Seizing the MVNO and MVNE Growth Opportunity in the APAC Region
Wholesale telecom providers know these two things:
Telco revenues, generally speaking, are either stable or in decline
Costs are increasing, squeezing telco’s existing margins
Which leads providers to the third thing they know: They need to find new revenue streams. That means building new business models and monetising their existing network assets in new ways, leveraging technology like 5G, eSIM and generative AI.
This makes the mobile virtual network enabler (MVNE) business model an attractive one for many wholesale telecom companies. They can leverage their extensive network infrastructure and provide a platform for innovative service offerings. The MVNE model helps telcos expand their overall market reach and drive new revenue growth.
Where we’re seeing particular growth potential for mobile virtual network operators (MVNOs) and the MVNEs that support them, however, is in the Asia-Pacific (APAC) region. For the telcos that can quickly capitalise on the opportunity, APAC—with its diverse and fast-growing markets—offers tangible opportunities for MVNO/MVNE growth.
The APAC Hotbed of MVNO Opportunity for Wholesale Telecom
The MVNO market in APAC is estimated to grow at a CAGR of 6.75% between 2024 and 2030, expanding to a market size of nearly $100 billion U.S. Several factors are contributing to this, including:
Untapped customer segments. Countries like India, Indonesia and the Philippines are seeing a surge in mobile subscribership thanks to their rapid 5G adoption and smartphone penetration . This growth in mobile connectivity presents fertile ground for MVNOs to target underserved and niche markets.
Regulatory support. Many governments across Asia are providing favourable conditions for MVNOs, such as promoting competition and helping to reduce barriers to entry. For example, Japan has actively promoted MVNO s and provided guidance on licensing, spectrum allocation and interconnect arrangements.
Technological advancements. APAC is adopting 5G and IoT technologies at an accelerated pace, creating new avenues for MVNOs to offer differentiated services. MVNOs, known for being nimble, are especially well-positioned to foster innovation with these technologies.
New entrants. We’re seeing more companies in non-telco verticals looking to add telco services as a powerful adjunct to their core businesses. This is particularly true in APAC, with banks, supermarket chains, utilities providers, insurance companies and other businesses interested in offering connectivity to their large customer base.
