From the explosive growth of travel eSIM services to retailers such as Lidl exploring the launch of up to 30 MVNOs across Europe with 1GLOBAL, and digital-first brands like Monzo and Klarna reportedly considering market entry, the future looks bright.

Latest market data reinforces the optimism. Prescient Strategic Insight predicts the global MVNO market will grow from a value of $92 billion today to $155 billion within the next three years. These figures highlight not only the scale of the opportunity but also the pace of innovation and entrepreneurial ambition that continues to drive the industry forward.

Regulators play a significant role

A significant factor behind this expansion is the role regulators are playing in fostering competition and encouraging innovation.

In developing telecommunications markets, where greater consumer choice is needed, regulators are increasingly issuing licences and mandating wholesale network access. 

These measures help create opportunities for new entrants while challenging incumbent operators to sharpen up their efforts and deliver better services, lower prices, and more innovation.

The same trend is evident in mature markets. As network operators continue to consolidate through mergers and acquisitions, regulators frequently look to MVNOs as a mechanism for preserving competition. 

Across several European markets, regulatory remedies have included mandatory MVNO access agreements and, in some cases, regulated wholesale commercial terms. Regulators understand that a well-executed challenger MVNO can transform market dynamics and deliver significant value to consumers.

A compelling example is Walmart’s Bait in Mexico. By leveraging its extensive retail footprint and integrating mobile services with customer loyalty programmes, incentives, and promotions, Bait has achieved an impressive 18% market share. Remarkably, it has surpassed two established mobile network operators in the process. This demonstrates the power of combining a strong brand, customer access, and a differentiated proposition.

Innovation is also emerging in other areas. Honest Mobile, for example, has addressed one of the most persistent frustrations faced by UK consumers: inconsistent network coverage. 

Its solution allows customers to access multiple networks through a single SIM, providing greater reliability and flexibility. It is a simple yet highly effective response to a real consumer problem.

Beyond consumer-focused offerings, there are numerous success stories in the enterprise sector. MVNOs are increasingly being developed to support innovations in IoT, connected devices, and wearable technology. These specialised providers demonstrate that MVNOs can take many forms, serving a wide range of customer needs and business models.

But what unites these success stories is a shared mindset. A belief that existing solutions can be improved. By identifying genuine market gaps and delivering something better, many MVNOs have managed to challenge incumbents and reshape customer expectations.

But you need more than a good idea to succeed

However, having a strong concept is only the beginning. While innovation is essential, it is far from the only ingredient required for success.

Launching an MVNO is a complex undertaking that involves significant commercial, operational, and technical challenges. Successful providers invest heavily in understanding customer behaviour, negotiating competitive wholesale agreements, and designing robust technical architectures capable of delivering on their promises. None of this happens by accident.

The challenges do not end once the service launches. Attracting customers and maintaining momentum in the market requires continuous effort. The idea that simply building a product guarantees customers will come is one of the biggest misconceptions in the industry. Successful MVNOs are restless when it comes to keeping their brand visible, relevant, and compelling.

Travel eSIM opens a new world of MVNO

One of the most exciting growth areas is undoubtedly the travel eSIM market.

Travel eSIM propositions are now being adopted across travel, transportation, retail, and fintech sectors. Their appeal is straightforward: they provide international travellers with simple, affordable connectivity while eliminating expensive roaming charges.

Consumers increasingly view connectivity as an essential travel product, purchased as easily as hire cars or sangria. Travellers actively compare providers and seek the best value, creating opportunities for brands that can deliver attractive, easy-to-understand offers.

The most successful propositions often combine connectivity with complementary travel services. Bundling eSIM packages with competitive foreign exchange rates, digital wallets, or airline bookings creates a seamless customer experience that adds genuine value.

Perhaps more importantly, travel eSIMs serve as an ideal gateway product. They offer new entrants a relatively low-risk route into the telecommunications market while solving a clearly defined customer pain point. 

Once a brand has established trust and demonstrated that customers are willing to buy connectivity services from them, it creates opportunities to expand into more sophisticated primary SIM offerings.

This phased approach enables brands to build customer relationships, refine their propositions, and gradually increase lifetime value. It is a model that we strongly advocate and one that many of our clients are successfully pursuing. 

Even traditional mobile network operators are increasingly investing in travel eSIM solutions, further highlighting the strategic importance of this segment.

Being a winner takes time and energy

For every successful MVNO, there are numerous examples of businesses that failed because they focused on the idea rather than the execution.

Success requires strategic clarity, dedicated resources, and expert guidance throughout the development process. The most important question any prospective MVNO must answer is simple: Why would customers choose our service?

The strongest MVNOs succeed because they solve a genuine customer problem and clearly communicate how their solution differs from existing alternatives.

At Graystone Strategy, we encourage new MVNOs to follow a five-part structured development journey that begins with customer needs and user experience. Without a deep understanding of customer motivations, there is no viable business case. It becomes impossible to accurately forecast costs, margins, growth potential, or operational requirements.

Equally important, operators are unlikely to engage in meaningful wholesale discussions if the strategic foundations are weak. Network operators receive countless partnership proposals, and only those supported by clear commercial logic and market demand stand out.

The subsequent stages we recommend focus on technical delivery and operational execution. While technology is often the most visible aspect of an MVNO launch, it should never overshadow the customer proposition. The best technical solutions are often those that create the simplest and most seamless user experiences.

Always be selling

Finally, long-term success depends on sustaining brand relevance and continuously acquiring customers. Too many businesses underestimate the ongoing investment required to market and grow their proposition. Building awareness and maintaining momentum should never be an afterthought.

This is where expert advice can make all the difference. If you believe you have identified a market opportunity, engage with industry specialists early. Validate the concept, build the business case, and refine the strategy before entering negotiations.

