At almost the same time as the merger closed, the Pakistan PTA opened applications for MVNO licences. Since then, enquiries to our team have centred on which route-to-market strategy to follow, given the significant drop in the licence fee from $5m to $140,000 and some of the licensing framework arrangements that are in play. 

What’s driving this?

Usually, MVNO licensing is opened when a regulator wants to rebalance competition after
consolidation has handed a single operator significant market power. Pakistan’s timing fits that pattern almost too neatly: the licensing window opened in late June, days before the merger closed. But the framework itself tells a different story. It carries no reference offer, no access pricing, no wholesale obligation of any kind. Whatever it is, it isn’t a remedy.

The real drivers sit upstream, in economic policy. Uraan Pakistan, the government’s National
Economic Transformation Plan 2024–29, makes “E-Pakistan” one of its five pillars and hangs an
ambition to double exports to around $60 billion by 2029 on digitalisation.

The Digital Nation Pakistan Act, in force since January 2025, created the Pakistan Digital Authority under a commission chaired by the Prime Minister. Both need digital services to reach people that telco retail hasn’t.

With the sector past 200 million subscribers and growth now coming from data rather than SIMs,
MVNOs are the cheapest instrument available: fintechs, ISPs, cable operators and technology firms brought into mobile without a rupee of new spectrum or infrastructure.

This is growth policy wearing competition policy’s clothes and is precisely why the wholesale terms were left to the market. 

No regulated wholesale access 

As approvals and integration work for the merged entity progress, we could expect to see some regulatory remedies tied to it. Until then, and unlike other jurisdictions around the world, Pakistan hasn’t introduced regulated wholesale access. 

MNOs are under no obligation to accept MVNO applications, publish wholesale pricing or offer standard commercial terms. They decide who they partner with, on what terms, and at what price. 

For MVNOs, this means entry depends on finding an MNO partner willing to use MVNOs to reach a market segment they can’t otherwise serve, and one who will offer fair terms. 

Narrow safeguards 

The safeguards that do exist are narrow. An MNO cannot degrade, suspend or terminate an MVNO’s service without PTA approval. And every commercial agreement must be submitted to PTA and approved before it takes effect. Once approved, neither party can change it without PTA’s written consent.  

That is protection of a kind, but it is procedural, not economic. Nothing in it guarantees fair wholesale pricing. It also cuts both ways: an MVNO that negotiates badly will not be walking away from that agreement quickly. 

Proving strategic value is critical 

It means every MVNO needs to prove the value they will bring in terms of incremental subscribers and be ready to negotiate terms that make the ambition a reality. More importantly, every operator will need to set fundamental strategic foundations to ensure participation in the new MVNO era supports growth. 

It’s worth noting that MNOs who have done this in other parts of the world use a strategic scorecard for the type of MVNOs they will partner with. This gives clarity of purpose, enables the wholesale teams to understand who they should work with, and gives clear strategic reasons to MVNOs and regulators why an MVNO may not have got a deal. 

There are some ‘watchouts’ for MNOs in all of this. Price too high, or with too many complex clauses and not enough support built in, and MVNOs could fail before they even start. Not only that, if MVNOs discover there are better terms to be had elsewhere, they will leave at the first opportunity the agreement allows. 

Getting this right is crucial. Let’s not forget, MVNOs don’t come in one size. Full, light, MVNE-enabled and even MVNA models are all viable options. The framework itself is silent on this. It licenses a single MVNO category and says nothing about technical models, so which of them gets built in Pakistan is a matter of MNO strategy, not regulation. And that strategy could be just as varied as the models themselves. 

What paths might the remaining MNOs follow? 

For Jazz, the market leader, wholesale could become a strategic imperative. It’s a controlled way of expanding into adjacent customer segments (ie ones it can’t reach otherwise) and do so without diluting its own retail brand. It’s also a way to protect retail margins, a perpetual problem for operators everywhere. 

