Member only pricing sits at the core of the offer. Membership is £39.99, unlocking benefits that includes free delivery, extra savings, unpacking and recycling services for retail purchases, and finance deals on SIM free phones every 24 months. 

Plus there’s an exclusive ‘one size fits all’ member tariff for £12. It’s a straightforward 30 day SIM only deal with 500GB, unlimited calls and texts. It also includes a reasonable 15GB of roaming with an option to top up with boosters. 

The obvious comparison to make is with iD Mobile, which falls under the Curry’s brand. iD has led the way in terms of electronic retail MVNO models, introducing a range of price plans from monthly to SIM only, and device bundles. This leverages its retail strengths and heritage inherited from Carphone Warehouse.  

However, what iD has not achieved yet, is a full integration into the Currys shopper base, whereas it’s clear this is very much the intention of AO. 

It will be interesting to see how this plays out particularly as both MVNOs are on the Vodafone network. There is no difference in coverage or network service so it will come down to proposition and value. 

Will embedded member benefits and simplicity win, or will the more traditional MNO approach of a wide range of tariffs, offers and handsets be preferable? It’s perhaps not something you can split in such a black and white way. Each brand knows its customers and has a proposition to suit. That said, I suspect the cautious approach from AO will need to change to be more bullish and give people a wider range of price plans to choose from.

The trend for retail MVNOs shows no signs of slowing

Of course, AO’s launch is part of an ongoing global trend of retailers launching MVNOs to make loyal customers even stickier. UK examples include Tesco Mobile, Asda Mobile, Superdrug Mobile, Coop Mobile, and further afield I’d point to the German retailer MediaMarkt’s Let’s Go Mobile brand and Bait from Walmart in Mexico. 

We’ll see more over the next 12-24 months. Lidl is already well on its way to introducing mobile in 30 markets and I firmly expect more to follow suit in Europe, but also emerging markets where regulators want to open up competition. It all supports the predictions that the segment will grow by 50% from $4.8bn to 7.3bn by 2031.

Is that really possible? Yes. Everywhere you look there are retailers with a large footprint that can use mobile to convert customer footfall into additional value and loyalty. From supermarkets, through technology stores to fashion brands, they all have the ingredients provided they can create a proposition full of unique value and strike wholesale terms to underpin growth. 

I’m also sure that sooner or later one of the highstreet banks will realise that they need to address the impact of Lendable, Revolut and the Neo banks. Consumers are open to this type of ‘retail’ offer too and with the right help, brands have it in their gift to capitalise on the opportunity quickly. 

But whichever brand is next, one thing is for sure, the UK MVNO environment remains as vibrant as ever. Just the way I like it! 

We have worked with retail brands in developed and emerging markets around the world, helping them understand the scale of the local opportunity and how to bring it to market (you can see how we’ve done it with Apple Premium Re-seller here). If you are a brand trying to understand how mobile will add value, and encourage customer stickiness then get in touch here.

Further reading 

The post AO Mobile introducing a new membership model to the UK mobile market  appeared first on Graystone Strategy.

Dig a little deeper and lack of focus on the bottom line or failure to understand the dynamics of a marginal business are often the root cause.

Why margins are under pressure

Average revenue per user (ARPU) has been declining for some time, but today’s economic environment has made the impact much more significant. 

Many network operators have responded by introducing annual inflation-linked price increases. Although this helps offset rising costs, it often damages customer relations and can lead to increased churn, something MVNOs have benefitted from.

Few MVNOs have this luxury. They may win customers from MVNOs who price hike, but there’s little point in the long-term if they can’t make sufficient margin to cover the acquisition cost.

There’s also the backdrop of wholesale arrangements, which can restrict the choices MVNOs have when it comes to making price adjustments.  

For instance, for MVNOs offering large data bundles or even unlimited, and relying on customers to use than they buy, (known as breakage), will find relatively few heavy users will break the model and erode all the margin. Edge cases really do matter in the breakage model.  have this model broken and all the margin eroded by a relatively small number of very heavy users.

Edge cases matter in the breakage model because in effect, the MVNO is paying more for wholesale data, yet unable to raise prices to compensate. The breakage that once contributed to healthy margins gradually disappears and the result is a steady erosion of profitability.

Even MVNOs that purchase fixed data bundles from their host network shouldn’t assume they are immune. While these arrangements may currently shield MVNOs from some of the risk, wholesale providers continually monitor usage trends. As customer behaviour changes, wholesale pricing is likely to evolve too, reducing today’s advantages over time.

There is no single solution

Margin recovery rarely comes from one dramatic change. Instead, the strongest results usually come from improving several areas of the business at the same time.