Better still, bring experienced advisors into wholesale discussions and contract negotiations. Their expertise can significantly accelerate the journey to market and improve commercial outcomes. In a sector growing as rapidly as MVNOs, that investment could ultimately determine whether you become part of the industry’s success story or simply another example of what happens when opportunity is not matched by execution.Need help ensuring your idea doesn’t fade after launch? We can help, either with our detailed masterclasses on the steps you need to take, or by becoming an extension of your team, developing go-to-market strategy and proposition development. Contact us to find out more.

The post A good idea for an MVNO is only that. It takes negotiation, execution and dedication to be a success. appeared first on Graystone Strategy.

It is never an easy question to answer. Wholesale contracts are complex documents covering everything from commercial terms and service levels to customer support, billing arrangements, and regulatory obligations. There is rarely one clause that outweighs all others.

However, if I were compiling a list of the five most important clauses then one covering network and technology parity would undoubtedly be near the top.

Technology parity ensures that an MVNO can access the same network developments, upgrades, and future technologies as the host mobile network operator (MNO). In practical terms, it prevents MVNOs from becoming second-class providers operating on outdated technology while their host networks move ahead.

More importantly, parity provides a foundation for fair competition. It allows MVNOs to build propositions, customer experiences, and brands based on consistent service quality rather than constantly trying to explain why their offering lacks capabilities available elsewhere in the market.

As the industry enters a new phase of innovation, that protection has never been more important.

The growing momentum behind direct to device satellite communications (D2D) demonstrates exactly why technology parity matters.

Right now, we are seeing operators investing heavily in technologies designed to extend connectivity beyond the reach of traditional mobile networks. Direct satellite connectivity promises to deliver mobile services in remote locations, rural communities, vast landscapes and seas.

That’s why telecommunications authorities around the world are evaluating how satellite and terrestrial networks can coexist while protecting existing spectrum users and ensuring public safety.

In the UK, Ofcom has taken significant steps by authorising the use of mobile spectrum to support direct satellite-to-mobile services and also outlining the conditions under which those services can operate. Companies deploying satellite connectivity will be expected to implement measures that protect airspace operations and other critical services while delivering enhanced coverage to consumers.

Initially, many of these offerings are expected to focus on emergency communications and lightweight data services in locations where conventional mobile coverage is unavailable. For rural communities and travellers, that could represent a major step forward in connectivity.

Regulation creates opportunity

These developments highlight an important reality in telecommunications. Technology companies may drive innovation, but regulators remain the gatekeepers.

No matter how advanced a technology may be, it cannot achieve commercial scale until regulatory frameworks are established and market access becomes possible. Once those frameworks are in place, however, the flood gates open and we should expect the pace of adoption to accelerate remarkably quickly.

We are already seeing evidence of this across multiple markets.

In the United States, T-Mobile has been actively developing its satellite connectivity proposition. In the UK, Virgin Media O2 has begun promoting its satellite-enabled services following its agreement with Starlink. Vodafone has also announced customer trials scheduled for 2026 through its partnership with AST SpaceMobile.

Meanwhile, Deutsche Telekom has outlined ambitions to move beyond basic emergency connectivity and launch fully integrated data, voice, and video services via satellite by 2028.

Taken together, these announcements demonstrate not only the speed of innovation but also the scale of transformation that could occur over the next few years as regulators make their moves. 

Why MVNOs must pay attention

For MVNOs, the key takeaway is simple. The race has already started, and you need to be ready for when regulators fire the starting pistol in your jurisdiction. 

Not only that, as new technologies become commercially available, customers will increasingly expect access to them. As we know, connectivity innovations that initially appear niche often become mainstream far more quickly than anticipated – look at eSIM.

The challenge for MVNOs is to ensure the terms of their wholesale agreements support their next move.

If technology parity is already in place, gaining access to new capabilities can be relatively straightforward. If they are not, MVNOs may find themselves negotiating from the back foot and may need to secure entirely new agreements with their host networks or explore direct commercial arrangements with satellite providers. 

Negotiating direct, is of course an option, but as is often the case it’s often more time-consuming, more complex, and more expensive.

In many cases, the most practical first step is to engage with your host operator and explore opportunities for access. Wholesale partnerships are built on commercial relationships, and discussions are always worth having.

However, MVNOs should recognise that satellite-enabled services are likely to be viewed as premium products. Host operators and technology partners will be looking carefully at distribution strategies and selecting partners capable of bringing meaningful value to the market and recovering the investment they make.

Access alone is unlikely to be enough. MVNOs will need a compelling proposition and a clear plan for commercial success.

Understanding what parity really means

One common misconception is that technology parity guarantees identical commercial treatment. Never lose sight of the fact that parity and pricing are two very different things.

A technology parity clause is typically designed to ensure that an MVNO can access the same products, services, and technological advancements available to the host operator’s own customers. It does not guarantee is identical wholesale pricing.

In my experience, even where parity exists, there will almost always be separate commercial negotiations around wholesale costs. The introduction of new technologies often creates additional investment requirements, and operators will naturally seek to recover those costs too.

As a result, MVNOs must carefully assess the economics of any new service. Can the technology solve a meaningful customer problem? Does it create sufficient value to justify a premium price? Will customers be willing to pay for it? Can the proposition generate sustainable margins?

These questions remain just as important as securing access itself. And you must answer them for your business and be ready to give the answers to your host too.

Building contracts that grow with you

Perhaps the most important lesson here for MVNOs, is the need to think beyond today’s requirements. Many wholesale agreements run for five to ten years. In an industry evolving as quickly as telecommunications, five years can feel like an eternity. Technologies that seem experimental today, like satellite, will become standard. 

That is why wholesale agreements should not simply address current needs. They should provide protection against future uncertainty. Whether the issue is satellite connectivity, network upgrades, pricing changes, or entirely new categories of digital services, the principle remains the same. MVNOs must ensure they can remain relevant and competitive throughout the life of the agreement.

That’s why I continue to beat the drum on market parity, because those that fail to plan a contract around future developments risk being left behind.

That’s why we’re here to help. We can deliver masterclasses so you know how to negotiate effectively, or we can step into negotations for you and get the clauses you need to future proof your strategy. Talk to us today. 

