The mobile connectivity market in Malaysia is at full capacity. By the beginning of 2025, there were approximately 43.3 million mobile connections, representing about 121% of the country’s population. Amid this scenario, mobile virtual network operators (MVNOs) serve as significant value creators, unlocking new market segments, introducing differentiated offerings, and ultimately enhancing mobile connectivity throughout Malaysia.
According to recent industry reports, the size of the Malaysian MVNO market was approximately $0.8 billion in 2025, and it is projected to reach $1.06 billion by 2030, growing at a compound annual growth rate (CAGR) of 5.75% during the forecast period (2025-2030).
The continual transition towards a dual-wholesale 5G model has eliminated the unclear pricing that previously hindered the growth of virtual operators, providing a new impetus for the MVNO market in Malaysia. Operators are now resorting to cloud-native operational support systems/business support systems, eSIM-only distribution, and satellite-terrestrial convergence to venture into new markets and reduce operational costs.
Increased digitization in the enterprise sector is consequently enlarging the average revenue per user in the business-to-business (B2B) market. Simultaneously, ultra-low-cost prepaid plans have boosted subscriptions on the consumer side. Government initiatives like JENDELA are keeping infrastructure expansion on track, reaffirming the possibility for the Malaysian MVNO market to sustain moderate compound growth throughout the decade.
Regarding deployment models, cloud accounted for 70.51% of the revenue in 2024, with a forecasted CAGR of 10.14% through 2030. As for operations, reseller and light MVNO formats held a 62.33% share in 2024, but full MVNO structures are predicted to grow at a CAGR of 19.19% through 2030.
An MVNO offers mobile services to customers by leasing the network capacity from an existing mobile network operator (MNO), thereby eliminating the need for owning infrastructure. This approach presents several advantages in Malaysia:
– MVNOs facilitate market entry for new service providers, encouraging existing MNOs to innovate their strategies, satisfy niche market needs, foster competition, and provide consumers with more choices.
– As 4G improves and 5G is introduced, MNOs with extra network capacity can collaborate with MVNOs to utilize this surplus, thus helping them recover some of the costs associated with building and maintaining their networks.
This year, MVNOs have gained considerable traction in Malaysia. In particular, CMLink, an MVNO by China Mobile International Limited (CMI), was launched on the Maxis network in Malaysia, allowing CMI to offer services like “one card, multiple numbers” and data sharing between China and Malaysia. This demonstrates how MVNOs can cater to cross-border and traveler markets.
The growth of MVNOs in Malaysia impacts the broader connectivity ecosystem in several ways. By allowing new and specialized brands to enter the market, MVNOs can cater to groups that are often overlooked, whether due to location, age, or service needs. More competition in the market gives consumers more options and compels MNOs to offer better prices, unique packages, and improved customer service.
For MNOs, collaborating with MVNOs enhances returns on their network investments. For example, U Mobile’s 5G network already covers 54.9% of populated areas, with higher coverage in urban areas. This ensures optimal utilization of the network’s capacity and supports investments in further coverage and new services.
For MVNOs to realize their full potential in Malaysia, the industry needs to concentrate on a few crucial areas:
– Wider Wholesale Access and Fair Pricing: MNOs need to continue expanding open and transparent wholesale access to enable more MVNOs to thrive in Malaysia.
– Consistent Network Experience: Regulators and the industry must ensure that MVNO customers receive the same service quality as MNO customers, especially during peak times.
– Sustainable Differentiation: MVNOs offering more than just basic plans, like value-added, niche or cross-border services, are more likely to succeed.
– Targeting Underserved Regions: MVNOs can help bridge the connectivity gap, particularly in rural Malaysia, using a shared infrastructure model.
– Regulatory Support: The government and regulatory bodies can aid MVNOs’ growth by simplifying licensing and endorsing consumer-friendly policies.
In conclusion, by leveraging the established infrastructure of major network operators, Malaysian MVNOs are expanding connectivity to underserved demographics, reducing costs, and sparking innovation in niche segments. This diversification enhances competition and consumer choice, aligning with the national connectivity goals outlined in the Malaysia Digital Economy Blueprint (MyDIGITAL), which targets near-universal connectivity by 2030.
– What is the projected growth rate of the Malaysian MVNO market?
The market is expected to grow at a compound annual growth rate (CAGR) of 5.75% from 2025 to 2030.
– What impact do MVNOs have on the mobile connectivity market in Malaysia?
MVNOs facilitate market entry for new service providers, stimulate competition, provide consumers with more choices, and help MNOs recover some of the costs of building and maintaining their networks.
– What are some key areas the industry needs to focus on for MVNOs to realize their full potential in Malaysia?
Key focus areas include wider wholesale access and fair pricing, ensuring consistent network experience for MVNO customers, enabling sustainable differentiation in MVNO offerings, supporting MVNOs in targeting underserved regions, and offering regulatory support.
