The telecom industry in the Asia-Pacific region has undergone significant changes in recent years, mainly due to the rise of Mobile Virtual Network Operators (MVNOs). These MVNOs have transformed the telecommunications market by offering alternative mobile services, creating a competitive and dynamic environment.
Unlike traditional mobile network operators (MNOs), MVNOs do not own the physical infrastructure needed to operate a wireless network. Instead, they rent network capacity and services from existing MNOs, enabling them to provide voice, data and messaging services to their customers.
MNVOs are primarily based in Europe, and the development of these operators is anticipated to be significantly influenced by the favorable regulatory environment there. Nations like the United Kingdom, Germany and the Netherlands are anticipated to positively affect regional growth. In this area, data services are expected to be the primary development engine.
Significant growth is also anticipated in the Middle East and Asia-Pacific regions. The market for mobile virtual network operators has expanded in the Asia-Pacific area as a result of the sector’s impressive expansion. The telecommunications networks of nations like China, India, Vietnam, Myanmar and other growing economies are being expanded and modernized.
Furthermore, Thailand, Singapore and the Philippines are among the Southeast Asian nations that are forecast to have a large impact on the regional industry. Overall, favorable regulatory conditions and the proliferation of telecom services are expected to propel the MVNO market to significant growth in both Europe and Asia Pacific.
The Asia-Pacific MVNO market was anticipated to expand at a compound annual growth rate (CAGR) of 12.5% from 2016 to 2022, according to analysis. Regarding the operational model, the Full MVNO market dominated the Asia-Pacific MVNO industry in 2015 and was expected to maintain its dominance until 2022. During the same time period, the Service Operator MVNO market was projected to expand at a CAGR of 13.8%. In addition, from 2016 to 2022, the Reseller MVNO market was expected to expand at a CAGR of 13.6%.
Additionally, China was anticipated to attain a market value of US$835.7 million in the Asia-Pacific Telecom & IT MVNO industry, according to country-specific marketplaces. Also, during the forecast period, it was predicted that the India market would develop at a CAGR of 14%, while the Japan market would expand at a CAGR of 12.7%.
The research offers comprehensive quantitative insights into the market potential in several categories across the Asia-Pacific regions. Along with extensive company profiles of AirVoice Wireless, Asahi Net, Inc., CJ Group, SoftBank Group Corporation, Exetel, FreedomPop, Cyfrowy Polsat and FreenetAG, it also covers the important variables affecting the Asia-Pacific MVNO industry.
APAC MVNO Market Growth in 2023-2028
The Asia-Pacific MVNO Market is projected to grow from US$49.85 billion in 2023 to US$50.05 billion by 2028, with a CAGR of 0.08% during the forecast period from 2023 to 2028. Technological enablers such as E-Sim, AI, ML and edge computing are providing MVNOs with new opportunities.
According to the India Brand Equity Foundation, India is expected to have around 350 million 5G subscriptions by 2026. Furthermore, as of January 2021, South Korea had already attained a high internet penetration rate of over 97%. The market for smartphones is expected to rise, and there is an increasing need for inexpensive telecom services. Therefore, MVNOs in the area will increase their market share and offer affordable wireless telecom services as the 5G market expands.
The development of 5G and IoT technology is driving the overall expansion of the MVNO market. Current developments indicate a growing demand for flexibility and a wider range of services among enterprises and mobile end users. MVNOs are leveraging the potential of 5G and IoT to offer new services, as these technologies are highly disruptive.
However, MVNOs may face challenges in terms of prioritization, as their data speeds can slow down during periods of high traffic when the main network operator prioritizes its own customers’ data speeds. This could hinder the expansion of the market.
The host network operator’s robust and favorable relationship with the MVNO is a key factor in determining the success of the latter. Direct market competition with the primary network provider can be difficult for an MVNO, which should carefully choose its target segment to prevent conflict with the host operator.
The MVNO might set itself apart from the host service provider by concentrating on particular offers and underserved market segments. In order to effectively reach its target demographic, the MVNO should employ creative marketing techniques and broaden the scope of its offerings.