The post Technology parity is a must for MVNOs today, here’s why. appeared first on Graystone Strategy.

The global MVNO market is currently worth around $95 billion and by 2035 it’s expected to grow to well over $190 billion. Staggering as these numbers are, I don’t believe they are hype.  

Growth is coming from across the world in both emerging and mature markets. 

In Latin America, Africa, Southeast Asia digital-first propositions enabled by ‘MVNO-in-a-box’ and SaaS solutions are creating opportunities for new entrants in emerging markets. 

Growth in the mature markets of Europe and North America is coming from enterprise IoT, targeted consumer propositions, and the fascinating trend of using mobile not just as a revenue stream, but as a critical part of the strategy to deepen loyalty with existing customers.

Just last month, Lidl and 1GLOBAL announced a partnership that will see the supermarket chain become an MVNO in up to 30 markets, embedding eSIM plans directly into its Lidl Plus loyalty app, which already has over 100 million users.

Then there’s Bait, Walmart’s MVNO in Mexico, proving the power of a focused strategy. It ended 2025 with 26.4 million active users, up 44% in a single year, adding 8.1 million subscribers, net.  

Bait has achieved this incredible growth by deeply integrating mobile into the Walmart retail experience. It’s a simple and effective proposition giving people free data with in-store purchases, supported by activation across 3,000 outlets. 

The results speak for themselves. Bait customers spend two and a half times more in Walmex stores than a non-customer. That statistic alone tells you everything about why retail and mobile are such powerful allies and how mobile has become a critical element to numerous brands’ growth strategies.

Neo-bank MVNOs are also gaining serious momentum. Revolut, Lendable, N26, Monzo, to name a few, are weaving mobile into their financial services ecosystems. 

And in the community space we have seen everyone from influencers to US presidents, sports clubs to religious groups embrace the MVNO model.

But the conference is not just a celebration of growth. It is a place where we interrogate the hard questions too, and this year there will be three critical themes. 

THEME ONE: THE SATELLITE QUESTION – OPPORTUNITY, RISK, OR INDUSTRY EARTHQUAKE?

Let me start with the one I think carries the biggest long-term strategic implications: Satellite.

In March, at Mobile World Congress in Barcelona, SpaceX took to the stage to unveil Starlink Mobile, its direct-to-device service. This followed T-Mobile’s launch of T-Satellite, in partnership with SpaceX, in 20025 with plans for next generation ‘V2 satellites’, targeting 5G-class speeds from orbit, in 2027.

Amazon is also getting in on the action with Amazon Leo, a low-Earth orbit broadband constellation targeting over 3,200 satellites. It’s currently working on partnerships to monetise this new asset. I don’t think Amazon will dabble in this market. It will dive in hard with every intention of disrupting the market by building a global network, just as they’ve done in retail, cloud computing, entertainment and logistics. 

So, at conference we’ll ask at what point does satellite connectivity starts to replace the mobile infrastructure of today. 

We have already seen WIFI take share of customers use in the home. Will we see satellite connectivity also taking traffic away from traditional networks, and if so, will they do it in partnership with operators or in competition with them?

This won’t happen today but it’s a question we need to be ready to answer. Experts agree that physics and economics make satellite a complementary technology to terrestrial networks at present, but V2 satellites promise one hundred times more data density than V1 and that is a whole new ball game. 

If satellite becomes an alternative provider, then the asset that operators have spent decades and tens of billions building and that MVNOs rely on could become redundant, or at least less crucial in some areas.

This brings risk and opportunity. On the risk side, Starlink’s current T-Mobile partnership explicitly excludes MVNO access, and we may well see this approach adopted more broadly.

If satellite capabilities are locked within operator brands, then MVNOs could find themselves excluded from a major new technology wave, exactly the scenario we at Graystone Strategy advise clients to contract against. 

Parity of access clauses in your wholesale agreement are not a nice-to-have; in a world of rapidly evolving technologies, they are protection against a very real threat.

On the opportunity side, this trend has the potential to significantly re-write how consumers access mobile telecoms. We could even see a world where every telecoms brand is an MVNO accessing connectivity from national radio network and satellite combined.

That type of shift needs innovative thinkers that can rip up the rule book and start again. That type of thinking is present at MVNOs World. As a community we are world champions at challenging the status quo and doing things differently.

THEME TWO: CONSOLIDATION – THE DOUBLE-EDGED SWORD

Europe’s mobile network operators have been pushing hard for permission to consolidate. They are being successful and generally, that’s bad for MVNOs as fewer operators means fewer potential wholesale partners. And less competition in wholesale almost always means higher prices and less favourable terms. 

But – and this is the critical counter-narrative – consolidation historically comes with regulatory remedies which are an important catalyst for MVNO growth. We have seen a range of remedy models deployed in the UK, Ireland, Austria and even the Channel Islands, all seeking to drive consumer competition through MVNOs.

We’ve also seen a more radical solution deployed in Mexico. The Red Compartida (Altan Redes) was effectively born from the need to inject wholesale competition into a market dominated by Telcel. Today, 83 MVNOs use that network, and it’s worth noting Bait built its entire 26-million subscriber empire on it. 

We’ll discuss in detail how MVNOs can manage these changing dynamics and refine strategy to ensure opportunity is maximised and the risks are minimised. 

THEME THREE: CHANGING CONSUMER HABITS – THE MARGIN SQUEEZE AND THE PROPOSITION OPPORTUNITY

The third theme is about how consumers are using their phones, from the changing use cases, technologies and attitudes to mobile, to the economics of mobile data.

Let me start with the economics. Data usage is going up. In 2025, 93% of operators globally saw growth in data usage per subscription. 

But here is the problem, ARPU is not keeping pace. Across all markets, we are seeing a growing gap between the cost of serving that data and the revenue earned from doing so. 

The result is a margin squeeze that is hitting MVNOs particularly hard, because MVNOs have the added layer of a wholesale cost they cannot fully control.

There are broadly two responses to the margin squeeze. The first is using tech to reduce operational costs. AI has a huge role to play here supporting a less costs more margin approach. 

