U.S. MVNO Market 2025–2032: Growth, Trends, and Key Drivers

The U.S. Mobile Virtual Network Operator (MVNO) market was valued at USD 30 billion in 2024 and is projected to grow at a CAGR of 7.5% from 2025 to 2032, reaching USD 52.9 billion by 2032. This growth is fueled by consumers’ increasing demand for affordable and flexible mobile services.

MVNOs attract customers by offering lower-cost mobile plans than traditional carriers, particularly prepaid options without contractual obligations. Additionally, MVNOs leverage strategic partnerships with major carriers to provide reliable coverage while avoiding the high costs of building and maintaining their own networks. The rise of 5G networks and other technological innovations further enables MVNOs to offer high-speed services at competitive prices, targeting niche market segments effectively.

U.S. MVNO Market Trends & Drivers

Expansion of 5G Services

The rollout of 5G networks is a key trend for MVNOs, allowing them to deliver high-speed data services to meet growing consumer demands for faster and enhanced wireless experiences. Faster data transfer and reduced latency benefit users streaming media, participating in video calls, or utilizing IoT devices.

In December 2024, the FCC implemented the 5G Fund for Rural America.

MVNOs lease 5G infrastructure from major carriers like Verizon, AT&T, and T-Mobile, enabling affordable next-generation connectivity.

In September 2023, the NSF invested USD 25 million to advance five convergent teams in secure public 5G network operations for critical sectors.

In January 2024, the NTIA announced nearly USD 80 million in grants from the USD 1.5-billion Public Wireless Supply Chain Innovation Fund to support interoperable wireless networks.

The ability to access low-cost 5G infrastructure allows MVNOs to deliver competitive services to price-sensitive consumers.

Growing Demand for Affordable and Flexible Plans

Consumers increasingly prefer economical mobile solutions, which positions MVNOs as a cost-effective alternative to major carriers. By leasing or purchasing network access, MVNOs avoid infrastructure costs, passing savings on to users.

In December 2024, startup Gigs raised USD 73 million in Series B funding to enable businesses to sell mobile plans.

In October 2023, the NTIA launched a USD 1-billion program to improve middle-mile infrastructure connecting local networks to the internet.

Prepaid and no-contract plans remain highly popular, appealing to users seeking flexible payment options.

U.S. MVNO Market Segmentation

By Payment Model

Prepaid: Largest share at 70% in 2024; expected to grow fastest due to flexibility and affordability.

Postpaid: Smaller share; less growth compared to prepaid options.

Prepaid plans particularly attract young users, immigrants, and individuals with poor credit, providing budget-friendly, no-contract solutions.

By Service Type

Telecom: Largest category at 30% in 2024, including mobile voice, text, and data services.

Discount: Fastest-growing segment as consumers seek lower-cost alternatives.

Other service types include Media & Entertainment, Business, Retail, Migrant, Cellular Machine-to-Machine, and Roaming.

By Business Model

Reseller MVNOs: Largest share at 65% in 2024, benefiting from low market entry costs.

Full MVNOs: Fastest-growing, maintaining independence through ownership of core network systems.

Other models include service-based MVNOs.

By Subscriber Type

Consumer: Largest share at 60% in 2024, driven by demand for affordable mobile plans.

Enterprise: Fastest-growing, fueled by remote work, digital transformation, and IoT adoption.

By Geography

Southern U.S.: Largest market at 45% in 2024, supported by population growth in Texas, Florida, Georgia, and North Carolina.

Western U.S.: Fastest-growing region due to technological innovation and high mobile adoption, especially in California.

Other regions include Northeast and Midwest.

Market Dynamics

The U.S. MVNO market is highly fragmented, with numerous small, medium, and large operators catering to diverse customer preferences. The lack of need for proprietary network infrastructure allows tech firms, retailers, and non-traditional players to enter the market.

Leading U.S. MVNO Companies

AT&T Inc.

Verizon Communications Inc.

T-Mobile US Inc.

Red Pocket Inc.

Truphone Limited

CITIC Telecom International Holding Limited

BT Group plc

Airvoice Wireless LLC

Giffgaff Limited

Lycamobile UK Limited

Asahi Net Inc.

Dataxoom

Recent Market Updates

October 2024: Tracfone updated its Unlimited Talk & Text plans, offering double data limits for the same price with durations of 30, 60, 90, 180, and 365 days.

August 2024: T-Mobile US Inc. partnered with Starlink/SpaceX to develop satellite communication technology linking directly to cell phones.