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Pyramid Point: Chinese Regulator Opens Up to MVNOs

Source Pyramid ResearchSource Pyramid Research

On January 9, the Chinese telecom regulator commenced a month-long consultation, paving the way for the advent of mobile virtual network operators (MVNOs) in China, potentially increasing the total number of operators from three to nine by June 2013, according to a new research note from Pyramid Research Analyst Hansang He.

Read the full Pyramid Point here.

“According to Pyramid Research‘s mobile data forecast, China is en route to grow its wireless subscription base from 1.1 billion in 2012 to 1.8 billion in 2017, a CAGR of 9.4 percent, almost doubling its total wireless market value to US$216 billion by the end of period,” says He. Leveraging the neighboring Hong Kong market as a benchmark, Pyramid estimates MVNOs in China will capture nearly 5 percent of total mobile subscriptions within five years of launch, reaching 90 million subscriptions. “This move will create sizable opportunities in the Chinese market for new players, with a cumulative revenue opportunity of between $9.5 billion and $13 billion between 2013 and 2017, assuming MVNOs are able to generate ARPU levels between 45 percent to 60 percent of average market mobile ARPS,” he adds.

Read the full Pyramid Point here.

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