The second, and in my view the more interesting, is the race to build propositions that escape the commodity trap entirely and grow value.

Which brings me to the second dimension of changing consumer habits, the social and cultural shift that is creating entirely new proposition opportunities for this industry.

Across the world, parents, governments and regulators are waking up to the impact of uncontrolled social media access by children. Australia has legislated a ban on social media for under-16s, and many more countries are putting this issue under the microscope.

This is not just a policy trend. It is a consumer behaviour shift. More parents are actively looking for technology solutions that keep their children connected AND protected.

They want their kids to have a phone, but not a portal to unregulated content. They want to give independence while maintaining visibility, and they are willing to pay a premium for that reassurance.

Spacetalk, an Australian MVNO and technology company, has created a proposition purpose-built for families offering child tracking, check ins and full parental content controls. 

This allows kids freedom, but within parental guardrails, making parenting in this digital age just a little less stressful. Spacetalk is pursuing white label deals on its technology, already securing one with Vodafone Australia. For pioneering MVNOs, there’s a huge opportunity to seize on this openness to partnership. Done well it has the potential to overcome the ARPU squeeze. 

The trick MVNOs need to take from this is not to compete on price for the same generic data plan but identify a segment with a specific pain point and build a proposition so differentiated that price becomes secondary to value. 

It’s also a reminder that cost cutting isn’t always the way to go and building customer relationships is. 

So, there you have it three themes for congress, and as we’ll no doubt discuss, endless possibilities for success. 

If you would like to discuss how you adapt your MVNO’s strategy to address one or more of these themes then drop us a line, we’re happy to meet for a coffee during the conference, or a video call afterwards. 

The post Satellite, consolidation and ARPU – the hot topics at this year’s MVNOs World appeared first on Graystone Strategy.

Revenue is vanity, margin is sanity.It’s an old adage, but one that holds true for the MVNO Market.

When we speak to MVNOs, they can often think the garden looks rosy. They are growing customer numbers, share and the total revenue metrics are good. But look a little closer and it soon becomes apparent that margins are under acute pressure. Just about every established MVNO I talk to are trying to overcome the squeeze and it’s moving higher up the priority list.

The post Margin Under Pressure: How Mature MVNOs Stay Profitable and Keep Growing appeared first on Graystone Strategy.

In terms of strategy, no. I think we could see it from a mile away. Timing wise, yes. To do it a year on from officially merging two brands was sooner than I, and no doubt markets and analysts, had expected. 

The deal is made up of a £4.3m cancellation of shares and an anticipated £700m cost and CAPEX saving. A decent chunk of change in anyone’s book.

This will be realised by bringing the 100% owned company into the Vodafone Group and leveraging ‘synergies’ and, undoubtedly benefits from technical consolidation.

There are other upsides. The big one being it will neutralise the political concerns about Chinese ownership of critical infrastructure. This is likely to sit well with large enterprise too.

Yesterday, I was asked if I thought this would trigger additional CMA interest.

My gut reaction is that it won’t. There is no real change for consumers, and you could argue that consumers will do better out of the leveraging of intra Vodafone Group benefits. 

Plus, originally there were some substantial competition remedies on the table to ensure consumer and wholesale competition remains at a level comfortable for the CMA.

Which leads me to unpacking another anniversary present / question. One year on, how effective have the remedies been?

Avid readers of my blogs during the run up to, and announcement of the merger will know that remedies were as follows:

1. Investment plan of £11bn to create the largest 5G SA network. This had to be delivered in 8 years with key milestones over that period.
2. Special tariffs that were identified as good value for cash challenged households must be retained for 3 years (2 years left now).
3. A commercial deal was done to allow the merged entity to remain in the site sharing agreement with O2, which involved O2 buying some spectrum from Vodafone Three.
4. A regulator wholesale reference offer was approved, the aim being to maintain competition in wholesale markets. Existing MVNOs also benefitted from some wholesale carve out.

So, has it been successful? At a general level, I would say the UK market is still competitive. The Three brand is still trading and advertising, and as a consumer I haven’t seen a massive price hike, above the usual inflationary increases that the MNOs level (MVNOs not so much). 

I am a Vodafone customer and have been since I started working for them in 2002, and overall I think I have seen improvements in coverage locally through the network sharing and deployment of MOCN.

We haven’t seen the massive MVNO bonanza as I was expecting. But then it’s only been a year.

But, we have seen launches mostly via MVNAs such as eSIMGo, Gigs and Gamma. This includes brands such as Zim, Tekmoni, Rocket mobile, Millwall and other football brands.

In terms of larger multinationals, Gigs has enabled Revolut on Vodafone Three, which is part of a broader mobile strategy across multiple markets. Interestingly, Revolut has used 1Global in other markets so there is healthy competition in Europe.

And we shouldn’t forget the 1Global deal with Lidl which is expected to bring up to 30 MVNOs globally. The UK is likely to be one market that Lidl seeks to build on its increasing grocery market share (8.5%) and a region where it can also integrate its loyalty app.

There have also been a large number of announcements of intent to launch, including AO, Monzo, Klarna and Netonmia.

Part of the remedies include the expectation that Vodafone Three will send an annual report to the CMA detailing progress against milestones and demonstrate that remedies are working as expected. We wait to see what comes out. 

Overall, I would say the wholesale market in the UK is still busy. Large brands are interested and 12 months is really early days, albeit we have used a third of the 3-year window for remedies. 

I would say the next 6-12 months are going to be critical and I am forecasting more, larger brands coming to market, which I’ll report on as they happen. 

So, all that remains to be said is ‘Happy birthday Vodafone Three’! Some surprises but largely expected performance.

The Graystone Strategy team is the official training partner at the MVNOs World congress, where we will deliver three masterclasses on all aspects of delivering a successful MVNO. They are free for conference attendees so be sure to secure your slot. And if you need help determining your MVNO strategy in the wake of this announcement, drop me a line. We’re always happy to give some initial advice. 

