eSIM MVNO boom: more choice, more confusion, fewer survivors

The mobile virtual network operator (MVNO) market is experiencing a full-blown resurgence, this time driven by eSIMs, digital onboarding, and the proliferation of mobile aggregators, which promise to get brands to market faster than ever. On the surface, it appears to be a golden era for choice and innovation. Scratch beneath, though, and it becomes clear: this is shaping up to be a boom cycle marked by inflated expectations, fragmented delivery, and a long tail of failed experiments.

It’s never been easier to start (or to get it wrong)

The eSIM has dramatically lowered the barrier to entry. There’s no physical supply chain, no SIM logistics, no retail footprint needed to launch a mobile service. With the right wholesale agreement and a brand, you’re in the game. However, many MVNO founders mistakenly equate access with readiness.

Securing a data agreement isn’t the hard part. It’s everything that comes after: onboarding journeys, customer apps, real-time billing, fraud prevention, porting, customer support, and compliance. These are the things that separate a real telco from a tech demo. And that’s where most MVNOs fall short.

Many vendors promising MVNOs “in a box” only offer part of the puzzle. A slick app, a billing platform, or an integration layer. What’s missing is the orchestration - the deep, cohesive functionality that enables a new brand to actually compete with incumbent MNOs. Customers won’t tolerate clunky activations, unclear usage updates, or limited self-serve. If it doesn’t feel like O2, Three, or Verizon, it won’t survive.

Aggregators: fueling the fire and the fizzles

A driver of this boom is the mobile virtual network aggregator (MVNA) model - aggregators who strike wholesale agreements with major networks and then resell that capacity to would-be MVNOs. The commercial dynamics are simple: MVNAs commit to major volume quotas, often tens of millions in data spend, and then hustle to fill that commitment by signing up as many MVNOs as possible.

The result? Some genuinely promising partnerships, but also a flood of doomed concepts. We’ve seen aggregators pitch mobile propositions to anyone with a logo: golf clubs, charities, e-bike manufacturers, even pet brands. It’s a volume game, and innovation is often second to sales targets.

While some MVNAs focus primarily on reselling access to core network infrastructure, they don’t always provide the full suite of capabilities needed to bring a consumer-facing brand to life—such as branded apps, customer portals, compliance tools, or advanced billing systems. As a result, MVNOs may choose to work with additional technology partners to fill those functional gaps, depending on the MVNA’s offering.

“MVNO in a Box”: useful term, misleading reality

The industry talks about “MVNO in a box” because the market is hungry for simplicity. But in reality, there is no true one-click solution. A serious MVNO needs:

● Consumer-grade app experiences

● Real-time network control and usage management

● Flexible billing and rating

● eSIM provisioning that actually works smoothly

● Payment integration and churn analytics

● CRM and customer service toolsets

● Regulatory compliance, tax handling, and fraud prevention

Doing one of these well is hard. Doing them all in a way that is integrated and scalable is rare. But it’s what powers successful MVNO brands like Smarty, with over 1 million subscribers.

Winners will be strategic, not just opportunistic

We’re at a moment where anyone can technically launch an MVNO. But not everyone should.

The brands that will thrive in this next phase are those with existing customer bases, strong distribution, or unique value-adds. Think retailers with loyalty ecosystems, neobanks offering connectivity as a service, or streaming platforms bundling data access. These companies have real channels and user insight, and they need real platforms to back them up.

The ones that fail are those chasing “cheap” before “right.” We’ve had several MVNOs come to us months after launching, looking to migrate away from vendors who promised quick setups but couldn’t scale. The recurring lesson and age-old adage? Buy cheap and buy twice.

U.S. in focus: big market, bigger gaps

The US, the world’s highest ARPU mobile market, offers major opportunities for MVNO growth. Despite its size and value, it’s still surprisingly underserved by modern enablement technology. Legacy systems, fragmented delivery, and regulatory hurdles such as complex taxation have stifled innovation.

But the tide is turning. We’re seeing demand from mature MVNOs who’ve outgrown their vendors. They’re looking for more agility, more automation, and more insight.

What comes next: fewer but smarter survivors

This MVNO boom is real. eSIM and digital-native telcos are here to stay. But the shakeout is coming. Many will burn through their capital before they find product-market fit. Others will discover that great branding doesn’t compensate for poor onboarding flows or broken billing.