Evolution of Mobile Virtual Network operators in Spain: trends and current situation.

As mobile virtual network operators plan their actions for next year, with highlights for the use of 5G technology, loT, VoLTE and much more, it becomes necessary to stop and analyze its current state and trends in the market.

A report prepared by the Spanish CNMC (National Commission of Markets and Competition) has demonstrated the new reality of mobile virtual network operators (MVNO) in this country, which represent 16% of total subscribers, being an important element to stimulate competition in the market.

MVNO trends in Spain

MVNOs (mobile virtual network operators) are small companies that do not own a frequency spectrum concession, but work on another company’s network, offering more accessible service plans that make them a very attractive option for the public.

Mobile virtual network operators in Spain are part of a solid business model, with a market share of more than 16% of the total number of active mobile lines in Spain, which means around 55 million users approximately, according to data provided by the CNMC in its latest report.

In Spain there are 3 main operators with their own network: Movistar, Vodafone and Orange. On the other hand, thanks to the profitability of mobile virtual network operators in the country, more than 24 MVNOs can be listed throughout the national territory, with more than 8 million active users.

A sign of success of this business model is that some of the main operators with their own networks have their own MVNO, as is the case of Movistar’s Tuenti, which began as a social medium and was acquired by the company in 2010. Another example is Orange’s Amena, a company that migrated with great acceptance from the public due to its acquired advantages. It is also worth mentioning Lowi, which has just been launched by Vodafone.

Consolidated MVNOs: current status

Operators such as Jazztel and Ono have an excellent reputation in the market, with millions of users on the Internet and fixed telephony, also offering digital television services. Pepephone is another MVNO that operates under the Vodafone network since 2007 with a resounding success in the market, thanks to a simple marketing strategy, and that currently plans to offer migration to Movistar in order to offer 4G coverage.

MásMóvil is another MVNO which is worth mentioning; in 2020 alone, it gained more than 9400 new subscribers, which many attribute to its risky advertising campaigns.

At regional level new service providers have emerged that already have their own operators, such as Euskaltel in the Basque Country and R in Galicia; the two together already have more than 200 thousand subscribers.

In practice, the way MVNOs act varies by market. However, they have demonstrated a good business evolution, which allows them to be seen as a very profitable business model.

At JSC Ingenium, provider of mobile services and solutions, we offer you a Full CORE 3G/4G infrastructure, in addition to the complete Business Support System, so that you can offer your customers a quickly deployable solution.

JSC Ingenium currently has operational deployments in 15 countries and serves more than 60 operators worldwide.