Above all, Jazz needs to be acutely aware it can’t operate in a vacuum. The ‘prisoner’s dilemma’ can’t be overstated, and the margin here is thinner than most. With less than half a point separating Jazz from the merged entity, a single well-executed MVNO deal on a competitor’s network could change who leads this market. It therefore makes sense to have the traffic remain on its network, with control of the deal and value through wholesale pricing, rather than be a victim of a competitor’s strategy. 

For Zong, which has a lower market share, wholesale could be exactly what it needs. Following an MVNO strategy would open the distribution channel and help drive incremental growth in a mature market. 

In our experience, the smallest operator almost always has the most aggressive wholesale strategy. They have the most to gain and the least to lose. Virgin Mobile proved this when it became the world’s first major MVNO. It happened because One2One, later T-Mobile UK, was the smallest operator in the UK in 1999, and was full of growth ambition. 

Whereas for e&, there’s a different dilemma. Does it use wholesale to shore up revenue in a business going through massive upheaval, bringing two brands, sets of processes, employees and infrastructure together? Or does it wait, get the foundations right, but risk missing the MVNO boat? 

It could viably take an easy route and only offer full MVNOs, assuming it has the capability to do the technical integrations to make it happen. 

Fortune rests on multiple factors 

For each of the operators, the answer will have a material impact on their own fortunes and on the overall market’s success. Pakistan’s economic and digital ambitions set a new tone for mobile, especially in a market which can no longer rely on subscriber growth. 

When you look at other regions around the world using MVNOs to unlock innovation and growth, success has come down to multiple factors. There’s never one single golden arrow. 

Brand differentiation from the competition, targeting a clear market segment with an innovative offer, managing channel costs and changing the overall model are all as important as each other. 

It’s also worth noting that in less developed markets there is always initial success with price challengers, but this isn’t sustainable in the long term. And absolutely nothing is possible until the market has foundation commercials that enable a reasonable level of margin to fuel business growth. 

MNOs are not competing with MVNOs.  

Pakistan faces a competitive dynamic it hasn’t seen before, and strategy directors need to reframe their thinking. This isn’t about MNOs competing with MVNOs. It is about MNOs competing to attract the MVNOs that will deliver incremental customers to their network and deny competitor networks the chance to take customers from their existing base. 

That is the paradox at the heart of this market opening. The regulator has opened the door to competition but made cooperation the only way through it, leaving the terms of cooperation entirely to the operators that the newcomers will compete against. 

Operators therefore need to set out what type of MVNOs they want to attract, and how. But most of all they need to commit and get it right first time. Afterall, fortune favours the brave.  

What’s your strategy? If you need help determining your wholesale approach, then get in touch.

We’ve done this analysis and strategic development in numerous markets facing the same market shift, with countless success stories to show for it.

The post Pakistan’s MVNO Cooperation Paradox  appeared first on Graystone Strategy.

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.

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.

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.

We’re starting to see satellite take off in countries around the work where regulators are granting permission.

Top of mind is the UK, where, following Ofcom approval O2 Satellite is first out the blocks with its Starling backed services, and Vodafone has inked a deal with AST Space Mobile. In the US, Skylo, Verizon’s direct-to-device (D2D) partner, is the latest name to be seeking FCC approval for services to support IoT, smartphones and wearables.

The post The Art of the Wholesale Deal: Negotiate, renegotiate, grow appeared first on Graystone Strategy.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The case for retail MVNOs

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

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

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

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

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

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

So why do retail MVNOs work?

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

It comes down to a few critical factors.

1. Unmatched customer access

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

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

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

2. Low customer acquisition costs and high lifetime value

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

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

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

3. Integration with loyalty

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

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

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

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

4. Customer perception is king

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

Lidl and 1GLOBAL make for a winning combination 

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

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

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

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

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

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

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

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

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

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

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

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

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.

