For many people, choosing the right mobile provider used to be simple, choosing whoever had the best price and coverage in a market dominated by the major network operators.
But now the landscape has drastically changed. We live in an always-on digital world where access to mobile connectivity is expected at all times.
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Chief Technical Director of Lyca Mobile.
Speed and reliability, international connectivity capabilities, contract flexibility, and ease of switching are all major factors, and that has created a mobile market made up of a diverse range of providers offering different specialisms.
The ecosystem is largely built around two types of providers: Mobile Network Operators (MNOs) and Mobile Virtual Network Operators (MVNOs).
MVNOs, in particular, have become increasingly prominent in recent years, and with evolving technology and rising expectations, it has never been more important for consumers to understand what MVNOs offer and the options at their fingertips.
It’s never been more important for consumers to understand the market and the options at their fingertips.
What makes an MVNO?
MVNO providers lease network capacity from established MNO providers, for example, Lyca Mobile uses EE’s network.
With that, MVNOs develop their own pricing models for pay-as-you-go and pay monthly plans, offer their own services such as EU roaming deals, and deliver their own customer experience offerings such as loyalty programs.
In essence, they offer the same overall connectivity as an MNO under their own brand.
For consumers, it offers more competitive pricing, greater flexibility with plans, and digital-first onboarding and plan management, putting the power back in the hands of customers.
How are they different from an MNO?
In comparison, MNOs are the big four providers in the UK that the majority of people will have heard of and used throughout their mobile phone history.
They are the companies that build and maintain national network infrastructure, and the ones that all of the MVNOs rely on for mobile connectivity.
Another part of their focus is investing in tower networks, developing new technologies such as 5G standalone and preparing for the next generation of connectivity, such as 6G.
Importantly, MVNOs are not direct infrastructure competitors to MNOs, they simply expand the reach of the network to deliver it to additional customers.
The two must collaborate to ensure that network investment and service innovation evolve together, both at the infrastructure layer and the experience layer.
What differentiates the various MVNOs on the market?
The MVNO sector prides itself on specialization, generally across value-driven providers, international connectivity providers, data-focused providers and brand driven providers.
No MVNO is the same and while some aim to deliver across multiple categories, they leave the choice up to the consumer for what they want to prioritize within their mobile plan.
For value-driven providers, the focus is on affordability within simple pricing structures, offering flexible contracts or SIM-only deals that are particularly aimed at the more affordable end of the market.
International connectivity providers are designed more with global use cases in mind, such as those with family and friends overseas or those who travel a lot, offering competitive international calling and roaming.
There are also providers focused heavily on data, with higher allowances that tailor to streaming, social media and consumers who are reliant on mobiles as their main electronic device.
Particularly over recent years, there’s also been a trend of retailers, fintech’s and other digital platforms launching their own MVNO offerings, looking to take advantage of their existing customer bases and relying on their trusted brand recognition.
As the use of technology has continued to grow, so has the number of MVNOs in the market. The current global MVNO count today stands around 2,100, representing more than a 60 per cent increase over the last decade, with Europe and APAC accounting for around 70 per cent of that total.
Much of this growth comes from MVNOs’ ability to understand the diverse needs of various customer groups and tailor mobile plans more effectively than traditional operators.
MVNOs have made their mark by understanding the different mobile plan needs of consumers and tailoring their services more than traditional operators.
The future of MVNO
The way we communicate and connect continues to change every year. Mobile experiences are getting faster and much more flexible as eSIM adoption rises, digital-first services become the standard, and 5G continues to roll out.
These changes are increasing customer expectations and giving MVNOs new opportunities to rethink how people stay connected.
As the industry starts to prepare for future technologies like 6G, it is clear that the future of mobile will be shaped just as much by the customer experience as by the technology behind it.
eSIM adoption is a major shift for the market, removing the need for a physical SIM card and therefore reducing the barrier to entry, as users can activate or switch providers completely digitally.
For MVNOs, eSIM simplifies customer acquisition with fully digital service models, and becomes particularly appealing around holidays and travelling due to the ease of international connectivity across countries, EU roaming services offered by some providers, and travel-friendly plans.
Digital-first telecom services are another area where a broader shift is being seen, with mobile apps replacing retail stores.
Consumers are switching towards the convenience of instant activations, flexible bundles and the ability to manage their account in real-time. This is an environment well-suited to MVNOs due to their ability to scale these services faster than large network operators.
At present, the telecoms market is working to rollout 5G networks to improve the speed and reliability of mobile connectivity, while enabling new services such as cloud gaming, streaming and remote work. But the future of this within the broader technology roadmap is 6G, expected around 2030.
As MNOs lead the technical development of networks to support 6G, with trials expected later this decade, MVNOs will play a key role in translating those capabilities into accessible services for users through offerings such as flexible data models and cross-border connectivity.
Shaping the future of connection
Mobile connectivity is a staple in everyday life, powering how people communicate and how they access essential services such as banking, education, healthcare and entertainment.
This increased reliance on digital, compounded by rising consumer expectations has driven a market shift towards more providers, MVNOs, and the need for more flexible, tailored mobile plans to service customers.
As MVNOs provide the infrastructure that powers connectivity, it’s the MVNOs that bring the choice, competition and innovation to the market.
Particularly as technologies such as eSIM and 5G shape the telecom landscape of the future, MVNOs will play a crucial role in ensuring innovation reaches the end customer in an affordable and accessible way.
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