DUBLIN, March 21, 2022–(BUSINESS WIRE)–The “Asia Pacific Mobile Virtual Network Operator (MVNO) Market – Growth, Trends, COVID-19 Impact, Forecasts (2022 – 2027)” report has been added to ResearchAndMarkets.com’s offering.
The Asia Pacific MVNO was valued at USD 29.33 billion in 2021, and it is expected to reach a value of USD 46.42 billion by 2027, registering a CAGR of 7.93%, over the forecast period 2022-2027. New Technology enablers, like e-Sim, AI, ML, and edge computing are creating new opportunities for MVNO.
MVNOs are well-established in developed markets and will become increasingly important in developing markets as they mature. In recent years, competition in the Asia-Pacific MVNO market has shifted from pricing to value-added services and product differentiation, owing to the prominence of MNOs in the low-cost cellular services market in both developed and developing countries.
Asian mobile markets are significantly huge and are full of variation. Japan, South Korea, China, Hong Kong, and the Association of Southeast Asian Nations (ASEAN) countries have different mobile market landscapes. This variation and diversity could not be supported by the effort of mobile network operators (MNOs), essentially domestic beings, contrary to MVNOs, which have little asset binding to land.
Moreover, According to the India Brand Equity Foundation, India’s 5G subscriptions will reach around 350 million by 2026. Similarly, the internet penetration in South Korea crossed 97% in January 2021. The expanding smartphone market and the growing demand for cost-effective telecom services will support the industry expansion. The expanding 5G market will encourage mobile virtual network operators (MVNO) in the region to solidify their industry presence to offer affordable wireless telecom services.
Furthermore, the Asia Pacific market revenue generation by the MVNO’s would be achieved by offering cheaper mobile minutes to industries such as lifestyle, productivity, and entertainment. The leading business models used by the MVNO’s are complete, intermediate, branded resellers, and thin.
Also, COVID-19 has accelerated digital transformation across the world, and the Asia Pacific region is no exception. The rapid growth of online education and health services, e-commerce, and remote working have highlighted the significance of the internet. In low- and middle-income countries, most people access the internet via mobile, and for many, it is the only way to be online.
It has provided people with an essential means to keep in touch with their families and friends and access important information, services, and opportunities to support their lives and livelihoods, particularly during lockdowns. Therefore, the mobile industry in the Asia Pacific region has remained resilient, with flat growth in mobile subscriptions and a slight dip in earnings.
The Asia Pacific MVNO market is highly competitive, primarily owing to the presence of multiple players in the market. The market is leading towards fragmentation, with the major players in the market adopting strategies like service innovation strategic partnerships to expand their client base and stay competitive in the market.
Some of the major players include Asahi Net Inc., Rakuten Mobile Inc., LG HelloVision, Snail Mobile, Exetel Pty Ltd, FreedomPop, Tune Talk SDN BHD, SK Telecom Co. Ltd, Japan Communications Inc., among others.
Key Market Trends
Rapid Adoption of Technology will boost the demand for MVNOs
The extensive utilization of cutting-edge technologies, such as the Internet of Things (IoT) and Artificial Intelligence (AI), is estimated to increase the demand for mobile virtual network operators in the Asia Pacific region.
MVNOs are on the rise in an increasingly digital world and fragmented telecommunications industry, applying emerging technologies, exploring new verticals, and providing value to consumers and existing mobile network operators (MNOs).
The growing adoption of e-SIM is also expected to expand. The e-SIM, with the remote provisioning standards created by the GSMA, provides simplicity and flexibility to MVNOs’ vendors. e-SIM technology continues to be a game-changer in the market. MVNOs are embracing digital channels for engaging with end-users and are offering IoT solutions to businesses by harnessing e-SIM technology.
e-SIM adoption is rising as it allows end-users to purchase connectivity from any operator at any time and from anywhere, with a few clicks. This is the key to new possibilities for MVNOs as they focus on bringing innovative, dynamic, and user-centric solutions to the market.
For instance, G+D Mobile Security expected 1 billion devices to be connected by e-SIM by the end of 2020. However, this is expected to grow at an exponential rate, reaching almost 2 billion shipments by 2025. The studied segment is expected to be driven by increased adoption of M2M technology and e-SIM in the consumer market, as the IoT creates more and more crossover in B2C markets.
5G will enable a new generation of MVNOs
The growth across the MVNO industry is accelerating with the advancing technology around 5G and IoT. Current trends represent a need for demand flexibility and a more comprehensive range of services for businesses and mobile end users. MVNOs are leveraging the power of 5G and IoT – two of the most disruptive technologies in the modern era – to bring new services.
The market studied is flourishing, with the regulatory environment in most Asia Pacific countries becoming more supportive of the market. This has led to an accelerated MVNO subscriber surge in the region. 5G deployment efforts and widespread e-SIM adoption also act as key growth drivers for the industry.
The development and increasingly growing need toward the adoption of 5G have encouraged various countries in the Asia Pacific region to take various initiatives for the development of 5G by utilizing MVNOs. For instance, in April 2021, the South Korean ICT ministry announced its plans to increase competition in the local 5G market by releasing affordable mobile data plans from MNVOs. The ICT ministry stated that 10 MVNOs in the country, including Sejong Telecom Inc., will release new data plans starting April that provide up to 30 GB of data for around 40,000 won (USD 35).
The release of new data plans came three months after the ICT ministry changed administrative rules so that MVNOs could independently design 5G data plans instead of working with telecom operators as in the past. Additionally, as of February 2021, 5G subscriptions to MVNOs stood at around 7,000, compared to 13.66 million users. Also, the total number of MVNO users stood at 9.27 million in February, of which 6.6 million were subscribed to 4G networks.
Key Topics Covered:
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHT
4.1 Market Overview
4.2 Industry Attractiveness – Porter’s Five Forces Analysis
5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 MVNO Penetration and Characteristics Similar to Major European Countries
5.1.2 Regulatory Environment in Most Asian Countries has Become Much More Supportive of MVNOs
5.2 Market Restraints
5.3 Assessment of the Impact of COVID-19 on the market
6 MARKET SEGMENTATION
6.1 By Operational Mode
6.1.2 Service Operator
6.1.3 Full MVNO
6.1.4 Other Operational Modes
6.2 By Subscriber
6.3 By Geography
6.3.1 Mainland China
6.3.4 South Korea
6.3.5 Rest of Asia Pacific
7 COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Asahi Net Inc.
7.1.2 Rakuten Mobile Inc.
7.1.3 LG HelloVision
7.1.4 Snail Mobile
7.1.5 Exetel Pty Ltd
7.1.7 Tune Talk SDN BHD
7.1.8 SK Telecom Co. Ltd
7.1.9 Japan Communications Inc.
7.1.10 EG Mobile Co. Ltd
7.1.11 Sakura Mobile
7.1.12 Mobal Communications Inc.
7.1.13 Biglobe Inc.
For more information about this report visit https://www.researchandmarkets.com/r/pzhtxb
View source version on businesswire.com: https://www.businesswire.com/news/home/20220321005485/en/
Laura Wood, Senior Press Manager
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