The MVNO market shows no signs of slowing as Australians continue to demand low-cost mobile plans. This is a global phenomenon. Orbis Research1 says the global MVNO market was valued at $US54.1 billion last year, and is expected to show compound annual growth of 8.8% through to 2023.
Although these figures show that the market is healthy, service providers know that this growth attracts further competition.
Now more than ever, it’s important that MVNO’s explore growth opportunities and new revenue streams.
Earlier this month I was fortunate enough to attend MVNO World Congress in Madrid, where major industry players discussed the trends that will shape the growth of this industry sector.
Three trends dominated the conference – 5G, eSIMs and IoT.
It was pleasing to see that the leading opportunities at MVNO World Congress were aligned to what our business has already started to work on.
Optus will begin rolling out its 5G network next year. 5G will bring benefits such as lower latency, higher speeds and greater bandwidth. This will pave the way for new market opportunities and advances in technologies like robotics and artificial intelligence.
As an MVNO, you need to start planning for where that technology will take the market and how it is going to make sense in your business.
Death of the SIM card
We’re on the cusp of seeing a revolution in SIM-card technology. The arrival of the electronic sim (eSIM) will break down traditional carrier relationships, eliminating the need for a physical card to be inserted into handsets. This will make it easier for users to switch between mobile providers and improve the customer experience.
Although the concept of eSIM has been around for a couple of years, GSMA standardisation plus implementation by manufacturers like Apple and Samsung will likely speed its introduction over the next couple of years.
The opportunity to quickly lower costs and alter mobile plans will attract consumers who demand a more flexible approach and service. This is important for MVNOs because it opens up acquisition and retention opportunities.
Moving beyond mobile
Many MVNOs are looking to take advantage of opportunities presented by the Internet of Things (IoT). A recent study from Telsyte2 found that the average Australian household has 17.1 connected devices in 2018, up from 13.7 in 2017. This number is forecasted to more than double in the next four years.
And IoT isn’t restricted to the consumer segment. It’s also changing the way the business world operates. For example, retailers are monitoring real-time temperatures in delivery vehicles, ensuring perishable food like fruit and dairy arrive in perfect condition.
These advances in technology won’t happen in isolation – IoT will be boosted by 5G and software-based eSIMs, and they will rely on the advanced network to enhance data security. Whatever these three key trends mean for your business, Optus Wholesale will help you make the most of these new opportunities.
Most innovative wholesaler
Lastly, Optus Wholesale scooped two awards at this year’s MVNO World Congress. We’re proud to be recognised as the Most Innovative Wholesaler and the People’s Choice Winner for 2018.