AI must be foundational, not an add-on

When glancing through the previous guest blogs, it is impossible to miss all the promises, hopes and opportunities with AI. The willingness to incorporate AI is clear. So are the hopes that it will disrupt telco in the same way it has law and software engineering. Yet, no one seems to acknowledge the underlying truth of AI, Telco and what actually matters…

AI as an Enabler, Not the Deal-Driver

Sanjay had a great post on the basics of applying AI in telecom, and I agree with much of what he proposed. But it still misses the foundation of how to build a winning MVNO. The promise of AI is indeed intriguing with possibilities to rejuvenate telco once and for all. But in telco, and specifically for MVNOs, AI is an enabler of operational efficiency, not the deciding factor in closing a deal. In fact, customers could not care less about how you use AI in your business. Just as the most basic rule in sales and marketing states: customers do not care about your product. Customers care about the value it gives them from a purely self-interested standpoint.

Truthfully, people perceive connectivity as a solution that should just work. Since the third industrial revolution, it has become a basic utility. Just as people consider gas and electricity as utilities that should just work, connectivity falls into the same category. Unlike industries such as legal or software engineering, AI in telco cannot directly produce output or act as a tool. Hence, the value of an AI feature is limited because it is not a fundamental need. You should only develop features if they (1) solve a problem that was previously unsolvable. Or (2), generates so much value that going back becomes impossible. If you do not meet either condition, you waste resources that you could deploy more effectively.

This means MVNOs should primarily, if not exclusively, use AI to make their product as a utility. It should be seamless and reliable, not a flashy solution. Nominations for awards like Best New MVNO of the Year and Best B2B Offering come from one thing, solving inefficiencies in a clearly defined niche. To build a lasting MVNO, go back to basics. Find what is broken and fix it. This requires more than surface-level fixes. MVNOs must dig into daily customer workflows and expose pain points incumbents ignore.

Fix Inefficiencies, Serve Real Needs

Dedicate time to truly understanding core customer needs. Study the inefficiencies that the telecom industry has cemented as its innovation curve flattened. Break down the opportunity. Map out groups of mobile users, identify the markets where new opportunities arise, and highlight solutions that customers previously could not access. Take some concrete examples to illustrate how the old model created inefficiencies and how challengers can overturn them. For decades, MNOs profit margins have relied on customers not using their full plan allowances. MVNEs have enabled challengers to flip that model and move to fully consumption-based pricing.

Businesses can now pool data globally in a simple, user-friendly way, thanks to eSIMs and MVNEs. These solutions were previously impossible because network providers stayed within their own borders, rarely forming partnerships beyond the occasional merger. Finding and addressing these quickly is how you win and how you make your MVNO stand out. Position yourself alongside incumbents and take market share in your chosen niche by doing exactly that.

Speed Builds the Moat

eSIM is still in its nascent stage, which makes now the opportune moment. As Apple leads the way with their newly released iPhone Air, eSIM will soon be the standard in all phones. Just as headphone jacks disappeared from hardware providers one by one, so will the SIM slot. The rise of eSIM and MVNEs now lets companies solve inefficiencies that network providers previously could not address. In some markets, customers have been waiting years for these solutions. With low barriers to entry, competition will follow. That makes focus critical. Finding a clear problem and serving a defined niche market are more important than ever. As with AI, speed is the greatest moat for an MVNO. Speed of discovery, execution, and iteration. Only with speed can MVNOs utilize AI to scale effectively and deliver a better solution.

Integrate AI deep into your operations model, data structure, and distribution strategy. Use it to reduce costs and sharpen prices. See your product as customers do: a basic utility. Do that, and AI will be your advantage, powering lower costs, stronger reliability, and faster, scalable growth.