Mobile Virtual Network Operators (MVNOs) have grown in strength and number for over two decades. However, the market has rapidly expanded within the last few years, bringing the market value to $81.42 billion in 2024. This is predicted to increase by more than double to $167.7 billion by 2034, spurred on by a new breed of non-telco brand-led MVNOs stepping into the mobile service provider arena.
Historically the launch of a new MVNO was not easy. The marketing spend and effort needed to compete with established mainstream MNO brands was a challenge, while extensive regulatory requirements, prohibitive upfront investments, and intricate mobile network operator legacy systems represented a deterrent for anyone outside of the mobile space.
However, with established MNOs increasingly needing MVNO revenue to recoup on 5G network investment and a swathe of industry advancements streamlining the path to success, the opportunity for non-telco brands to enter the mobile market is becoming clearer. The integration of mobile services into an established offering enables brands to gain competitive advantages, diversify revenue streams, and enhance the customer experience.
Arguably, brands with existing customer or subscriber bases are in a better position to do this than fresh MVNO brands with a purely telco focus. By harnessing existing customer data, they can provide a more personalised, tailored offering to reach niche consumer audiences that more established operator brands, or MVNOs with no current customer base, might not be able to. Take celebrity and influencer-backed MVNO launches, for instance, using mobile services to build and strengthen direct relationships with fans and customers that deliver far greater revenue potential than other, more traditional vehicles. Ryan Reynolds's involvement in Mint Mobile, with an estimated 25% stake, sets an excellent example of this - converting 3 million customers to the service.
Changing dynamics
None of this would have been possible without the technological advancements that have simplified the entry process for MVNOs, igniting a significant shift in market dynamics. Advances in network and cloud technology, new, streamlined processes, and the introduction of eSIMs have started to democratise the MVNO market, making it more accessible than ever before - even for brands and individuals without telco expertise.
With MNO retail revenue increasingly under threat and a pressing need to make good on the investments made in 5G, MVNOs are also able to find more willing network partners than ever before, while multi-tenant Mobile Virtual Network Enabler (MVNE) platforms make life far easier for the host MNO to manage MVNO tenants on the network.
Today, 'telco in a box' frameworks, off-the-shelf solutions, and MVNE platforms are advanced enough to equip anyone with the necessary knowledge to manage network integrations, built-in applications and automated workflows required, even without telco expertise.
e-SIM technology is also accelerating these changing dynamics by providing greater convenience and flexibility for consumers. By removing the logistical complexities relating to physical SIM provision, digital-only MVNOs are now able to launch in far shorter timescales and operate at a fraction of historical costs. Moreover, with consumers able to easily switch between providers to avoid high roaming charges or gain additional minutes or data at home when they reach existing plan limits, there is more scope for MVNOs to offer innovative propositions to win new business.
With the complexities and costs of entering the MVNO market, therefore significantly reduced, the focus has shifted to utilising the new capabilities offered by MVNE and BSS platforms. These platforms provide a unique opportunity to build versatile, custom-made, future-proof business models. The availability of white-labelled front ends and pre-made plans further simplifies and expedites the integration of mobile services into a brand offering. Moreover, the ease of focusing on operational strengths and utilising data analytics to refine propositions allows brands to continually adapt to the ever-changing consumer demands and technological landscape, ensuring their long-term success in the market.
Indeed, the ability to operate with agility and appeal to specific market segments has become central to MVNO success. Harnessing AI and automation to identify patterns for process improvements and better customer workflows is key, enabling greater levels of proactivity and improved value to the customer experience to drive revenues and engagement.
Success redefined
These changes have resulted in a huge diversification in the MVNO landscape on a global scale - from football teams launching their networks in Brazil and Spain to YouTube influencers and well-known celebrities adding mobile services to their portfolios. In the future, MVNE and BSS platforms will continue to offer a data-driven approach for brands that will catalyse innovation and bring about new business models for MVNO launches and allow brands to take this unparalleled opportunity to diversify their services by tailoring them to specific target markets and forge meaningful connections with consumers.