A Techno-Economic Analysis of Mobile Virtual Network Operators

Abstract

The purpose of this study is to examine cross-national data in order to identify possible factors related to the observable patterns of Mobile Virtual Network Operator (MVNO) penetration. For this purpose, a mobile market structure is analyzed considering important economic factors related to the penetration of MVNOs. MVNOs have gained popularity in the Western markets, but have a dismal track record in non-Western regions. In comparing the different regions, this study analyzes how the MVNO market has changed and what opportunities and/or threats network operators and potential MVNO entrants are likely to face. This study conducts an economic assessment of market structure and environment for different countries’ MVNO penetration. The data on market structure is analyzed by means of cluster/factor analysis techniques in order to group countries according to their market environments. Then, regression equation analysis is used to investigate the relations of MVNO penetration and independent variables. The results show that MVNO penetration significantly relates to market structure and performance. These results also imply an appropriate policy to promote MVNO diffusion.