Analysis: At Least 30 MVNOs in China in 2015 with 50 Million Subscribers
Source: cn-c114.net View: 249 Date: 2014-06-19

At 2014 Mobile Virtual Operator Summit, the director of Market Management and Research Department of MIIT, China Academy of Telecommunication Research, Xu Lidong said, it is predicted that until the end of pilot program in 2015, MVNOs may have developed to 30 at least with 50 million subscribers in China, taking up about 3% of mobile market share.

Xu said, the whole China market is quite favorable for MVNO development, and they just catch up with the wave of mobile internet development. Related global industry experience shows that, as smart devices penetration rate exceeds 50%, mobile internet will develop into a rapid growth stage; moreover, there may appear varied commercial modes under the circumstance of rapidly increasing data traffic.

According to MIIT statistics, up to the end of 2013, smart devices penetration rate in China has reached 40.8%, predicted to exceed 50%. Besides, as people changing their user habits, monthly data traffic consumption of single subscriber in China is keeping an annual 100% growth speed.

Meanwhile, the main operators’ open attitude provides the development basis for MVNO. At present, China Telecom opens up about 100 cities to private firms as MVNO pilot places; China Unicom opens more than 300 cities. The pilot networks of 19 firms which achieved partnership with China Unicom and China Telecom and obtain the license, have exceeded more than 100.

Furthermore, China MVNOs are different industries which rarely compete directly with each other; they would collaborate in unison instead of traditional operators’ competition.

 

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