Recent Trends and Future Prospects of the Low-Cost Smartphone (MVNO) Market in Japan

Analyzing the Japanese Low-Cost Smartphone (MVNO) Market

In a recent report released to its members, SVP Japan provides a comprehensive analysis of the low-cost smartphone market in Japan, focusing particularly on Mobile Virtual Network Operators (MVNOs). An MVNO operates by leasing network access from traditional telecommunications carriers (MNOs) and then providing SIM services for smartphones and IoT devices at a more affordable price. Since the mandatory SIM unlocking regulation for MNOs was implemented in 2015, a wave of new entrants has significantly expanded the market. As of now, despite the competitive pressure from sub-brands of major carriers, the sector has demonstrated resilience due to increasing corporate demand and the growing use of IoT applications.

Current Market Dynamics

The MVNO market in Japan is experiencing substantial growth, with an estimated 15 million contracts projected for 2024, and even further expansion expected by 2027. The report emphasizes that Internet Initiative Japan (IIJ) currently leads the market in terms of contracts, bolstered by the rising demand from corporate clients. They have successfully launched various plans, including high-capacity options like the