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.

Haast’s fast gaining traction because its AI powered compliance platform alerts companies to risk of legal breaches and compliance bottlenecks when completing business tasks such as preparing and agreeing contracts, through to developing content and marketing campaigns. It’s designed to be multi-language and work across highly regulated industries including telecoms, utilities, pharma and finance. 

This disruptive approach to using AI for compliance has helped it win numerous Fortune 500 companies and international brands including Telstra, Aviva, and Zurich.

Building a channel partnership pipeline

Under the terms of the partnership, James Gray, managing director of Graystone Strategy, and Paul Jefferies, associate client director, will use their global expertise in go-to-market strategy and segmentation in the telecoms industry and parallel sectors to help Haast expand into the fixed and mobile sector, and related industries such as utilities and mobile phone insurance. 

“We’re excited to be working with Haast, which is fast becoming the leader in AI compliance management in complex, regulated sectors. Haast’s growth trajectory shows a strong appetite among business leaders to use its platform to transform how they operate,” said James Gray, managing director of Graystone Strategy. 

“Haast’s innovative platform is designed to provide an extra pair of hands for in-house legal teams, accelerating the parts of the compliance process that slow them down. The result is a legal function that can move at the pace of the business – without compromising on regulatory commitments.”

Paul Jefferies, associate client director at Graystone Strategy, explains why telecoms is a prime candidate for distribution: “Our goal is to help Haast build partnerships in the telco market. Telecoms is a prime example of a fast-paced, complex and regulated industry that must constantly find ways to unlock more efficiency and stay ahead of the competition.”

“We think Haast will give telcos the capability to do more in less time, and will be especially useful for organisations that can’t afford more legal resources, despite recognising its value to their business,” Paul concludes.

Haast’s platform offers UK businesses an efficient, scalable way to ensure that compliance doesn’t hinder growth, as Wessel Van Keulen, Founding AE Europe at Haast explains: “Our platform can support legal processes in every facet of a business and cuts compliance review time by 80%. We’ve proven you can increase an existing team’s capability using AI and as a result, grow the business without putting compliance at risk.” 

“That’s why we are excited to work with Graystone Strategy to expand our reach in the UK,” Wessel adds. “The team’s deep understanding of the regulatory landscape and its expertise in go to market strategy will be invaluable as we scale our business growth and bring the benefits of AI-driven compliance to a wider telco audience.”

Business leaders interested in discussing how Haast can help drive AI compliance solutions for their business should contact the Graystone Strategy team at enquiries@graystone-strategy.com.  

The post Graystone Strategy inks strategic partnership with Haast to drive its AI compliance solutions in the UK market appeared first on Graystone Strategy.

The post 1 Year On: How Has the VodafoneThree Merger Changed the Market? 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.

As stories go, this is significant for the market and indicates the growth potential of operator sub-brands and MVNOs right now, even in a busy market like the UK’s. 

BT ditched an excellent multi-brand strategy

BT has been here before. At peak success, the stable included BT, EE, and Plusnet. The three brands represented three distinct opportunities to acquire more ‘traditional’ consumers (BT), to the more edgy and young (EE), to those prepared to go with a market challenger (Plusnet). But after a brand review last year EE became the lead consumer brand for fixed and mobile and Plusnet lost mobile from it’s portfolio.

The original multi-brand strategy worked as BT, EE and Plusnet not only reached high numbers of consumers across different segments, but they also supported a multi-play strategy of fixed, broadband and mobile, something the other operator sub-brands such as SMARTY, giffgaff and Voxi could not offer at the time.

But as we know, things change, resulting in BT walking away from a multi-play, multi-brand strategy and losing its low cost mobile offer in doing so.

Time for a rethink

This week’s news indicates times have changed again, and a sizable rethink is going on. BT’s hand is somewhat forced as successful MVNOs and sub-brands reign strong, especially in the value end of the sector.

The driving question is: how will BT tap into the ‘value’ space and compete against sub-brands like SMARTY, giffgaff, Talkmobile and Voxi? It’s done it before with Plusnet, afterall. 

These challengers are all winning share, alongside MVNOs like Tesco, iD Mobile, and Lebara – none of which are on the BT network. Not to mention Sky, which has a great multi-play offer in the market.

Top of the strategic imperatives is to establish if BT should build or buy. 

