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KISDI 정보통신정책연구원

KISDI 정보통신정책연구원

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KISDI Premium Report

The effects of competition on MVNO in mobile industry

  • Author(s)Minhee KIM
  • DownCount25
  • PreviewCount24
  • VolKISDI Premium Report 23-09
  • Pages1-30
  • PubDate2023-12-21
  • Files PDF preview PDF download

Abstract

MVNO rely on access to host mobile operators networks to provide mobile connectivity. In 2022, MVNO has expanded the number of subscribers and accounts for 13.4% of the mobile communication market in OECD countries. However, the growth of MVNO is slowing down as MNO merges with MVNOs MVNOs transforms into MNOs. In this report, we analyze the impact of the change in the competition in mobile industry such as new MNO entry and MNO M&As on MVNO growth.
The estimated results show that the entry of new MNO in OECD countries increase the sub-brand MVNO market shares, but have no significant effect on the independent MVNO market share. This is because existing MNO launch sub-brand MVNO following the entry of new MNO. On the other hand, mergers and acquisitions between MNOs increase the independent MVNO market share because the EC imposed MVNO access obligations as a condition of licensing for fear that M&A between MNOs would limit competition. However, as the mandatory period recently expired, disputes between MNO and MVNO arose in countries such as Austria, leading to the intervention of regulatory agencies.
In Korea, the MVNO access obligation was imposed in 2010 and has now expired, but disputes between business operators have not yet been observed in the market. Referring to overseas cases, the MVNO access obligation may be expired if the market is judged to be competitive, but without sufficient review, a dispute between MNO and MVNO may occur if lifted. Accordingly, it seems necessary to make a policy decision after sufficient preliminary review, referring to cases of imposing and lifting MVNO access obligations in major countries.