Lessons Learned About MVNOs in 2024: Insights from the Frontlines

As a sales director in the US MVNO market, I had the opportunity to engage with approximately 32 potential customers looking to launch MVNOs in 2024. This experience provided valuable insights into the industry’s dynamics and challenges. Here’s an expanded list of key learnings:

1. The Illusion of Uniqueness

Every MVNO believes they’re unique, but true differentiation is rare. I do see value in many from communities, travel discounts, giving away crypto and device protection both insurance as well as cyber security (this one will become more increasingly important).

2. The Critical Question Often Overlooked

Not all MVNOs asked themselves the crucial question: “What would make a customer leave their current provider and switch to us?” This oversight often led to weak market positioning. I will take more than just a cheaper plan to win over customers. One example where it has been done well is MobileX. You try the experience and then their AI engine recommends a plan and keeps your plan up to date based on what you spend.

3. The Niche Paradox

While most understood the importance of targeting a niche, many failed to ensure there was enough value and market size within that niche to sustain a business. I am working with one MVNO that brings a collection of ‘add-ons’ which are free to the customer that really brings value. One of my MVNOs brings device insurance as an add on even when you bring your own device. It is not earth shattering but it is meaningful value.

4. Price Sensitivity vs. Value Perception

The US market showed dynamic pricing for MVNO solutions. Despite tight margins, customers were willing to pay more for perceived value, highlighting the importance of value-based pricing strategies.

5. The Importance of Market Research

Successful MVNOs invested heavily in understanding their target audience, while others relied too heavily on assumptions. I met with one MVNO last year and openly I was blown away by how they understood their target customer. From value all the way to go to market, understanding how they would make the product accessible to the customer showed true understanding.

6. Technology Integration Opportunities

Adopting open standards like TMF APIs enables integration of partner solutions much easier. AI presents many new opportunities for differentiation and dare I say it to make things easier. It is key that MVNOs have an agile and innovative mind set.

7. The Power of Partnerships

Successful MVNOs leveraged strategic partnerships for various aspects of their operations, from device procurement to customer service. Selecting the right partners is key and that means understanding your customer’s needs. I responded to many RFP’s last year and I was surprised that some of the response scorings were low based on too many partners. What is key is to bring value quickly in such a dynamic environment and leveraging partners is the perfect way to do this.

8. Customer Experience as a Differentiator

In a crowded market, superior customer experience emerged as a key differentiator, with AI-driven solutions gaining traction. The rise of Agentic AI (AI agents performing tasks in an automated way to help customers quickly.) I had a recent experience with AT&T when I had issues with my router and the automated experience was exceptional. If you can connect with your customers and make things easier for them it is a true differentiator.

9. The Importance of Agility

MVNOs that could quickly adapt to market changes and customer feedback showed better growth potential. MVNOs that launched solutions perhaps over 24 months ago need to ensure that they made the right choices in terms of solutions but also it is about selecting a solution that is flexible, and the DNA of your vendor should be agile and customer success focused.

10. Data Analytics Driving Decision Making

Successful MVNOs heavily relied on data analytics for everything from pricing strategies to customer retention efforts. I read a book this year (it’s about 4 years old) which was essentially about what makes Google, Amazon, Meta and Apple tick. It is not a surprise that they’re obsessed with data. The power of data extends beyond traditional telco metrics. Innovative MVNOs are now exploring ways to integrate broader customer behavior insights, aiming to build deeper brand relationships, deliver personalized experiences and helping customer feel genuinely understood.

11. The Challenge of Customer Acquisition

Many MVNOs underestimated the cost and complexity of customer acquisition in a saturated market. I am excited about a recent MVNO win that really understands this. The founders have many years’ experiences in customer acquisition, and they understand what the challenges and opportunities. They leverage this knowledge to build that connection with the customer and more importantly making it accessible and simple.

These learnings underscore the complex and dynamic nature of the MVNO market in the US. Success in this space requires a combination of clear value proposition, technological competence, regulatory savvy, and a deep understanding of customer needs. So, what do we see as tends in 2025. Will it be any different? MVNOs will be able to use technology to position themselves more uniquely. With the continued improvements in AI there is an opportunity to create more intelligent, personalized and efficient services are key to MVNO success and some MVNOs like MobileX are already doing it.