The post Vodafone Three’s buy out is no surprise, but what happens for MVNOs could be.  appeared first on Graystone Strategy.

Launching a retail MVNO is, of course, not a new idea. We’ve seen this happen all over the world. But I think it’s the scale that is breathtaking. It’s a huge statement of strategic intent from both sides, and a reminder that retail MVNOs remain one of the most powerful, and, in my opinion, underutilised, growth levers. 

Lidl’s ambition to leverage its retail footprint in multiple countries, combines ingredients successful retail MVNOs boast, including the option to distribute at scale and capitalise on high levels of consumer trust. 

Coupled with access to 1Global’s digital expertise, Lidl is on the road to creating a compelling mobile proposition that can be set directly into the retail experience.

The case for retail MVNOs

Looking back over the last five years, MVNO performance has rocketed and, in some countries, MVNOs post better growth than their operator hosts.  

Close to home, retail MVNOs account for over 40% of all MVNO subscribers in the UK. Tesco Mobile alone has over 5 million subscribers and has successfully expanded into Ireland, the Czech Republic, and Slovakia. 

Alongside it, brands like Asda Mobile, iD Mobile (from Currys), Coop Mobile, and Superdrug Mobile are showing that a close bond between the mobile and retail experience pays off. 

You don’t even have to be trading with shops either, as proved by AO’s announcement last June, that it too will launch an MVNO very soon. 

Internationally, the success stories are just as compelling. The standout example is the market disruptor Bait, Walmart’s MVNO in Mexico. It’s seen extraordinary growth and now holds the number two spot in market share, outperforming two established network operators. 

On the other side of the world, Aeon in Japan, and Woolworths in Australia, are great examples of retail MVNOs that work because they already had so many of the ingredients critical for a successful retail MVNO. 

So why do retail MVNOs work?

Having worked across multiple retail MVNOs, including iD in Ireland, Coop Mobile in the UK and Channel Islands, Asda Mobile, Superdrug Mobile, and even the now-retired Mobile by Sainsbury’s, I’ve seen firsthand what separates the successes from the also-rans.

It comes down to a few critical factors.

1. Unmatched customer access

The first, and arguably most important advantage is customer access.

Retailers like Asda and Tesco have tens of millions of customers passing through their stores every week. That level of engagement dwarfs what traditional mobile operators can achieve. Mobile is a low-frequency interaction; grocery retail is often weekly, if not more.

Retailers also typically enjoy significantly higher Net Promoter Scores (NPS) than telecom operators. In simple terms, customers like supermarkets more and are willing to switch to them for their mobile.

2. Low customer acquisition costs and high lifetime value

Retailers with stores are perfectly placed to convert footfall into SIM sales at a fraction of the cost incurred by traditional operators. They have the space in store to allocate to sales either as concessions, or SIM displays at checkouts, and the staffing is taken care of. Plus, with a steady stream of customers through the door, there’s no need for expensive above the line marketing campaigns to drive awareness and footfall.

This dramatically lowers customer acquisition cost (CAC) and gives retailers the flexibility to invest more in customer offers such as bigger data bundles, better loyalty rewards, and / or compete aggressively on price. 

Retail MVNOs perform exceptionally well on key metrics like margin per square foot. I’ve seen how a small footprint in-store can generate disproportionately high lifetime value (CLV), especially when compared to the relatively thin margins on everyday grocery items.

3. Integration with loyalty

The real magic, however, lies in integration. The most successful retail MVNOs don’t treat mobile as a standalone product. They embed it into the broader shopping experience. This is where many weaker propositions fall.

When mobile is linked to loyalty schemes, member pricing, or exclusive discounts, it becomes far more compelling. Customers aren’t just buying a SIM, they’re unlocking additional value with a retailer they already engage with and trust.

And the benefits are felt both ways. Mobile drives retail, and retail drives mobile. As not only does the MVNO generate incremental, recurring monthly revenue, but it also drives the core retail business. 

Some of the best retail MVNOs I’ve seen, incentivise customers to increase their visits to store, and how much they spend using loyalty point accelerators, discounts, and vouchers. This results in significantly higher retail basket spend and improved customer loyalty.

4. Customer perception is king

Trail blazers like Tesco and Aldi Talk legitimised retail MVNOs 20+ years ago and won over generations of consumers who only grew up with the option of a big operator. The latest generation of mobile users have never known a market without MVNOs. The net result is that brand loyalty to MNOs has waned, and there’s a readiness to switch to brands that are not traditionally associated with telecoms. 

Lidl and 1GLOBAL make for a winning combination 

Lidl knows it can achieve the same results. It brings enormous scale, a strong value-led brand, and a growing digital and loyalty capability, and when blended with 1GLOBAL’s technical infrastructure and international reach, they’ll be able to execute across multiple markets. 

And, dare I say, with brands like Revolut in the 1GLOBAL stable who knows where Lidl could branch out to. Banking and financial services is also a fast growth MVNO segment. I wouldn’t be surprised if there’s a longer-term strategy there. 

Whatever the future holds, for now they have the ingredients for a highly competitive retail MVNO proposition, and it should prompt other retailers, especially in the UK, to stop and think. 

There are plenty of brands with the scale, loyal customer base and infrastructure to make a retail MVNO work. Morrisons More, Boots and its Advantage card, and the various Co-operative groups, spring to mind as contenders. Even Sainsbury’s, despite the previous exit of Mobile by Sainsbury’s, could revisit the opportunity, particularly given the strength of the Nectar scheme today. 

Given the grocery market is so competitive and the challenger brands are not only taking share and winning the price wars but now sharpening their focus on growth through MVNOs, it would seem fool hardy for other retailers to be complacent.  

In my view, this will spark the next wave of retail MVNOs. Because when one retailer moves, others follow. 

20 years ago, retail MVNOs felt like a risk. Why would a brand take money from the business to invest in an unproven model, when you could build another store, refurbish one to add new product line or even buy a competitor?

But now the numbers stack up. The model is proven, with global success stories and strong underlying economics. We talk about their merit every year at MVNOs World because they work. Not only that, MVNOs work hard for their parent brands. 

