Three Ingredients for an Overdue MVNO Growth Spurt

Twenty-five years after Virgin Mobile pioneered the Mobile Virtual Network Operator (MVNO) model, the market is primed for a new wave of transformation. We’ve identified three critical factors poised to reshape the success of MVNOs today: mergers and acquisitions (M&A), refreshing wholesale agreements, and the evolution of the service delivery platform.

 1. Stay Ahead with Strategic M&A

M&A remains the fastest route to transformation and growth for operators and platform providers (BSS and MVNE). Recent deals illustrate this trend clearly. T-Mobile’s 2023 acquisition of Ka’ena Corporation, which owns Mint Mobile and Ultra Mobile, valued at up to $1.35 billion, is aimed at supercharging its direct-to-consumer offerings. By integrating these well-established MVNO brands, T-Mobile enhances its competitive edge, particularly in the 5G space​. ​M&A is not just about acquiring more subscribers; it’s about gaining technology and market access.

The next wave of acquisitions will surround in mobile ecosystem consolidation. Beyond One and other PE houses are rolling up units of the ecosystem to create a full suite of capabilities from connectivity to platform to service provision. For example, Beyond One’s take-over of the Virgin and Friendi brands in LatAm and Middle East during 2023, and Waterland’s acquisition of Lebara’s European operating companies in August 2024.

2. Renegotiate Your Wholesale Deals

Retail data costs are at an all-time low due to the explosion in data-intensive lifestyle services. This shift in market value away from voice and SMS to data means MVNOs should review and renegotiate wholesale agreements to ensure they reflect current prices. The ongoing $19 billion Vodafone-Three merger in the UK is set to reshape the market by consolidating infrastructure, though concerns remain about its potential impact on wholesale prices for MVNOs. Beyond pricing, clauses related to exclusivity, connectivity upgrades, and exit options are ripe for renegotiation to better align with today’s market realities.

3. Future-Proof with a Customer Driven Loyalty Platform

Platforms have become the backbone of modern digital MVNO operations, integrating everything from payments and social media to logistics and CRM. With the growing range of services like generative AI, marketplace and customer loyalty solutions, a platform’s ability to handle third-party integrations is key to boosting ARPU and remaining competitive. MVNOs need platforms that can support a full suite of applications, enabling seamless interaction with the broader mobile ecosystem.