U.S. MVNO Market

This Frost & Sullivan research service titled United States Mobile Virtual Network Operator (MVNO) Markets provides a market overview, revenue forecasts and demand analysis, and strategic recommendations for the MVNO markets.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

- Mobile and wireless communications

- MVNO
- Mobile virtual network enablers (MVNE)

Technologies

The following technologies are covered in this research:

- Mobile data

- Network technologies - 3G,
- Code Division Multiple Access (CDMA)
- Global System for Mobile Communications (GSM)

Market Overview

Customer Focused Strategies Likely to Drive MVNO Markets
Though relatively young, the U.S. Mobile Virtual Network Operator (MVNO) market is poised for solid organic growth in the coming years. A number of interested companies with strong brand recognition and marketing prowess have recently made forays into this segment in the United States. This has subsequently hiked competitiveness for existing participants as well as aspirants in this space. In addition, the value additions delivered by MVNOs have the potential to attract more customers, according to the analyst of this study. Unique personal relationships, value-added differentiated services, and focus on hitherto unexplored segment of population drive popularity and growth of MVNOs.
The customer-focused approach adopted by MVNOs is likely to pay rich dividends in the future. Their existing brand equity and customer loyalty is likely to be cemented by their efforts in offering differentiated services that add value. In addition, their unique relationship with their customer base is likely to play a pivotal role in their contribution to the wireless industry. Unlike carriers, MVNOs have the freedom to explore prepaid, immigrant groups, teens, and even credit-challenged segment of the society. This factor is likely to boost revenues and mileage.

Mutually Beneficial Relationship with Carriers to Drive Growth for MVNOs
Despite promising aspects of MVNOs such as the elimination of capital expenditure (CAPEX) investments in the network spectrum and carriers benefiting with customer addition and increased revenues, these markets face challenges. MVNOs depend on the network capability and spread of the carrier to offer their services and as a result, carriers can adopt a controlling attitude towards the former. This issue needs to be addressed carefully in the agreement between the two parties to avoid conflicts, leading to a devaluation of services. MVNOs leverage their popularity as a brand while entering the wireless space and draw a loyal customer base. The challenge lies in maintaining the customer loyalty as well as its brand equity by providing compelling wireless services.
As carriers and network operators concentrate their resources on the transition to next-generation network environments and spend huge amounts of CAPEX to buy network spectrum and augment network standards, their dependence on MVNOs rises. Ideally, carriers are likely to temper daunting challenges by fostering strong and long-term partnerships with MVNOs as they are expected to aid in augmenting services, customer acquisition, and generating revenues through differentiator services, explains the analyst. Besides, the revenues generated by the MVNOs are shared with the carriers and are mutually beneficial as they balance the carriers’ spending on network augmentation.

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1. Executive Summary

- 1. Market Overview

- - 1. Market Introduction

- - 2. Definitions

- 2. Research Service Overview

- - 1. Scope of Research Service

- - 2. Summary of Findings

- 2. Total U.S. MVNO Market

- 1. Overview

- - 1. U.S. MVNO Characteristics

- - 2. U.S. MVNO Market Overview

- - 3. U.S. MVNO Market Value Propositions

- - 4. U.S. MVNO Industry Challenges

- - 5. U.S. MVNO Market Drivers-- a. Carriers and MNOs Looking at MVNOs to Fill Part of their Network Space-- b. Slowing Growth in the Postpaid Wireless Forces Market Participants to Look More Closely at Prepaid Wireless Services-- c. Carriers and MNOs Experience Lower Acquisition Costs with MVNO Partnerships-- d. Lower CAPEX for MVNOs as they Rely on the Networks of the MNOs-- e. The Opportunity for the MNO to Generate Additional Revenue to Finance its CAPEX for Upgrading Technology and Networks-- f. Incremental Rise in Demand for Wireless Data-- g. Opportunity for New Entrants in the Wireless Services Business Space-- h. Leveraging Key Skills of Both Partners-- i. Driving the Brand Equity towards Success in the Wireless Business-- j. Limited Ability of MNOs and Carriers to Acquire New Customer Segments

