's two-month testing phase, during which it trialed the mobile service with its employees and selected Reach for back-office provisioning and billing. Despite being a member of the National Content & Technology Cooperative (NCTC), Mediacom chose to pursue its mobile venture independently, bypassing the co-op's existing agreements with Reach and AT&T.
- April 2024: Cape, a trailblazer in privacy-centric mobile services, secured USD 61 million in funding, spearheaded by A* and Andreessen Horowitz. Other contributors to this financing round include XYZ Ventures, ex/ante, Costanoa Ventures, Point72 Ventures, Forward Deployed VC, and Karman Ventures. With this influx of capital, Cape aims to establish a nationwide mobile network. This network promises premium wireless coverage while uniquely ensuring the confidentiality of personal identifiers, such as names, numbers, and locations. This funding announcement coincides with heightened concerns from top US officials regarding the cybersecurity lapses of major telecommunications carriers, which potentially expose them to foreign threats.
US Mobile Virtual Network Operator (MVNO) Market Leaders
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Verizon Communications Inc.
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AT&T Corporation
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T-Mobile USA, INC.
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Cricket Wireless LLC.
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Xfinity Mobile (Comcast Corporation)
*Disclaimer: Major Players sorted in no particular order
US Mobile Virtual Network Operator (MVNO) Market News
- June 2024: TDS Telecommunications, a subsidiary of Telephone and Data Systems Inc., is set to roll out its nationwide mobile virtual network operator (MVNO) service, TDS Mobile, in collaboration with the National Content & Technology Cooperative (NCTC). Initially, TDS Mobile will cater to TDS Telecom’s internet customers across various service areas. Eligible customers will soon be informed about the coverage, which a national 5G mobile network will support. TDS Telecommunications serves 1.2 million connections, providing high-speed internet, TV entertainment, and phone services to diverse communities, ranging from small to mid-sized urban and suburban areas to rural locales.
- April 2024: Comcast unveiled a no-contract brand, introducing a budget-friendly, lower-speed broadband service. This move comes in response to the rising popularity of 5G-based fixed-wireless access (FWA) services, recently rolled out by select mobile network operators (MNOs). Dubbed "Now," this new offering aligns with Comcast's existing no-contract services, which cater to affordable internet, mobile, and streaming TV needs. The package boasts a fixed broadband service leveraging Comcast's established cable internet infrastructure, fresh cellular rate plans through its MVNO agreement with Verizon, and a streaming video component.
US Mobile Virtual Network Operators (MVNO) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Technology Snapshot
4.5 The Impact of the COVID-19 Pandemic on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Mobile Network Subscribers and the Growing Penetration of Data Users
5.1.2 Rising Demand for Efficient Cellular Networks
5.2 Market Challenges
5.2.1 Fragmented Nature of the Market
6. MARKET SEGMENTATION
6.1 By Operating Model
6.1.1 Reseller
6.1.2 Service Operator
6.1.3 Full MVNO
6.1.4 Other Operational Models
6.2 By Subscriber
6.2.1 Business
6.2.2 Consumer
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Verizon Communications Inc.
7.1.2 AT&T Corporation
7.1.3 T-Mobile USA Inc.
7.1.4 Cricket Wireless LLC
7.1.5 Xfinity Mobile (Comcast Corporation)
7.1.6 DISH Network LLC (Boost Mobile LLC)
7.1.7 TracFone Wireless Inc. (Straight Talk)
7.1.8 Republic Wireless Inc.
7.1.9 FreedomPop Inc.
7.1.10 Consumer Cellular Inc.
- *List Not Exhaustive
8. VENDOR MARKET SHARE
9. INVESTMENT ANALYSIS
10. FUTURE OF THE MARKET
US Mobile Virtual Network Operator Industry Segmentation
Mobile Virtual Network Operators (MVNOs) are wireless service providers that do not own the wireless network infrastructure but instead buy network capacity from existing MNOs to deliver services to their users.
The US MVNO Market is segmented by operating model (reseller, service operator, full MVNO, and other operating models), and by subscriber (business and consumer). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Operating Model | |
| Reseller | |
| Service Operator | |
| Full MVNO | |
| Other Operational Models |
| By Subscriber | |
| Business | |
| Consumer |
US Mobile Virtual Network Operators (MVNO) Market Research FAQs
How big is the US Mobile Virtual Network Operator Market?
The US Mobile Virtual Network Operator Market size is expected to reach USD 13.72 billion in 2024 and grow at a CAGR of 4.31% to reach USD 16.94 billion by 2029.
What is the current US Mobile Virtual Network Operator Market size?
In 2024, the US Mobile Virtual Network Operator Market size is expected to reach USD 13.72 billion.
Who are the key players in US Mobile Virtual Network Operator Market?
Verizon Communications Inc., AT&T Corporation, T-Mobile USA, INC., Cricket Wireless LLC. and Xfinity Mobile (Comcast Corporation) are the major companies operating in the US Mobile Virtual Network Operator Market.
What years does this US Mobile Virtual Network Operator Market cover, and what was the market size in 2023?
In 2023, the US Mobile Virtual Network Operator Market size was estimated at USD 13.13 billion. The report covers the US Mobile Virtual Network Operator Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the US Mobile Virtual Network Operator Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the major factors driving the United States Mobile Virtual Network Operator (MVNO) Market?
The major factors driving the United States Mobile Virtual Network Operator (MVNO) Market are a) The increasing popularity of prepaid plans aligns well with MVNO business models b) Advancements in network technology may allow MVNOs to offer more competitive network coverage and service quality
US MVNO Industry Report
The United States Mobile Virtual Network Operator (MVNO) market, the largest MVNO in the USA, is witnessing substantial growth, fueled by the introduction of 5G technology and a rising demand for affordable, flexible mobile solutions. These operators are capitalizing on underused network infrastructures to provide competitive services like VOIP, SMS, and internet, attracting cost-conscious consumers and businesses seeking customized communication options. The mobile virtual network operator market size is on the rise as MVNOs target niche segments with specialized services for groups such as travelers and enterprises, enhancing their offerings with robust cybersecurity and flexible billing to address consumer priorities and propel market expansion. They are poised to significantly impact the broader telecommunications ecosystem, offering increased choices and enhanced service quality. For detailed insights, including the US MVNO market share, size, revenue growth rate, and a forecast outlook, access a free report PDF download from Mordor Intelligence™ Industry Reports.
