5G policy and its implications for Mobile Virtual Network Operators (MVNOs)

The presentation discusses the impact of 5G policy on Mobile Virtual Network Operators (MVNOs), particularly in Japan. It highlights the transition from 4G to 5G as a revolutionary change in network architecture and explores the challenges faced by MVNOs in adapting to 5G, including the need for new interconnection models and increased flexibility. The speaker emphasizes the importance of MVNOs actively participating in 5G standardization efforts to navigate this transition and ensure their continued relevance in the evolving telecommunications landscape.

Japanese MVNO Market

• 00:00:48 The Japanese MVNO market has seen significant growth, with a market share of nearly 60%, including various business models such as cooperative and competitive operators. The competitive MVNO market share is around 10%, indicating that the majority of customers utilize services from Mobile Network Operators (MNOs). Despite a revenue drop in 2021 due to hyper-competition, revenue is recovering, driven by the strong growth of B2B businesses related to the Internet of Things (IoT).

Types of MVNO

• 00:13:18 MVNOs are categorized into three business models: branded reseller, light MVNO, and full MVNO. Branded resellers have a simple business model that primarily focuses on retail and branding. Light MVNOs have more control over price plans and manage parts of the mobile core network, allowing them to compete with MNOs. Full MVNOs operate more core network functions and can issue their own SIM cards, providing greater flexibility in the IoT era.

5G & MVNO Interconnection

• 00:22:13 The transition to 5G presents unique challenges for MVNOs due to the new service-based architecture and cloudification of network operations. The traditional interconnection models between MNOs and MVNOs, particularly for light and full MVNOs, may hinder the integrity of the 5G core network orchestration. This necessitates a re-evaluation of interconnection models to support the new 5G environment.

5G Policy & MVNOs

• 00:23:35 ITU Study Group 3 established a work item to address 5G related policies and their implications for MVNOs. The resulting technical paper provides guidance for national regulators in developing 5G MVNO guidelines and emphasizes the need for MVNOs to bridge the gap between 4G and 5G standalone networks. The speaker encourages MVNOs to participate in standardization activities for 5G and beyond to ensure a smoother transition.