And now, both will have telecom brands in common, as the headlines across the tech press show. Yes, the new kid on the MVNO block is Mr Beast, real name Jimmy Donaldson.

 “Mr Beast could cause trouble for TMobile and Verizon.”

“Mr Beast’s Wackiest Challenge Yet: Launching a Phone Company.”

“MrBeast’s Mobile Phone Ambition Could Rival Reynolds, Trump Family Ventures”

Not so whacky 

It falls against a backdrop of past success for other big name personalities. Ryan Reynold’s Mint Mobile is often hotly discussed as a model to emulate. In a nutshell, it capitalised on the critical ingredients new MVNOs need. A good, fair, simple pricing model and a strong brand, in this case, backed by the caché of a superstar founder.

This week’s stories about Mr Beast’s intentions read as a sensational move. It’s a surprise that the YouTube superstar, who has around 430million subscribers, would dare to launch a mobile company. Yet, to anyone in the industry (especially those twice the age of the 27-year-old) it’s a no brainer.

Why does it make sense?

There is of course a lot to get right when launching a new mobile brand. You must have the right wholesale agreements in place, a great proposition and a simple way for users to purchase, activate and manage an account. Above all, MVNOs must be different to everything else on the market, and be ready to spend on marketing, especially when no one has ever heard of you before.  

Mr Beast has a head start with regards to many of those ingredients. A huge global reach negates the need for the level of marketing and spend other brands would need to stump up. The scale of the audience provides the channel to market and simply equates to a huge revenue potential. This gives Donaldson significant bargaining power at the table, so getting the right deals for launch shouldn’t be too hard.

Should MNOs be worried?

There’s very little existing operators (MNO or MVNO) can do to bolster their brands from the ripples, or more likely, bow waves, that will come from a launch by a mega star of this ilk. 

And let’s face it, the first time mobile users who are joining the market, ones that have grown up with YouTube, might not even consider another provider for their mobile. That’s something MNOs and MVNOs alike will need to face up to.

MNOs might want to ensure they have a chance to be the wholesale provider though – think of the revenue! 

It won’t all be plain sailing

That said, launching an MVNO with global reach comes with challenges. Maintaining a great brand experience across multiple markets is top of the watch list. It’s operationally complex, with a multitude of different mobile wholesale deals to manage, and different regulatory regimes to negotiate.

I’ve seen this be the downfall in many scaling MVNOs. It takes meticulous knowledge and care to get right. It’s not impossible, but you certainly can’t blunder in thinking your superstar brand status will do all the talking.

There’s also the acute point that mobile is competitive. You can’t launch and hope things will look after themselves. The money might roll in to begin with, but if there’s an ounce of dissatisfaction, or a failure to give people special treats for their loyalty, then things will unravel.

Mr Beast will need a team that can keep innovating on proposition, so his audience stays hooked. Look at the effort MVNO football clubs go to, day in day out, to keep their users ‘sticky’. It takes everything from free content, special merch, and access to insider knowledge or early tickets sales that other fans can’t get, to keep people on the network.

Potential for a Mint-Ryan-Reynolds-style sale

If Mr Beast can deliver on this, then he probably not only has a successful business but also a brand he could sell to an MNO (or other digital darling) that needs to grow its portfolio and access a market it wouldn’t otherwise be able to reach. Ryan Reynolds’ Mint Mobile was successfully sold for a reported $1.35billion, so why not Jimmy’s?

Should Trump Ventures be worried?

Personally, I think Trump Ventures’ mobile ambitions will be unaffected by this news. The overlap on target audience is probably limited, and Mr Beast joining the competitive fray won’t be the thing that influences how successful Trump Mobile is. (You can see a blog on wrote about this earlier in the year here.)

Fortune favours the brave

All things considered, and if everything aligns for launch in 2026, then I think the Mr Beast brand has made a brilliant decision. The brand value, breadth and energy has the potential to make a fortune.

