A mobile virtual network operator (MVNO) is a mobile communications services provider that does not own radio spectrum, and has limited network infrastructure and other operational capabilities required to provide mobile services to its customers. In order to offer services, MVNOs form agreements with mobile network operators (MNOs) from which they buy minutes, SMS and data at wholesale rates.
Emerging Asia featured the lowest share of MVNO subscriptions of total mobile subscriptions of all regions at 0.7% at the end of 2016, compared to AME (0.9%), LATAM (1%) and CEE (1.6%). The author expects the MVNO share of mobile subscriptions to rise considerably from 0.7% in 2016 to 5.5% by end-2021, mainly driven by growth in China, Myanmar, Malaysia and the Philippines. We expect MVNO subscribers in China to grow at a CAGR of 65.1% over 2016-2021. Other emerging markets such as Malaysia and Myanmar also are growth markets for the MVNOs.
Increasing smartphone penetration, rising data traffic, telecom infrastructure development, expansion in rural and remote areas, rollout of 3G/4G services and growing adoption of M2M and IoT solutions will drive growth in the mobile market in emerging Asia while a healthy investment climate coupled with a conducive regulatory environment will induce growth of MVNOs in the region. The MVNO model in emerging Asian countries has been attracting interest from players such as cable companies, ISPs and e-retailers among others who are keen to use their established brand name and existing sales and distribution channels to generate an alternative revenue stream.
It is estimated that active MVNO subscriptions reached 194.9m globally at the end of 2016, the majority of which are in Western Europe (WE), Central & Eastern Europe (CEE) and North America (NA), comprising of 63.6% of total MVNO market globally.
The report "MVNOs in Emerging Asia: MVNO friendly regulatory framework and unique product offerings to drive MVNO market" provides an overview of the main MVNO business models available in emerging Asia as well as some of the most successful initiatives for each business model. Additionally, this report also includes an assessment of the regulatory and support framework for MVNO growth in the region along with analysis of the main regulatory trends. Finally, we conclude with some case studies and recommendations for regulators, network operators and MVNOs.
Companies mentioned in this report: ABS-CBN Mobile, Xiaomi, redONE, Buzzme, 168 Communication, Snail, Lenovo, Tune Talk, Alibaba, CAT Telecom, Smart Pinoy, Gome, China Telecom, China Mobile, China Unicom.
- Among different business models adopted by the MVNOs in the region, niche business model is the widely adopted by 28% of the total MVNOs present in this region catering various segments including youth, immigrants, students and health enthusiasts. This is followed by retail and enterprise models. Retail and business models are also gaining popularity, accounting for 16% and 14%, respectively.
- The author estimates MVNO market in emerging Asia will record a CAGR of 56% over 2016-21. MVNO subscriptions estimated to reach 233.5m (5.5% of emerging APAC’s total mobile subscription count) by 2021-end from 25.3m in 2016 (0.7% of total mobile subscriptions) which are far below the levels in developed markets like North America, Western Europe and developed Asia.
- China’s MVNO market is expected to witness the strongest growth among emerging Asia countries with a CAGR of 65.1% from 2016 to 2021.
Reasons to buy
- The report provides analysis of MVNO businesses in the Emerging APAC along with detail examination of the various business models adopted in countries such as China, Myanmar, Malaysia, Thailand, the Philippines among others by the MVNOs for increasing their subscriber base.
- Provides in-depth understanding about the product and service offering portfolio being offered by MVNOs in Emerging Asia to help new entrants to align their product offerings.
- Helps executives build business growth strategies by offering comprehensive, relevant analysis of the Emerging Asia region’s growing MVNO market, regulatory framework, competitive environment and best practices of the existing MVNOs.
- The case studies focus on different product and service offerings and strategies being adopted by them to drive subscriber growth of the leading MVNOs operating in the region.
- By understanding the interests and positions of the main stakeholders in the MVNO market - MNOs, end users, regulators, content providers and ISPs - telecom professionals/operators can develop strategies and increase their participation in the growing MVNO market.
Section 1: MVNO definition and main business models
MVNO business models
Section 2: Global and regional MVNO market context
MVNO market worldwide
MVNO market in emerging Asia
Most prevalent MVNO business models in emerging Asia
Section 3: MVNO market evolution in emerging Asia
Regional market outlook
Section 4: Case studies
Ali Telecom: China
Smart Pinoy: Malaysia
Conclusions: Key findings and recommendations
Appendix: Acronyms and Definitions
List of Exhibits
Exhibit 1: MVNO Market structure
Exhibit 2: MVNO Main operational business MODELS
Exhibit 3: Most prevalent MVNO Business models in APAC based on their marketing approach
Exhibit 4: MVNO Business models based on their marketing approach
Exhibit 5: MVNO Subscriptions market share by region, 2016
Exhibit 6: MVNO Subscriptions as a percentage of total mobile subscriptions by region, 2016
Exhibit 7: MVNO Subscriptions as a percentage of total mobile subscriptions by country, 2016
Exhibit 8: MVNO Subscription market share by country, emerging Asia, 2016
Exhibit 9: Number of active MVNOs And market share per business model, emerging Asia, 2016
Exhibit 10: Most prevalent MVNO Business models in emerging Asia based on their marketing approach, 2016
Exhibit 11: Active niche MVNOs, Emerging Asia, 2016
Exhibit 12: Ethnic MVNOs, Malaysia, 2016
Exhibit 13: Main reason to launch a retail MVNO model
Exhibit 14: Examples of business based MVNOs operating in emerging Asia
Exhibit 15: MVNO MY Evolution’s business model
Exhibit 16: China’s MVNO subscription evolution for and CAGR 2016-2021
Exhibit 17: MVNO subscription evolution for selected countries and CAGR 2016-2021
Exhibit 18: Regulation drivers impacting the MVNO market, 2016
Exhibit 19: Most recent cases of MVNO regulation, emerging Asia
Exhibit 20: Most recent cases of regulations affecting MVNOS in emerging Asia
Exhibit 21: Indirect regulatory measures favoring MVNOs, 2016
Exhibit 22: MVNO activity ranking based on forecasted penetration levels 2016-2021
Exhibit 23: MVNO activity ranking based on forecasted penetration levels 2016-2021 (Contd.,)
Exhibit 24: Mobile market share of all Chinese MVNOs (in terms of total mobile subscriptions) 2015-2021
Exhibit 25: Alibaba key developments in the Chinese telecom market (2014-2016)
Exhibit 26: Special offers for redONE subscribers
Exhibit 27: redONE subscriptions 2012-2015
Exhibit 28: Super SIM offered by Smart Pinoy with two numbers (Malaysia + Philippines), 2016
Exhibit 29: Smart life global application