What’s driving APAC’s MVNO growth, and where are the new opportunities?
This is custom heading element
[stm_post_details css=”.vc_custom_1609884296885{margin-bottom: -55px !important;}”]The following is an excerpt from Allan Rasmussen’s “Trends in Asia Pacific’s MVNO Market” presentation, from the Telecoms World Asia event, in Bangkok 27 March 2019.
INTERNET OF THINGS (IoT) • MACHINE TO MACHINE (M2M)
- Growth due to various national programs (Digital Country X, Smart Cities, Smart Villages, etc.)
- Increased cross-border trade, new infrastructure, transportation and logistics, smart farming, etc.
- Industry transformation 4.0 Automotive, Financial, Healthcare, Construction, Travel & Tourism, etc.)
The number of licensed cellular IoT connections in China stood at 672 million at the end of 2018, supporting various industrial and smart cities applications – GSMA Intelligence: The Mobile Economy China 2019 Report
[/stm_info_box]
REGULATORY ENVIRONMENT
- Lower barriers to entry in some markets due to various programs promoting entrepreneurship, SMEs, and startups for the 5G ecosystem.
- Un-served segments. I.e. MVNO wholesale support program in Korea and Japan = Getting everyone on-board
- Regulators supporting open and healthy competition including mobile number portability (MNP).
Pro: Japan, Singapore, Malaysia. Hong Kong, Australia, China, Korea, Myanmar, Lao PDR.
Con: India, Indonesia, Bangladesh, Vietnam, Philippines, Thailand.
[/stm_info_box]
CHANGE IN CONSUMER PATTERNS
- As markets mature they become highly segmented. Opportunities in niche/segmented markets require unique offerings rather than just competing on price and bundles.
- Higher bandwidth availability and smart handsets/device uptake with consumers seeking matching mobile-lifestyle services and offers.
- New and changing segments, in an already diverse population, due to urbanization, income gaps, tech skills, social pecking order, new gender definitions, political, etc.
Top-up options available today, along with longer device replacement cycles, limits the customer value, of operators handset subsidies and contract programs
[/stm_info_box]
ENTRY OF SPECIALIST MVNE’S
- Entry of turnkey MVNE solutions reducing the MVNOs upfront investments, and decreases the time needed to launch and operate.
- Multi-tenant platforms, and bulk purchase, resulting in Economies of scale, and thereby cost savings for the MVNO’s = Higher margins.
- MVNOs getting access to telecom platforms enabling them to launch real-time innovative packages and services to compete in the markets.
Mitigating complexity Many companies, with a strong brand, an existing large customer base or distribution network, are interested in becoming MVNOs, but unfamiliar with telecom technology
[/stm_info_box]
ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN)
- Increasing demand in business traveling and regional tourism: e-SIM, Dual or Multi-IMSI, I.e. MVNO Snail Mobile and Telin 2-in-1 SIM.
- MNO’s as MVNO’s to enter other markets via MVNO sub-brands i.e. China Mobile (CMLink) or Telkom Indonesia (Telin).
- Open markets, free trade and cross-border co-operation = New markets and lower barriers to entry.
ASEAN Members: Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. Combined Population: 651 million
[/stm_info_box]
MOBILE OPERATORS
- New and increased interest in partnering with MVNOs from the mobile operators, having witnessed case stories from Japan, Malaysia, and more recently in Singapore.
- As markets mature, competition shifts from network quality and coverage, to capitalizing on market differentiation with innovative offers to specific segment needs.
- MVNOs seen as front line special forces, who use their competitive edge, and own marketing cost to capture mutual market shares.
For BSNL in India, MVNO partners have become a vital part of its wholesale strategy. Same goes for CAT Telecom and TOT in Thailand, after end of their concession deals.
[/stm_info_box]
