What’s fuelling the rise of new MVNOs?

Mobile Virtual Network Operators (MVNOs) are having a moment as more high-profile retail brands are adding mobile plans to their core products or services. Fintech firms, energy providers, drinks groups, football clubs, celebrities, and even the family firm of the President of the United States, are sizing up MVNO options, helped by advances in back office and eSIM technology that make it easier to launch services.

Fintech firms have been particularly active this year. Klarna launched services in the US in June, (running on AT&T’s network) with the UK and Germany to follow; Revolut announced plans to launch MVNO services in the UK and Germany; and Monzo also reportedly has a UK mobile service in the works. In Germany, digital bank N26 started an eSIM-based MVNO service in May, running on Vodafone’s network.

In the US, the latest celebrity-backed services include SmartLess Mobile -- from actors Will Arnett, Jason Bateman and Sean Hayes who host a podcast of the same name – and Trump Mobile.

Analyst firm Omdia forecast global MVNO subscriptions to increase 3.6% annually from 2023 to 2029, outpacing the growth of personal mobile subscriptions, which is expected to grow at a rate of 1.6% in the same period.

In the UK, MVNOs represented 19.7% of mobile connections at the end of 2024, up from 14.9% at the end of 2021, according to analyst firm CCS Insight. And MVNOs are growing faster than mobile network operators (MNOs). The number of UK MVNO customers jumped 9.8% in 2024, compared to just a 0.7% increase for the market overall.

Enablers and eSIMs

Part of the reason behind the surge and variety of new mobile providers is the emergence of mobile virtual network enabler and aggregator platforms, known as MVNEs and MVNAs. The rise of eSIMs, which are digital versions of physical SIM cards, also has a role in driving the latest MVNO trends.

“We’re starting the see the emergence of these enablers and aggregators that are making it a lot easier for companies to enter the MVNO space if they want to extend their brands,” said Kester Mann, Director of Consumer and Connectivity at CCS Insight.

For example, US-based mobile service platform provider Gigs, founded in 2020, underpins Klarna’s mobile service. The company has partnered with AT&T in the US and with Vodafone in the UK (which became VodafoneThree, following the merger completion in May 2025). Gigs claims to provide everything a brand would need to launch mobile services – from wholesale connectivity to billing, subscription management and “AI-powered” customer service.

eSIM Go is another example. Based in the UK and launched in 2020, the company has also partnered with Vodafone, prior to its merger with Three, and offers an “automated MVNO-in-a-box”. Companies using its platform include Lufthansa and Western Union.

The use of eSIMs themselves is also an enabler. Indeed, Revolut introduced a travel eSIM service in February 2024 for its UK customers that covers 100 countries, before venturing into becoming an MVNO.

“There is still some way to go in terms of adoption and penetration, but the trend towards eSIM is undeniable…We’re quite bullish on eSIM in the long run,” said Mann.

Back office adapts to virtual players 

Liz Parry, CEO of charging and business support system (BSS) provider Lifecycle Software, said there has been “a real shift” in the market from “full MVNOs” that ran or owned their own core and back office systems to the growth of MVNEs and MVNAs. The last two years have seen more people “speculating about entering the market from a brand perspective”.

“This is not core telephony anymore. This is [about] how you add value to an existing business …  It’s much more about intelligence gathering now, rather than connectivity. That’s the big shift that we are seeing,” she said.

But many of the businesses and brands that aspire to launch a new service “underestimate the complexity and cost”, she said. This is despite the work of enablers and aggregators to lower the barriers to entry for MVNOs.

MVNOs also have less control over their services if they opt for an MVNE or MVNA that is tied to a specific mobile network operator, Parry explained. This is leading some to consider engaging directly with companies like Lifecycle, which offers an MVNE platform called Nexus.

“You buy your platform yourself, which does require a higher budget than some MVNOs recently might have wanted, but it gives you a lot of autonomy…When you go to an MNO and ask to become an MVNO partner using their MVNE platform, you’re beholden to that MNO. We’re certainly starting to see people looking for a bit more freedom than that,” she said.

Danielle Rios, Acting CEO of monetisation platform startup Totogi, also sees limitations in the MVNE model in that MVNOs are tied to the capabilities they offer. Totogi’s cloud-native, charging-as-a-service offering enables MVNOs to cut out the “middleman,” she explained.

The SaaS charging system is “multi-tenant”, which means MNOs can host multiple MVNOs on the same platform. In contrast, traditional charging systems handle the service plans, subscribers and transactions for just one organisation, meaning MNOs would need to set up a separate charger for each MVNO they host, Rios explained.

“Charger implementations easily [take] 12 months…With the Totogi charging system, [it takes] seconds to create a new instance and you’re off and running,” she said.

Such developments in telco back-office systems are another driver for the rise of new MVNOs.

“The software stack is becoming easier to implement. And things like to Totogi giving MVNOs the ability to control their destiny and move at their own speed is attractive,” said Rios.

Opportunity and threat for MNOs?

The rush of new MVNOs creates wholesale revenue opportunities for MNOs. At the same time, they are onboarding service providers that can undercut their own offerings with lower prices and innovative features, while operating at a lower cost base.

CCS Insight’s Mann said that operator attitudes to MVNOs have gone in positive and negative phases over the years and currently, they are viewing virtual service providers more as an opportunity than a threat.

New Zealand operator 2degrees is one that takes a positive view. It wants to be “the first MNO that people think of when they are looking to MVNO,” said Paul Mathewson, Chief Commercial Officer at 2degrees.

“The key for us is leveraging our significant infrastructures investment and getting as many users on our network as possible…2degrees is a growth business, and MVNOs are an important part of our growth strategy,” he said.

The operator’s MVNO offering is built on its own internally developed BSS platform that leverages its entire mobile business and augments its existing wholesale broadband offerings. Indeed, it provides both fixed and mobile wholesale services for some wholesale customers, such as Electric Kiwi that also offers Kiwi Mobile.

2degrees has also partnered with Totogi. “They have been incredibly insightful as we go on this journey… Totogi has a lot of rich features we will leverage. What they are doing in the AI space is incredibly impressive. They are also just great to work with, and our dev teams have a great working relationship,” said Mathewson.