Asia-Pacific dominates MVNO activity over next five years

Melbourne, 14th September 2010. Global MVNO connections are forecast to increase from 52.6 million in 2009 to 85.6 million in 2015, representing a compound annual growth rate (CAGR) of 8.5%, according to a new Ovum report “Global MVNO Outlook 2010-2015”.

The bulk of this growth will come from Western Europe, the US, and mature mobile markets in Asia-Pacific such as Australia. These regions will continue to dominate global MVNO activity over the next five years. In Asia-Pacific, Ovum expects MVNO revenue to total to USD 980 million by 2015, an increase of 10% from 2010. By 2012, Australia is predicted to account for 30% of MVNO revenue leading the Asia-Pacific region, followed by Japan. Ovum predicts MVNO revenue in Asia-Pacific will spike in 2013.

“MVNO revenue in Asia-Pacific is expected to gather pace thanks to continued strong subscriber gains in leading MVNO markets, such as Australia, New Zealand, Japan and Malaysia,” says Nicole McCormick, senior analyst, Ovum. “In Australia, MVNOs have found success tapping the prepaid market, marketing services to specific market segments. Other successful MVNO strategies include bundling mobile with fixed line services, while more MVNOs are offering data as well as voice services, including the iPhone.”

The second reason MVNO revenue is tipped to jump from 2013 is because MVNOs are due to debut in new markets for the first time beginning next year.

“The next markets to introduce MVNOs in Asia-Pacific are expected to be India, Pakistan, and Vietnam in 2011,” added McCormick.

“For operators who missed out on the recent 3G auctions in India, MVNO deals with 3G network operators will become an alternative strategy to increase data revenue. Likewise, 2G operators that won patchy 3G spectrum can also pen similar wholesale agreements to plug their 3G gaps.”