However, as I said before, picking the right markets, negotiating the right pricing and putting in place the right proposition is where the magic lies. So, if you are reading this, Mr Beast, don’t be a stranger. I’ll help you get what you need for world domination!

Drop me a WhatsApp on +447766244962

The post Mr Beast trumps Donald to go mobile. It’s the MVNO story we should have expected. appeared first on Graystone Strategy.

Yet, for employees there will be uncertainty. Having worked in both companies over the years, it’s fair to say that bringing together two diverse cultures will be a significant task for the leadership team. For the merger to work, people will need to be at the heart of the discussion. 

Reducing duplication

That will bring about a debate on skills needed today and how it must bend as the new company goes through various transitions. What does the HR strategy look like for a new company of this size and nature, and what resource is needed to suit the future strategic direction? 

We’ll learn more about this as the broader strategy unfolds, but there can be no doubt that successful delivery will be underpinned by the mammoth network integration and rationalisation. After all, this was the prevailing case for a merger; if the UK wants to lead on connectivity then this must happen. 

Technical integrations of this scale take years. However, everything that hangs off the network must also be consolidated. There will be no luxury in having two of everything – two CRMs, two brand agencies, two BSS. The list is endless. Expect a scrap between the suppliers vying for strategic partner status. 

In the short-term, employees will welcome the job security that will come from managing the process of reducing everything by half. But – and it pains me every time I write this – jobs will go as the process kicks in. 

Three will fade

Getting back to the real basics of a brand, Vodafone’s  has much more equity than Three’s and ratings by the likes of Which? show how far behind Three is. It’s always been my hunch and it remains so now that I’ve seen the new logo, that the Three brand will eventually be dropped and making it easy to revert to a singular brand identity. I’m not a brand expert but I can’t see how a 51% stake in favour of Vodafone plays out any other way. VodafoneThree will be intent on making every ‘synergy’ it can for the ‘new normal’ and that includes the brand. (Buzzword bingo at its best.)  

Wholesale reviews

At a wholesale level, the remedies are now in full swing, so there will be some frenetic energy in the market. I suspect the wholesale team will be inundated with requests as every MVNO takes a look at what there is to gain. And, depending on the scale of the commercial requests, commercial aggregators like Gamma, eSIM Go and Gigs will be asked to step in. Good news for that side of the market. 

But what of the customer? 

Isn’t this all about them? Customers won’t care about any of the above so long as they get good value and service. 

They might start to care more about the impact of the merger when store closures are announced as the retail estate is thinned, or the inevitable network outages happen as a consequence of the integration projects. There’s just no way of avoiding interruptions to service that the aspects of bringing together large organisations will cause. 

There could be a bit of immediate friction too. Higher value Vodafone customers might balk when they realise former Three customers get ‘all you can eat unlimited deals’ for a fraction of the price. It will be interesting to observe how they handle this. 

What’s the right course of action for MVNOs?

1. Request reference commercials – This requires a written request, signing an NDA and, if you are a new company, a convincing pitch to VodafoneThree that you will deliver scale.
2. Review propositions – Can you do something new to target customers who question the validity of staying a VodafoneThree customer? Should your plan be to anticipate outages and seize on the chance to swoop in? 
3. Review your three year strategy – I would expect VodafoneThree to have very specific remedy and post remedy strategies so be warned. Discuss your options now, not when there’s a surprise change. 
4. Use your clout – If you are an MVNO on either Vodafone or Three building and protecting a base you have commercial clout post remedies. Turn this to your advantage and do the analysis to determine if your current wholesale offer is better than taking the remedy offer.
5. Think about your talent pipeline – There will be some great people, with huge experience and knowledge coming into the jobs market. Think about how you can scale with them onboard. 

If you want help running analysis of your commercial terms and how making adjustments could help you grow your business more quickly, then get in touch. We’re here to help. 

The post MVNOs look out. VodafoneThree has landed. appeared first on Graystone Strategy.