Asia - Mobile Network Operators and MVNOs

Leading Asian Nations Prepare for 5G Launches

Asia's mobile operators must consider the individual merits of each country rather than a broader regional approach

The Asian telecommunications market is really made up of three distinctive sub-regions: Northern Asia, Central Asia, and South East Asia. The development of the mobile sector has progressed at quite different rates in each area, with South East Asia clearly leading the way in terms of average penetration rates: 140% in 2021 compared to Northern Asia on 119% and Central Asia far back on 92%.

One of the reasons for over-performance in countries like Thailand, Malaysia, and the Philippines (which might still be viewed as having emerging economies) is the relative popularity of owning multiple devices and SIM cards to take advantage of on-network deals. Some parts of Northern Asia - specifically Hong Kong and Macau - also enjoy extremely mobile penetration levels, however the strong influence of tourists and itinerant workers on those markets saw a decline in subscriber numbers as a result of the lockdowns instituted during the Covid-19 crisis of 2020 and 2021.

Central Asia's under-performance is chiefly a reflection of the large amount of state control and influence that continues to exist in many parts of that region. Foreign investment and multi-national operators have been reluctant to commit too strongly to markets where there is a high level of government interference and even corruption occurring, making it difficult for private companies to operate freely and effectively.

With high levels of risk, uncertainty, and instability evident in many Asian markets where authoritarian regimes hold sway, few regional operators have been successful in establishing a presence beyond just a few countries. Those tend to be found in places that are closely related by geography or culture. Few cross-border agreements exist (certainly not to the same extent as seen in other parts of the world). It is much more common to see each individual country having applied their own sets of standards and rules for operators to adhere to, making it much more challenging from a technical as well as legal perspective to get established. It also reduces the opportunity to achieve greater economies of scale, which makes other markets (such as Africa) much more attractive to the big players.