Impact of MVNOs in Latin America

Today, life is inextricably linked to virtual connectivity.

The omnipresence of voice and data services has redefined everyday life, and in this scenario, Mobile Virtual Network Operators (MVNOs) emerge as major players in a revolutionary transformation in the field of telecommunications.

In the following Guinea Mobile article, learn about the dizzying growth of MVNOs, their innovative approach and the impact they have had in crucial economies such as Colombia, Brazil and Mexico.

The difference between traditional and virtual mobile operators

There are significant differences between mobile virtual network operators (MVNOs) and mobile operators with their own infrastructure, known as incumbents.

These distinctions cover a number of key aspects, such as network ownership and management, operational flexibility, service customization and technological innovation. Incumbent operators maintain full control over the network infrastructure.

This provides independence to plan and manage every aspect of its network, from expansion to maintenance. On the other hand, MVNOs, not having their own infrastructure, choose to rent capacity and resources from other operators.

These differences translate into a variety of impacts, ranging from service quality to offer customization and agility in adapting to changing market demands.

The attractiveness of MVNOs

Mobile Virtual Network Operators (MVNOs), a booming business model, have reshaped the telecommunications horizon.

In contrast to conventional providers, they do not need to make monumental investments in infrastructure or obtain government concessions, as they take advantage of the established networks of traditional operators to provide services.

This agile and versatile adaptability allows them to adjust quickly to changing market demands.

Unstoppable growth in Latin America

According to Daniel Cabrera of The Ciu, the Latin American scenario has been the epicenter of a vertiginous growth of Mobile Virtual Network Operators (MVNOs), with an outstanding focus on countries such as Colombia, Mexico and Brazil.

Although Colombia experienced a temporary contraction due to the effects of the pandemic, its resilience was surprising, achieving a 21% increase by the end of 2021.

However, the most impressive cases are located in Brazil and Mexico, with growth rates of 30.4% and 58.6% respectively. Despite the impact of the pandemic in both nations between the second quarter of 2020 and 2021.

MVNOs not only managed to contain their growth, but also drove it. As 5G technology takes center stage and enables network slicing, a new generation of Mobile Virtual Network Operators is on the horizon in Latin America.

Light trails above buildings

5G innovation and the future of MVNOs

The introduction and expansion of 5G technology is unleashing a new era for MVNOs. This next generation of MVNOs is at the forefront of innovation by merging ultra-fast connectivity, cloud services, artificial intelligence and Big Data.

This revolutionary approach not only redefines the way we interact with mobile technology, but also opens up a horizon of possibilities for small businesses and entrepreneurs.

By combining unprecedented connectivity speeds with the power of artificial intelligence and data analytics, these operators are poised to deploy advanced, customized solutions.

Social and economic impact

The Federal Telecommunications Institute (IFT) has highlighted the potential of Mobile Virtual Network Operators (MVNOs) to generate a significant impact on society and the economy.

By targeting low-income families and small businesses, MVNOs can be agents of empowerment by offering personalized and differentiated connectivity solutions.

This strategic targeting allows previously isolated sectors to access advanced services such as IoT, Blockchain and cloud computing, generating a positive effect on digital inclusion and economic growth at the local level.

Futuristic smart city with 5G global network technology

Conclusion

This is why MVNOs rule as true drivers of transformation in the telecommunications landscape.

Their agile and bold approach, coupled with the significant impact they generate both socially and economically, positions them as true agents of change and progress in the communities they serve.

In this era of interconnection, MVNOs are carving a path to an advanced stage in the digital revolution. If you are interested in how this metamorphosis can benefit your environment or business, contact us for personalized advice.