Analysis of the MNO Market by SVP Japan: Current Status and Future Outlook

Analysis of the MNO Market in Japan by SVP Japan

SVP Japan, based in Chuo-ku, Tokyo, has recently published a detailed report on the Mobile Network Operator (MNO) market in Japan. This report, exclusively available to its members, covers various aspects, including the present conditions and future outlook of the MNO sector.

Understanding the MNO Market

Mobile Network Operators play a crucial role in the telecommunications industry, providing data communication services for smartphones and IoT products. These companies, licensed by the Ministry of Internal Affairs and Communications, own their own base stations and communication networks. In Japan, the leading MNOs include NTT Docomo, KDDI Group, SoftBank, and Rakuten Mobile. While the market for personal contracts has reached saturation, there is a continuous rise in contracts for corporate smartphones and IoT communication modules, leading to an overall expansion in the total number of contracts. Although revenue experienced a temporary decline due to price cuts, it is expected to reach a bottom in 2024, followed by a gradual recovery starting in 2025 as prices rise and contracts increase. The push for digital transformation (DX) and expansion of the IoT sector continues to drive up the demand for communication services, prompting MNOs to explore new revenue opportunities, especially in the corporate sector.

Market Dynamics of the MNO Sector

The competition among the four major MNOs in Japan remains fierce. NTT Docomo anticipates a positive shift in mobile number portability (MNP) in 2024, and its average revenue per user (ARPU) has started to stabilize. The introduction of new pricing plans, such as “Docomo MAX” and “Docomo mini” in 2025, aims to enhance the value-added services offered to customers.

On the other hand, KDDI Group leverages its three brands - “au,” “UQ mobile,” and “povo” - to expand both contracts and ARPU through entertainment collaborations and new satellite communication services. Despite the discontinuation of its 3G services, SoftBank has maintained a steady growth trajectory, particularly with its “Y!mobile” brand and stable demand for corporate services and IoT modules. Rakuten Mobile has successfully expanded its contracts and ARPU through collaboration within its group, achieving a single-month profit in 2024 and aiming for an annual profit in 2025. The MNO market is on a growth trajectory again, bolstered by rising demand from both individual and corporate customers.

Structure of the Report

The report consists of the following sections:
1. Definition of the market
2. Market trends
3. Market size and forecasts
4. Market share
5. Dynamics of the companies involved
6. Industry structure

Subscription Information

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About SVP Japan

SVP Japan operates with the mission of making important business knowledge more accessible. As a provider of membership-based business information services, SVP offers quick research based on published business information and custom project research to its member companies. Founded in Japan in 1974, SVP has established a network that extends to 40 countries and supports decision-making for major companies through strategic information. In 2021, the company underwent a management overhaul to strengthen governance, expand information services, and aim for a new beginning as part of its business succession.