Acquiring an MVNO with brand recognition, established infrastructure and customers, will be very appealing to get the job done quickly. But why go down that route when you could build a sub-brand with your own infrastructure? 

Let’s look at the pros and cons of both.

Setting up a sub-brand is common practice today. UK examples include Voxi, SMARTY, giffgaff and Talk Mobile but the phenomena is established throughout mature markets.  

It allows you to choose and build a proposition that is 100% complementary to your other brands. It allows you to have total control and leverage some of your network economies of scale.

BUT it takes time to set up, comes with the hefty costs of developing and launching a brand, and, if you seek to leverage too much of the existing ‘masterbrand’ infrastructure, or the skills working within the masterbrand, you can start to stifle the entrepreneurial spirit that a successful sub-brand needs.

Stepping back to a time when sub-brands weren’t a thing, operators only had the option of wholesale deals to find complementary MVNO partners that allowed the MNO to indirectly take share of a customer segment they could not address with the masterbrand.

The alternative approach has always been to find MVNOs which will address segments where the operator masterbrand is not strong. This allows the operator to indirectly target the segments through the MVNO and take their value through wholesale revenues.

But, and it’s a big but, operators don’t control the brand, it comes without the full retail revenues or customer ownership and they don’t set the proposition or pricing. This can be uncomfortable to mobile network operators, because without a level of control it’s hard to stop the MVNO drifting into your lane, and risk no longer being complementary.

Buy an established brand or a fledgling?

The speculation that an acquisition is in the offing, suggests BT has done its homework on all of this and has arrived at a crossroads – a) ‘buy’ an established brand with a large base and then supercharge the operations with MNO capital or b) buy a brand based on its potential. 

We have seen this done in France and Spain extensively over the last few years with a host of operators buying up and integrating MVNOs into a multi-brand portfolio.

BT obviously has significant financial resources so has options. I expect the board will first investigate an acquisition from within its existing wholesale portfolio. These MVNOs are already integrated into BT and the majority of BT’s portfolio (except Lyca) are light MVNOs meaning no SIM swap, and potential customer churn, should BT acquire them.

So what are immediate the options to acquire? It’s a very short list:

• Utility Warehouse offers a good base, a very unique and sticky low cost offer and it’s multi-play. But this presents a bigger question: would BT want to buy the whole business – gas and energy etc too?

• There’s 1p Mobile, the spin off from Utility Warehouse. It’s low cost but would it feel like a credible competitor to SMARTY, Voxi etc?

• Lyca is probably the organisation with the most subscribers and therefore appears a good prospect. BT Wholesale lured the brand away from O2 and it could make sense to go a step further given it’s already hosted on its own infrastructure.

However, BT might not consider it an optimal partner in that Lyca’s heritage is in the low cost international markets not domestic. 

Although Lebara has successfully proven moving from low cost international to a value brand can be done, it’s taken a long time and BT may not have the appetite to commit to a lengthy process with Lyca. There’s also the risk that any acquisition would inherit the long running HMRC dispute.

• Spusu may be an option. Low cost and already doing well against the SMARTY-style brands on Uswitch comparison tables. It signed with BT in 2023 and uses BT infrastructure, and, although an international operation, it may consider spinning off a brand in the UK.

• And then there is the relatively new wild card, Slice. It’s a sub-brand run by Lyca on an existing BT wholesale deal. It boasts a unique proposition and has an excellent user experience. I am a customer myself, albeit only as a back up SIM, but if I was buying for capability then Slice is where I would start my conversations. 

It also has the advantage that the CMA probably wouldn’t scrutinize a purchase too much, given the relatively low customer numbers involved. And let’s be frank, who would have the energy for another protracted merger discussion….

• If I wanted to be wild, I could suggest that with BT’s financial assets they could go BIG and buy on the scale of Revolut, taking the brand into a whole new area. 

This is of course huge speculation on my part. I have no inside track on any of the ideas I’ve mentioned. 

But, it’s got you thinking, hasn’t it? And that’s why I love telecoms. There is always something exciting going on. As ever, we’ll need to watch, listen and learn. 

Need help with your MVNO strategy. Talk to the experts. My team knows the industry inside out and can help you look at the options.

The post BT’s in the market for a low cost brand. What are the acquisition options? appeared first on Graystone Strategy.

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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