- - 6. U.S. MVNO Market Restraints-- a. Dependency on the Network Operator-- b. The Risk of the Relationship Being Terminated Depending on the Business Strategy of the MNO-- c. Creating Internal Competition and Cannibalization-- d. Attitude and Acceptability of Carriers towards the MVNO Model-- e. First Mover Fear Factor-- f. Costs-- g. Profitability Potential

- 2. U.S. MVNO Markets Forecasts

- - 1. Market Forecasts

- - 2. Demand Analysis

- - 3. Meeting Industry & Consumer Demands

- 3. Strategic Recommendations

- - 1. Strategic Recommendation - Challenge 1

- - 2. Strategic Recommendation - Challenge 2

- - 3. Strategic Recommendation - Challenge 3

- - 4. Strategic Recommendation - Challenge 4

- - 5. Strategic Recommendation - Challenge 5

- - 6. Strategic Recommendation - Challenge 6

- - 7. Strategic Recommendation - Challenge 7

- - 8. Strategic Recommendation - Challenge 8 3. U.S. MVNO Market Competitive Environment

- 1. U.S. MVNO Market Scan

- - 1. Market Trends

- - 2. Emerging MVNO Opportunities

- - 3. U.S. MVNO Market Economics

- 2. U.S. MVNO Regulatory Environment

- - 1. Current Regulatory Environment

- - 2. Regulatory Expectations

- 3. U.S. MVNO Pricing Environment

- - 1. Prepaid Pricing

- - 2. Postpaid Pricing

- - 3. Pricing Forecasts

- 4. U.S. MVNO Technology Environment

- - 1. Current MVNO Technology Environment

- - 2. Emerging Wireless Technologies

- - 3. 3G/3G+ Network Technology Analysis

- 4. U.S. Mobile Virtual Network Enabler (MVNE) Market Environment

- 1. U.S. MVNE Market Overview

- - 1. Introduction of a MVNE

- - 2. Role of the MVNE

- 2. U.S. MVNE - Economies of Scale

- - 1. Benefits of an MVNE

- - 2. Emerging MVNE Opportunities

- 5. U.S. MVNO Market Players to Watch

- 1. U.S. MVNO Markets

- - 1. Mobile ESPN

- - 2. Disney Mobile

- - 3. Helio

- 2. U.S. MVNE Markets

- - 1. BCGI

- - 2. mPortal

List Of Figures

Chapter 2

- Mobile Virtual Network Operator Market: Impact of Top Industry Challenges (U.S.), 2006-2012

- Mobile Virtual Network Operator Market: Market Drivers Ranked in Order of Impact (U.S.), 2006-2012

- Mobile Virtual Network Operator Market: Market Restraints Ranked in Order of Impact (U.S.), 2006-2012

- Mobile Virtual Network Operator Market: Subscriber Forecasts (U.S.), 2004-2012

- Mobile Virtual Network Operator Market: Revenue Forecasts (U.S.), 2004-2012

- Mobile Virtual Network Operator Market: ARPU Forecasts (U.S.), 2004-2012

- Mobile Virtual Network Operator Market: Data ARPU Forecasts (U.S.), 2004-2012

- Mobile Virtual Network Operator Market: Voice ARPU Forecasts (U.S.), 2004-2012

Chapter 3

- Mobile Virtual Network Operator Market: Prepaid Wireless Subscriber Forecasts - MNO vs. MVNO (U.S.), 2004-2012

- Mobile Virtual Network Operator Market: Prepaid Wireless Revenue Forecasts - MNO vs. MVNO (U.S.), 2004-2012

- Mobile Virtual Network Operator Market: Revenue per Subscriber Forecasts (U.S.), 2004-2012

- Mobile Virtual Network Operator Market: Price per Minute Forecasts (U.S.), 2004-2012