Small commercial improvements, operational efficiencies and product enhancements can combine to create a meaningful improvement in profitability. The trick is to do it without fundamentally changing the customer proposition. 

So, what are the four things we recommend?

1. Start with the wholesale agreement

For most MVNOs, wholesale costs represent the largest single expense, making them the obvious place to begin.

A contract review may uncover opportunities to negotiate improved commercial terms, marketing support, growth incentives or revised pricing structures.

However, successful negotiations require realistic expectations. Any concession from an MNO will almost certainly come with commitments in return, whether that’s longer contract terms, customer growth targets or other commercial obligations.

It’s also worth recognising that host networks are experiencing many of the same financial pressures. Their infrastructure costs are increasing, while their own retail businesses face similar margin challenges. Negotiations are therefore most effective when both parties can identify mutual long-term value rather than simply seeking short-term price reductions.

2. Understand your negotiating position

Before entering any wholesale discussions, it’s essential to understand the balance of power within the relationship. Read our negotiations blog here.

Suggesting a move to another network can be an effective negotiating tactic—but only if it’s genuinely viable and you are prepared to do it. Migrating customers between host networks carries significant operational risk. 

The risk mainly lies in customer disruption which can increase churn, increase customer support costs and reduce lifetime value. Host networks understand these risks and will challenge an MVNO’s willingness to switch. 

For that reason, any negotiation strategy should be based on careful commercial planning rather than tactical brinkmanship.

3. Focus on acquisition quality, not just volume

Another opportunity to steady margin lies in customer acquisition, or rather, attracting a better quality customer.

Of course, reducing acquisition costs is valuable, but winning higher-quality customers often delivers greater long-term returns.

It’s therefore vital MVNOs understand which customer segments generate the greatest lifetime value. [JG1] Bear in mind, it’s not always the customers on the biggest bundles. I’ve seen MVNOs be very successful with a good mix of medium to low users who are happy to spend a relatively small amount, use little data and stay forever.  

With this knowledge, they can invest in the most effective acquisition channels while reducing spend on lower-performing ones. Since channel performance changes over time, it’s crucial to do regular reviews of commission structures, incentives and marketing effectiveness.

If you take this path, then be aware that the objective isn’t necessarily to acquire the largest number of customers. A smaller base of loyal, profitable subscribers will often create more value than a large pool of price-sensitive, high-data users.

4. Create additional sources of value

Be warned that cost management alone won’t solve the margin challenge. Sustainable profitability also depends on increasing customer value.

Many MVNOs have opportunities to strengthen their proposition through complementary products and services. There are examples all over the world to take inspiration from. Everything from device insurance and cyber security services to family safety features, handset financing, entertainment bundles and broader multi-play offerings.These services can generate incremental revenue while also strengthening customer relationships. We’ve proven numerous times with our clients that value-added services improve retention, increase customer lifetime value and create additional differentiation in highly competitive markets.

Building healthier margins

Margin pressure isn’t going to go away. In fact, it will probably get tougher. Rising data usage, changing customer expectations and increasing operating costs mean MVNOs will need to continually adapt.

The brands that succeed will be those that treat margin management as an ongoing discipline rather than a one-off exercise. They will also understand that combining stronger wholesale agreements, employing better acquisition strategies, developing smarter customer segmentation and introducing enhanced propositions, will build more resilient, profitable businesses that are well positioned for long-term growth.

If you need help negotiating better wholesale arrangements to drive margin improvement, then talk to us. We’ve helped MVNOs all around the world adopt strategies for continuous margin management and grow their business as a result. 

For further reading, see our ‘The art of the wholesale deal:5 things Every MVNO must do‘ blog.

The post Margin Squeeze in the MVNO Market: Four practical ways to protect profit appeared first on Graystone Strategy.

In terms of size alone, there are more than 2,100 MVNOs worldwide. Together they serve around 5% of the world’s 5.8 billion mobile subscriptions. 

In the last ten years, the sector has grown by 60%, which equates to around 800 new MVNO launches. By my calculations, that results in the need for 500 wholesale negotiations every year, either between new entrants and MNOs, or existing MVNOs renegotiating their contracts or attempting to change network partners.

With so many negotiations happening day to day, you’d think there would be plenty of knowledge on how to do it well and get the result you want. Sadly not.

Firstly, in my experience, many MVNOs approach wholesale negotiations with the wrong mindset. I don’t want to use the word haggle, but it’s probably the quickest way to sum up the problem. It just doesn’t work to go in thinking you can get a rock bottom price, and it won’t secure the deal you need for launch, growth or stability.  

A negotiation of any kind requires thorough preparation, which includes a full understanding of the host’s objectives. When you know what their strategy is you can show how your MVNO will help them achieve it. 