For retailers sitting on the sidelines, the question isn’t whether this model works. It’s whether they can afford not to be part of the next generation of retail MVNOs. Those that dally, genuinely risk losing out to competitors on both customer numbers and incremental revenue.

So, if you want to be part of the new era but need help with the proposition, the business case, technology choices, or wholesale contract, then Graystone Strategy can help. Our team have negotiated and launched many successful retail MVNO and are perfectly placed to get your strategy off the ground. To get in touch click here.

You can also book a face-to-face meeting with us at MVNOs World, June 1-3^rd in Amsterdam here.

The post Could the Lidl 1GLOBAL MVNO announcement signal a new wave of retail MVNO growth in Europe?  appeared first on Graystone Strategy.

I think this creates a new kind of space race as the UK vies to become the first country in Western Europe to boast the connectivity. 

As you can imagine, they’ll be some strict rules in place to protect air space safety, but under the terms set out by Ofcom, mobile operators and satellite providers can use existing mobile spectrum for direct-to-device services.

If this wasn’t exciting enough, consumers won’t need a special licence to take advantage. It really could be a game changer for rural coverage gripes. 

As you can imagine there’s already been some activity in anticipation. Notably O2 has partnered with Starlink and Vodafone has inked a deal with AST Space Mobile.

This prompts an interesting question for MVNOs: will they get parity on the deals being done? 

As a general rule, best practice guidance when developing an MVNO contract (and certainly the ones Graystone Strategy has been involved in) is that there is a contractual clause giving MVNO parity of access to existing AND new technologies.

So that being the case, I’d expect a queue of MVNOs at the doors of O2, EE and Vodafone, expecting access to these new satellite services for their customers. 

They’d be within their rights – assuming the contracts are designed to best practice guidelines – to ask for a wholesale arrangement, and availability of a satellite product within a reasonable amount of time. 

What the agreement wouldn’t cover is the wholesale price for accessing the satellite technology. The MNO would need to set this as the new products and services are developed. 

In the case of satellite access, with no real precedent, it would likely trigger a price negotiation between the MNO and the MVNO, but having the parity of access clause is crucial to get your MNO to the table. Without that, then likely the MNO will retain satellite services as an exclusive product only available to direct customers.

Proposition development

It’s important to say, I am not privy to any information, but I would expect MNOs to position this as a premium service, perhaps stipulating it’s run as an out of bundle charge, or included in mega packs of data you add on. It could also be a B2B sell initially. It will be very much down to the wholesale costs the MNO is paying to the satellite providers to access their network of satellites. 

Check contracts now for parity and to gain differentiation

It’s interesting that the shoe is on the other foot. Now the MNOs will experience some of the challenges in negotiating access and pricing with satellite providers, that MVNOs have experienced when negotiating with their hosts.

I certainly think it’s worth checking your wholesale contract wording and engaging your MNO to see what the potential is, and if you don’t have parity of access add it to your list of things to renegotiate at contract renewal time!

I’d also suggest evaluating what a market offer could be and how you’d use it to grow your brand, and whether such a product is even relevant to your customer segments. 

I think there’s huge potential to differentiate here, and I do think people and businesses will be willing to pay for it. Connectivity is the fabric of life after all. But there will be a balance – getting pricing wrong, or making it too complicated to access an offer will be a turn off, and will open the door to a competitor to swoop in and take the prize. 

If you would like some help determining your position with regards to contracts, negotiation points or proposition development, then we can help. This a core offer from Graystone Strategy, so why not give us a call and see how we can help you join the space race?

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Keeping it simple with a £20 monthly plan, is a clear message to the industry that it means business and wants to join the mobile and MVNO revolution. I really do think this a big statement of intent and worth reflecting on, especially if you’re at the helm of a high street bank. 

I think it underlines a pivotal trend in banking and mobile, and any high street incumbent that doesn’t have a plan, could be left for dust. 

Super app generation comes into play

When Reuters reported the news, it referred to the ‘super app’ ecosystems that neo and digital banks are creating. It’s something we have been tracking for a while at Graystone Strategy – you may recall my blog on Revolut.

I think Revolut is one of the best examples of a brand that is successfully extending its value to the customer by diversifying, in the shape of eSIMs for VIP customers. 

Revolut has a loyal customer base that likes using digital services to manage their money when abroad. This makes the strategy to pursue other services a ‘no brainer’. Revolut customers want an alternative to paying the all too often confusing and hefty roaming rates, so why wouldn’t they buy an eSIM that is super flexible? 

What’s telling, is the scale and speed of growth. 600,000 people have taken up the service, marking a significant step on the road to evolving the brand into an MVNO in Europe.

We’ll see more plays like this in the coming year – Monzo, which has 13million banking users, announced in August that it intends to join the pack, whilst Klarna has big plans in the US. 

None of this is happening by accident. 

At the risk of repeating myself, I think we’re witnessing a global phenomenon with banking and financial institutions across the globe identifying the opportunity to grow revenue, improve retention and loyalty, and improve efficiency by selling more to the existing customer base.

Initially, the movement started with banks in Africa leveraging their physical footprint to make it easier for people to transfer money and access ‘micro’ loans. 

Equitel in Kenya led the way and pioneered the MVNO, whilst Vodafone and Safaricom launched a banking service, M-PESA. They all set the bar for solving acute problems for African communities and the innovators in finance and mobile haven’t looked back. 

Trust is at the heart of things 

The disruptive model we’ve seen in Africa worked then, and continues to work today, because the brands involved are trusted. And it’s trust that sits at the heart of the new MVNO phenomenon. 

If you trust a bank with your money, then you’ll trust them to deliver a mobile service. Throw digitalisation and eSIM into the mix and you have the perfect set of ingredients for redefining a market. 

I also think, in general, banking brands are good at selling multiple services. Cross selling current accounts, mortgages, savings, insurance, loans, travel money is the norm, so adding an additional service, such as your mobile connectivity, to the portfolio makes for a simple and cost-effective way to drive revenue and margins.

