MVNO Market Raises Fair Competition Concerns as Large Conglomerates’ Financial Muscle Grows; Citizens' Coalition for Economic Justice Says Government Must Put in Fundamental Measures
TECHWORLD ·
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The number of personal mobile lines in the domestic MVNO market increased to 7.7 million in 2022, 8.89 million in 2023, 9.67 million in 2024, and 10.25 million as of June 2025.
However, the market share of MVNOs operated by subsidiaries of the three mobile carriers, financial companies, and conglomerate affiliates stood at 51.8% as of June 2024, and small operators were said to be losing ground.
The Citizens' Coalition for Economic Justice argued that revisions to the Telecommunications Business Act and fundamental government measures are needed.
The domestic MVNO market is growing as the number of lines rises every year. According to industry sources on the 29th, the MVNO market continues to expand. Based on the Telecommunications Policy Research Lab's "2025 Telecommunications Market Competition Assessment," the number of personal mobile lines in the MVNO market was tallied at 7.7 million in 2022, 8.89 million in 2023, 9.67 million in 2024, and 10.25 million as of June 2025.
However, alongside market growth, concerns have also been raised that the competitive structure is being reorganized around large corporations. Based on data from the Ministry of Science and ICT in June 2024, the market share of MVNOs operated by subsidiaries of the three mobile carriers, financial companies, and conglomerate affiliates stood at 51.8% based on mobile lines. These operators are engaging in aggressive subscriber acquisition competition backed by financial strength, brand power, distribution networks, and marketing capabilities, and this has been assessed as leading to rapid gains in market share.
In the domestic MVNO market, the growing influence of subsidiaries of the three mobile carriers, financial companies, and conglomerate affiliates is squeezing the market position of smaller operators. As a result, concerns have also been raised that competition in the MVNO market could weaken over the long term. The Citizens' Coalition for Economic Justice argued that the government needs to come up with fundamental measures.
In the "2025 Telecommunications Market Competition Assessment," the Telecommunications Policy Research Lab presented changes in the market shares of MVNOs operated by subsidiaries of the three mobile carriers and small independent MVNOs based on personal mobile lines, confirming the trend of expanding market share among subsidiaries of the three carriers. Based on personal mobile lines, the market share of SKT subsidiary MVNOs rose from 1.1% in December 2023 to 1.2% one year later, KT subsidiary MVNOs from 3.1% to 3.5%, and LG Uplus subsidiary MVNOs from 2.7% to 2.8%. The market shares of all three carrier subsidiaries increased, and KT subsidiary MVNOs posted the largest increase among the three carrier subsidiaries, with a 0.4 percentage point rise in market share over one year.
Over the same period, the scale of small independent MVNOs did not decline. The market share of small independent MVNOs rose from 7.8% to 8.3%, while the combined market share of the three carrier subsidiaries also expanded from 6.9% to 7.5%. As a result, although small independent MVNOs grew, the combined share of the three carrier subsidiaries also increased, showing that the influence of incumbent telecom carriers continues to expand.
The MVNO market was introduced to check the market dominance of the three mobile carriers and ease consumers' telecom cost burden. However, concerns have been raised that the influence of subsidiaries of the three carriers and conglomerate-affiliated operators could continue to expand in the MVNO market. In that case, the effect of promoting competition through small and medium-sized operators could weaken, according to the concerns.
The Citizens' Coalition for Economic Justice pointed out that the growing share of conglomerate-affiliated operators could weaken the competitive environment for smaller operators. The issue raised targets aggressive sales strategies that leverage large corporations' financial muscle, such as recent "0-won rate plans" and telecom products sold in combination with financial products. It said subscriber acquisition competition has continued under such aggressive sales strategies.
The Citizens' Coalition for Economic Justice explained that lower rates and various benefits could increase consumer convenience in the short term. However, it noted that small and medium-sized operators are at a disadvantage in terms of financial strength and existing customer base, making it difficult for them to compete in the same way. It added that if cutthroat competition drags on, the market's competitive foundation could weaken.
The Citizens' Coalition for Economic Justice said the entire MVNO industry swung from a profit of KRW 29.6 billion in 2023 to a loss of KRW 25.8 billion in 2024. It said profitability has worsened and subscriber stagnation continues, with some small operators considering withdrawing from the business or closing down. It added that, as a long-term result of this trend, consumer choice could shrink.
It was pointed out that if the exit of small operators continues, the damage could be passed on to consumers. The direction of market restructuring could shift toward a small number of conglomerate-affiliated operators, and restructuring centered on conglomerate affiliates could lead to less competition among operators. In the long term, concerns were also raised that the competitive effect of the MVNO introduction, which was intended to promote competition in the telecom market, could weaken.
The Citizens' Coalition for Economic Justice said that, beyond the external growth of the MVNO market, it is necessary to examine market dominance structures, the sustained competitive viability of small and independent MVNO operators, and whether consumer choice can be guaranteed over the long term. It also said the government needs to prepare fundamental measures to resolve the structural problems in the MVNO market.
The Citizens' Coalition for Economic Justice argued that revising the Telecommunications Business Act should be pushed ahead with as a priority. It said the purpose of revising the Telecommunications Business Act is to manage the market share and market dominance of subsidiaries of the three mobile carriers in the MVNO market, and that institutional measures such as sunset provisions are needed for this purpose. It also said it is necessary to examine the impact of financial companies entering the telecom market and bundling sales on fair competition and consumer choice, improve the distribution and marketing environment for the sustained competition of small and independent MVNO operators, and prepare user protection measures in anticipation of operator closures and withdrawals.
Source: TECHWORLD · Kim Hye-jin
Original: https://www.epnc.co.kr/news/articleView.html?idxno=407490
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Source: TECHWORLD
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