Market Trends of Australia Mobile Virtual Network Operator (MVNO) Industry
Service Operators Segment is Expected to Witness Significant Growth
- Service provider MVNOs rely almost entirely on the infrastructure of the host MNO but offer services under their brand. They control billing, customer care, and sales, and the MNO handles the core network operations and maintenance. Depending on the wholesale agreement model, they can also offer self-owned SIMs and set tariff bundles and packages independently from the prices set by the host MNO.
- Service operators provide a range of tailored-made services compared to the MNO, often providing generic service that suits the masses. Service providers tailor their offerings to different consumer needs, such as providing the best international rates for frequent out-of-country callers. This allows the MVNOs to take on unique value propositions to differentiate themselves from competitors in the market significantly.
- Demands for better customer experience enable service providers to focus primarily on providing service rather than maintaining networks. These services offer a wide range of value-added support for the overall customer experience, including SMS content, voicemail, and real-time charging.
- In February 2024, Telstra Group, an Australian telecommunications company, partnered with Ericsson to deliver 5G network slicing services in Australia. The company will leverage Ericsson Dynamic Network Slicing solution capabilities to fully operationalize and monetize network slicing to enable use cases like Fixed Wireless Access (FWA), broadcasting, and automotive connectivity, among others, on Telstra's 5G network.
- The advent of 5G offers further growth potential for service providers to enhance their capabilities in the Australian MVNO market. 5G will enable MVNOs to deliver premium, dependable, and differentiated service experiences beyond standard mobile broadband and deliver service to meet the needs of specific customer use cases during the forecast period.
- According to OpenSignal, in 2023, Australia's 5G upload speed was at 15.70 megabits per second, the fastest average 5G download speed was at 182.30 megabits per second, and Australia's highest peak download speed was at 565.60 megabits per second.
- Overall, growing investments and developments in advanced 5G connectivity in Australia will offer lucrative opportunities for service providers in the region to extend their services across a broad range of customer use cases and deliver incredible value for customers and individual subscribers. MVNOs can offer services that provide stability, scalability, and control, as well as the capability to monitor the entire operation of the provided services, which is likely to propel the growth of the market.
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Consumer Segment to Hold Major Market Share
- Most MVNOs target the consumer segment to increase their market share. MVNOs serve customer segments' demands, offering personalization and flexibility to enhance the customer experience. Growing customer demands to be able to switch brands quickly to meet their expectations is encouraging MVNOs in Australia to focus on the pricing of services without the challenges of running the physical network.
- The consumer segment is anticipated to witness substantial growth in the Australian MVNO market during the forecast period owing to the rising adoption of the B2C model or selling directly to consumers by network operators. There is a growing demand for mobile offers aimed at the general public, causing the MVNOs to implement the necessary processes to manage their subscriber base, billing, marketing and sales, as well as providing support services.
- Consumer MVNOs in Australia are rapidly making efforts to grow and retain their subscriber base by offering innovative services and benefits and encouraging referrals. Many MVNOs differentiate themselves by providing tailored mobile offers for subscribers traveling abroad through a local network partner (MVNE). Many are providing offers aimed at communities in their own language with attractive international rates. Community-based MVNOs opt for prepaid mobile plans to attract consumers looking for connectivity at competitive prices and ensure a smooth user experience. This is further propelling the market growth in the consumer segment.
- In March 2024, Boost Mobile, a youth-focused telco brand, launched "Boost Broadband," its new range of NBN (National Broadband Network) and NBN+ (High-Speed Fibre to the home or workplace) offers for customers in Australia to access great deals on high-speed home internet. The company expanded beyond mobility offerings, providing a great customer experience and the best deals for Australian consumers. Through a partnership with BTB Australia, a provider of telecommunication services, Boost has become an Internet Service Provider (ISP) to offer a range of highly competitive NBN solutions to Australian households. The company has more than doubled its customer base in recent years.
- In terms of operating mode, service providers are gaining rapid traction in the consumer segment in Australia. Service providers are focusing on consumer experience and value to meet the needs of Australian households for reliable high-speed internet delivered by local ISPs. Thus, Boost Mobile, in addition to its ISP business and NBN product offering, also launched eSIM capabilities on its prepaid offerings to further empower Australian consumers.
- According to the Australian Communications and Media Authority, In 2023, in Australia, about 86% of adults in a survey about telecommunications stated they used their smartphones to access the internet multiple times in a day.
- Overall, as Australian consumers move toward a consumer-focused brand for broadband connectivity, MVNOs can create personalized packages to deliver different data Quality of Service (QoS) and 5G services to meet customer requirements, which is anticipated to propel the growth of the market.