Yet, if that’s true, why have none of the UK’s leading high street banks joined in? 

There’s certainly scope when you look at the customer numbers. Barclays has 48m customers compared to Metro that has 3million. 

So, if it’s not the size of the base that’s preventing a strategic move, what is holding them back? I suspect that answer is related to the technology constraints and I can see why that could be argued. 

Given many of the banks on the high street have been around for hundreds of years, the technology they will be using will be clunky to say the least. Hard to mould and likely to encourage risk. Whereas in comparison, neo banks, like Monzo, are more agile with digital tech stacks that are easier to develop, manage and integrate with mobile. 

These numbers illustrate the point well: Metro has got 3million users on its app each month, while Starling bank has 2.4million monthly users (from a base of 4million). In contrast HSBC, with 42milion customers, has only got 3.8million using the app monthly.  

Are risk averse companies also shy to mobile integrations?

It would be reasonable to infer that large and complex projects are not what risk averse institutions want to pursue, or that its customers don’t want the digital service. But I think that’s a misnomer. It is possible to move people into digital, and it’s equally as possible create new brands, using legacy stacks when you use the right technology partners. I’ve done it and there’s a whole industry dedicated to taking these very headache away. 

Tech companies of the MVNA / MVNE variety, all over the world, have developed solutions that will plug new into old, at scale and crucially they will do it compliantly.   

And don’t forget, it’s not like neo banks are developing the mobile infrastructure themselves. They too use MVNAs and MVNEs to support their mobile launches, and companies like Gigs (used by Lendable) offer simple API access to systems. It’s proof that it is perfectly doable with the right ambition and proposition. 

If established banks were to tap into the MVNO ecosystem, they’d soon realise the potential for growth, and understand there are MVNO experts like Graystone, that can help set up and run an MVNO – from finding a tech stack partner to developing propositions that work, to using insight to keep a brand fresh and relevant. In short, the MVNO industry is full of talent, and if banks tapped into just a small part of it, they’d fly. 

Of course, the business model must also stack up. 

There’s good reason to take a look. Firstly, there’s a market ready to switch. Research from Enders Analysis (2024), showed that UK MVNOs, including Tesco Mobile and Lebara gained 1.6 million customers, while the four largest traditional operators recorded a net loss of 180,000 subscribers.

The economics are worth exploring too. Mobile is a relatively small proportion of monthly outgoings yet considered a very valuable service by its users. That’s a big plus for any brand that wants to create a ‘sticky’ service. 

Conversely, in the highly regulated banking world, selling more banking services is costly, and highly competitive. Yet if banks offered mobile as an incentive to take multiple banking products, then I think it’s feasible to unlock the door to more long-term customer value. 

You can picture the pitch: “Got a current account, take advantage of our exclusive mortgage rates… and then our exclusive savings rates on ISAs, and why not take unlimited mobile too?”

This formula of multi-product, progressive discounting has worked very well for brands like Utility Warehouse and it’s a model that suits the banking world. If you need any more convincing about how telecoms can help grow a business, then look into the rumour that Octopus, which owns Octopus Energy, is also considering its telecoms strategy.

Banks need to move now

But the reason why banks do or don’t launch mobile services is, frankly, immaterial. Bottom line, if banks don’t consider mobile, then it’s clear their neo competitors will. For any banking brand grappling with making itself relevant to the latest generation of consumer, it makes sense to think about digital and mobile services NOW. 

Because, let’s face it, if banks don’t take on the challenge of adapting to the future and diversify the offer, then they will likely go the way of Blockbuster and Kodak. These brands became irrelevant as digital became the norm. History will repeat itself as AI and virtual solutions come to the fore. We don’t need a crystal ball to reach that prediction. 

So, if you’re working in a bank and reading this, thinking ‘we need to get our strategy sorted’, then I urge you to act on the thought. We can help. We’ve done it numerous times before, all around the world, so we can help you enjoy success too. Just drop me a message and we’ll get you a plan. 

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It’s a polarising subject so the analysis that follows takes a view of how a celebrity or business person can use existing brand value and assets to access the world of mobile.For those reasons it’s the MVNO we didn’t expect, but makes perfect sense.

If you look around the world, celebrities, YouTube stars, football clubs are all moving into the MVNO space. It makes better commercial sense for those people who have become a brand in their own right because launching a beauty range or a vodka relies on repeat purchase. Mobile contracts provide a recurring revenue. 

Most recently, Jason Bateman, Sean Hayes, and Will Arnett of the Smartless Podcast announced their MVNO, to significantly less fanfare. They’ve followed in the footsteps of Ryan Reynolds who was involved in Mint. Mint was acquired by T-Mobile for $1.35bn in May 2024. This alone shows you the draw to getting involved in the industry. 

From a business perspective, when I was assessing potential MVNO partners in my wholesale days at Vodafone, we always looked for organisations that had customer access, a well-known brand, distribution and points of differentiation.

Taking that into account, celebrities score well and so would a businessman with a big following. In this case, Trump has lots of assets to work with. The Truth social platform provides a captive audience and his other businesses provide intel on customer behaviour. 

It’s also worth looking at the bigger picture. The path of celebrities using their brand to create a product is well trodden. There have been many celebrity fragrances, alcoholic and energy drinks, clothing labels and so on. All of them can be classed as brand licencing deals.

As I understand it, licencing for Trump Corp has done well – $10m from bibles, watches, and sneakers (that’s trainers to us Europeans) and bigger money (some $30m) through hotel licencing in Dubai, India and Vietnam. Mobile isn’t such a big leap in this context. 

The appeal of mobile for any brand or celebrity is that if it is done correctly it generates a monthly recurring revenue, and that will likely drive more long term value than trainers or perfume.

I suspect some of the appetite has come from watching Mint’s success. Although Mint wasn’t specifically focused on fans of Ryan Reynolds, his involvement certainly drove up awareness and added some star quality. When Mint sold to T-Mobile, Ryan Reynolds allegedly made $300m. That alone gives a celebrity 300m reasons to get involved in MVNOs. 

