In the last 10 years, the number of MVNOs has grown 70% globally, reaching more than 2100. At the end of 2025, there were 2.6 MVNOs per MNO (on average).
The 2100+ figure includes different categories of MVNOs such as consumer, IoT, roaming, migrant, business, and more. Around 10% of MVNOs are brand‑affinity MVNOs, built around non‑telecom brands that already boast strong customer loyalty or community identity.
Not a new trend, but an acceleration is visible
Mobile service launches from brand-affinity MVNOs are not a new trend, but entrants are growing in number, and the mix is becoming more diverse. Importantly, the number of brand-affinity MVNOs has nearly tripled since 2010 (globally), surpassing 200.
Fintech firms, retailers, sports franchises, utilities, creator communities, and media personalities are some of the vertical sectors increasingly launching mobile services to further monetise existing brand equity and deepen customer relationships.
The UK is a notable example. It is the third country in the world by number of MVNOs (after the US and Germany) and is seeing lots of activity in the brand‑affinity MVNO area (e.g. Revolut and Monzo to name a few).
The value of TaaS platforms
The growth in MVNO launches is also being enabled by the rise of MVNO-in-a-box (telecoms-as-a-service or TaaS) platforms provided by vendors, reducing time to market and operational complexity.
Launching an MVNO historically required significant capital, technical expertise and lengthy integration cycles, limiting the entry largely to telecoms-centric players. TaaS platforms are changing this by reducing cost, complexity and time to market, enabling brands to launch mobile services in weeks. As a result, the pool of brand-affinity MVNO entrants is expanding.
Price is no longer the only competitive battleground
The MVNO model, long associated with price-based competition, is being reshaped by non-telco brands identifying mobile as a new strategic layer in their broader customer ecosystem. Fintech platforms, retailers and digital service providers are embedding connectivity into their core offerings – not to compete on tariffs but to strengthen loyalty, monetise brand equity and extend the value delivered in their non-telco customer relationships. The economics are now more accessible through TaaS platforms that address some of the traditional barriers to entry. A new competitive dynamic is therefore emerging: brand-led, value-based differentiation.
eSIM is a natural fit
Contrary to initial ambitions and forecasts, eSIM adoption has been slow. At the end of 2025, eSIM penetration stood at 5% of smartphone connections globally, with nearly 40% of eSIM users in the US, where the launch of eSIM-only iPhones in 2022 has boosted adoption to 40%.
However, data from the last 12 months show that eSIM adoption is accelerating globally, partly boosted by the success of travel eSIM. This acceleration explains why a growing number of MVNOs are seeking to capitalise on the rise of eSIM. Many brand-affinity companies have a large base of digital consumers and established apps. These companies can use their own branded apps to offer MVNO connectivity services, usually underpinned by eSIM.
Beyond being a natural fit, eSIM brings another important benefit to the table. For MVNOs, customer spend on connectivity is the biggest challenge. There is a significant gap between MVNO and MNO customers on monthly spending.
In most of the major mobile markets worldwide, more than half of MVNO customers are categorised as low spending – a much higher proportion than for MNOs (29%). This translates into around 30% lower spend for MVNO customers and therefore lower ARPU. In part, this is driven by commercial propositions (e.g. a significant share of MVNOs continue to be budget brands); in part, it is a function of lower adoption of flagship smartphones and 5G by MVNO customers (compared to MNO customers).
As eSIM is mostly available in flagship smartphones (at least for now), pushing eSIM can help enhance the subscriber mix thus increasing ARPUs. The impact can be significant. For MVNOs, converting 20% of low-spend customers to medium-spend could generate a 14% ARPU increase (on average across major mobile markets).
Existing brand value can help address churn challenges
Churn is the second biggest challenge for MVNOs. MVNO customers show higher churn rates than MNO customers (19% versus 13%). Higher churn applies across all age groups with the difference being more marked for younger adults. Getting a cheaper mobile plan is the stand-out driver of MVNO churn. Beyond cost, network-related factors (e.g. coverage, speed, 5G) are a more prominent reason for churn than bundles (e.g. getting content or services bundled with connectivity) across all ages.
The ability to lean on an existing trusted brand, a loyal customer base, and pre‑built distribution channels can be a structural advantage for brand-affinity MVNOs that other MVNOs may not have – this offers protection against churn risks.
Survival chances are higher
Survival has been a challenge for many MVNOs in the last 10 years. While a large MVNO presence in a country often signals ease of entry, it does not signal long-term viability. Successful MVNO operation requires more than easy entry. For example, the top three MVNO markets in the world – the US, UK and Germany – boast the highest number of active MVNOs, but they also show low/medium survival rates, with many MVNOs eventually shutting down.
Brand‑affinity MVNOs certainly have (significantly) higher chances of survival. Their KPIs may also not be exclusively linked to the MVNO business. So far, only a very limited number of brand-affinity MVNOs have reached 5–10% mobile market share though. Will any of the new entrants raise the bar?
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