What’s more, this approach always breeds good relationships and respect, which is critical for developing a long-lasting partnership. 

There are five things we recommend you consider to get match fit. These are taken from our popular masterclass ‘The art of the wholsale deal’. 

1. Why would operators work with you?

As we’ve already said, knowing how you will help an MNO be successful is fundamental to your MVNO’s success. 

Many MVNOs spend weeks refining what they want from a wholesale deal but very little time understanding what the operator wants from them.

Operators typically enter wholesale partnerships for one of six reasons: 

• to monetise spare network capacity
• satisfy regulatory requirements
• access new customer segments
• enter new verticals
• drive wholesale margin growth 
• or simply prevent a competitor from winning the business

Your pitch should clearly demonstrate how your MVNO helps the operator achieve one or more of these objectives. The stronger the strategic fit, the stronger your negotiating position becomes.

2. What’s your pitch?

Before wholesale pricing is discussed, operators assess whether an MVNO is worth their time.

The sorts of things they look for are sources of credible funding, a differentiated proposition, realistic forecasts (easy to get wrong, hard to get right), access to customers, strong distribution channels, experienced leadership and a clear understanding of the technical and commercial requirements of launching a mobile service.

It’s clear from that list that you’ll need to present a compelling business case built upon robust customer insight. You must also have a realistic set of growth assumptions. This instils confidence in the team too. 

But remember, launching is one thing, attracting customers, keeping them and acquiring more is quite another. Be prepared for a lot of scrutiny at this stage. 

3. What levers do you have? 

The best negotiators enter the ring knowing what levers that have to pull. For a new MVNO, leverage may come from access to a unique customer base, a powerful brand, regulatory support or a proposition that addresses an underserved segment. 

But be aware that you also have vulnerabilities when you’re the new kid, like limited telecoms experience, forecasts that carry assumptions or a lack of technical or operational capability. Knowing how you bridge the gaps is important to show you’ve thought everything through and are in control of a strategy that can stand up to the challenges of trading. 

In comparison, trading MVNOs have (usually) proven they have the ingredients to be successful and are generating wholesale revenues for their host. 

It’s not all plain sailing though. Churn, acquisition costs and competition can all be a thorn in the side. 

Whatever your situation you need to be ready to justify your plans and show evidence it’s founded on data not a hunch. 

4. Is a low price really all you want?

The wholesale rate card and margin ire important for start-up MVNOs, but many of the most valuable elements of a contract sit elsewhere.

Access to new technologies, service level agreements, the pricing review process, clear frameworks for dispute resolutions and timetables for contracts reviews will all have a significant impact on long-term profitability, your ability to trade competitively and flexibility to move host. 

Make sure if 6G launches in the next 3-5 years you have access. Consider your plan for D2D satellite communications or eSIM. What if an AI customer management tool is made available by your host but you can’t use it? If you can’t get access to things that improve margin, proposition and customer experience then you significantly undermine all the efforts for launch. 

5. Are you ready to negotiate with professionals?

Wholesale teams negotiate every day. They use well-established negotiating techniques ranging from extreme opening positions and strategic concessions through to “good cop, bad cop” tactics and last-minute requests before signature. It’s a game you need to be ready to play.[JG1] 

I know because I have sat on both sides of the table and written the playbook. In fact, when we deliver our masterclasses at conferences, the MNOs visibly blanche with embarrassment when we get to the part warning MVNOs of the techniques MNOs use. 

The best defence to these tactics is preparation. Understand your objectives, know your walk-away position, maintain alternative options wherever possible and remember that the goal is not simply to win a negotiation but to build a partnership that can support sustainable growth. 

And if you still don’t know where to start, get someone who does on your team. 

If you take one thing from this list, then it’s prepare. And do so strategically. You need a compelling proposition, a clear understanding of operator motivations and a contract that supports long-term success.

Whether you are launching a new MVNO or preparing to renegotiate an existing agreement, investing time in planning your wholesale strategy will almost always deliver greater returns than focusing exclusively on price.

Learn more about our masterclasses and how they can help you prepare here.

And if you want to talk specifics for a forthcoming negotiation or even appoint us as your negotiator then get in touch. It’s what we do.

The post The art of the wholesale deal: 5 things Every MVNO must do 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 satellite-to-mobile communications 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 negotiations 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.

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. Find out more here

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.

The post Key factors for a successful MVNO launch appeared first on Graystone Strategy.

The discussion covered differentiation, executive commitment, route-to-market choices and the support brands may need when entering the UK mobile market through an MVNO model.

The post Gamma outlines key success factors for UK MVNO launches appeared first on Graystone Strategy.

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.

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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. 

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