More broadly, if we look at market conditions in the US, there is substantial growth expected in MVNO. It’s forecasted to take another 5% US market share by 2029. The total market is expected to reach 459m subscribers by 2029, so this helps you understand the scale and growth potential of even 1% let alone 5%. 

But this isn’t just a US trend. There have been pushes into mobile by social media influencers, football clubs and many more brands across Europe and beyond. I bet that we will see more online personality brands join the telecoms market soon, for exactly the reasons outlined above. 

However, nothing is guaranteed. Having a brand is a big help in terms of driving awareness and reaching a captive audience. But your offer still needs to be materially different to anything else. Otherwise it won’t get traction. 

If you solve a need that other carriers can’t or deliver an enhanced brand experience (as Revolut and countless fintechs have recently) then you will be on the upward curve. Barça Mobile is a great example of a brand that’s intent on giving fans access to exclusives and experiences they can’t get on another network.

Not all the details about what you’ll get on 47 Mobile are public, or even clear – the claim of an all American smartphone has prompted queries in the press. But telemedicine and concierge type services have been mentioned. With so many businesses in its stable, Trump Corp will be able to enhance the offer in lots of surprising ways. 

I think the real story is who will be next? Who will be motivated to seize on the opportunity of MVNO? It might be someone you and I have never heard of, but your kids have. Leads me to close by saying Watch Out World – more wealthy baseball-cap-wearing giants could be coming our way. 

If you’d like to make a ‘mint’ from your MVNO idea then Graystone Strategy can help you assess the potential and develop the strategy to make it s success.

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It will happen on a financial scale we’ve not witnessed before. The £11bn investment makes it one ‘of the largest privately funded infrastructure programmes in the UK’. Aside from delivering all kinds of speed benefits, it’s expected to remove a total of 16,500 sq/km of ‘not spots’.

This is of course great news for consumers, especially those who are crying out for consistent, reliable coverage in more rural areas. High speed networks will also be pivotal to businesses that want to harness IoT, AI and all the applications that underpin a more productive workforce.

The plan to deliver the ‘fully funded, regulated, and guaranteed’ network will be music to the ears of the regulator as it meets the reasoning for waving the merger through. 

It will take a while to complete the mammoth job, but all credit to the team – they are out of the blocks fast. That will also be reassuring to the government, which will be glad to see up to 13,000 jobs are plumbed into the plans.

However, there was no information about how the network improvements will benefit MVNOs. The release made no reference as to how or when MVNOs such as Asda, iD, Gamma, Lebara will gain. Clarification from the press office, however, confirmed they will benefit but it’s not going to be immediate.  

When VodafoneThree does deliver parity, then it will be great news for consumers using the MVNOs. But if it takes time, or if there are technical challenges, then it could trigger some difficult conversations between VodafoneThree and the MVNOs as they will rightly demand parity of access. 

One of the positives for consumers is news that the multi-brand mobile strategy will continue. Vodafone, Three, VOXI, SMARTY, Talkmobile all endure.

This suggests the new entity thinks each of the brands is sufficiently differentiated to hold its own in the market. I did expect some adjustments here, but I suppose it could be argued that there is more to lose by cutting them.

Keeping all the brands will further help to allay some of the fears on jobs. Though there will need to be some rationalisation on duplication in HQ, 400 jobs are expected to be created in service centres in Belfast and Sheffield, and there are no planned redundancies in retail.

On the topic of jobs, you’ve probably seen that LinkedIn has been buzzing  with news on who has got the roles in HQ. I’m especially pleased to see the female representation as the new leadership team forms, and I congratulate everyone who has secured appointments. The industry will benefit from diverse leadership in all its forms and I hope we can see more progressive inclusion in the sector as a whole.

What material difference will all this make to you as a consumer?

This time next week the first benefits will start to come through as Three and Smarty customers receive a 20% average 4G speed boost.

And by Christmas, 27 million Vodafone and Three customers will benefit from the ability to freely access the two networks.

As for the brand, we should expect to see more emphasis on broadband as it becomes the (and I paraphrase their release) ‘UK’s largest full fibre provider’. I’m sure we’ll learn more about how it will compete in this busy space over the summer.

It’s something to keep an eye on as competitor brands start to make their moves. Consumers will want to get full value from their full fibre and but won’t want to pay over the odds. There could be some enticing offers coming into ad-land soon. 

Business propositions will all come under the Vodafone brand, which is pretty much what we predicted as it leverages Vodafone’s strength in this area.

I think it’s a real shame for the Three Business team, which has made strong progress into the segment, hitting a slice of the market that wanted something less corporate and more flexible. They’ve brought some interesting propositions to market and been a significant challenger on pricing. 

It therefore goes without saying that I’m excited to see some of the business team move into the wholesale team where they will be able to apply their experience and expertise to the dynamics of the ever-changing MVNO market. 

As ever, time and money is what’s needed to make all of this happen. As a consumer, I’d stay on top of the deals as there will be some good ones for anyone in the market ready to change contracts. 

MVNOs have a lot to gain in this space and could be aggressive on two fronts. Firstly they could disrupt with some great headline offers. Nothing new there but they could up the ante with advertising. 

And secondly, they could take advantage of the growing appetite for eSIM. One way to pitch it is to encourage people to have a ‘back up plan’ whilst the network integration happens. 

By using phone settings to choose the best bearer, consumers won’t feel any downsides to interruptions to service. (It’s what I do now, naturally with an MVNO SIM and it allows me to access Vodafone, Three and BT for data services). 

Main takeaway is that this isn’t a time to fall asleep on watch. There will be some great skills coming into the market from HQ, there will be some opportunities to swoop in while the HQ is distracted with network priorities and there’s wiggle room to negotiate on wholesale deals. 

As ever, it’s all to play for!  

Need help deciphering what all this means for your business? Then get in touch. Our team of proposition, segmentation and GTM specialists are ready to help you compete.

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