Unlocking Next Generation MVNO Strategies & Revenue Models

The Mobile Virtual Network Operator (MVNO) market presents a dynamic opportunity for telecommunications companies to expand their reach, diversify revenue streams, and capture new customer segments without the burden of owning network infrastructure.

As competition intensifies and consumer demands evolve, telcos must adopt strategic approaches to thrive in the MVNO space.

This guide provides a comprehensive roadmap for telcos to maximize their success in the MVNO field, covering key strategies such as market segmentation, partnership optimization, innovative service offerings, and operational efficiency. By leveraging their existing assets, embracing digital transformation, and aligning with emerging trends, telcos can position themselves as leaders in the rapidly growing MVNO ecosystem.

Exploring MVNO Partnerships: A Strategic Approach for Telcos

Mobile Virtual Network Operator (MVNO) partnerships are a cornerstone of success for telecommunications companies looking to enter or expand in the MVNO market.

These partnerships allow telcos to leverage their network infrastructure, brand, and operational expertise while collaborating with MVNOs to reach niche markets, enhance service offerings, and drive revenue growth. Below, we explore the key aspects of MVNO partnerships, including types, benefits, challenges, and strategies for maximizing their potential.

Successful MVNO partnerships hinge on careful partner selection and flexible, scalable solutions. Telcos must choose MVNOs with strong brand alignment and financial stability to ensure long-term viability. Offering customizable wholesale packages and robust technical support, such as seamless API integration and reliable network performance, empowers MVNOs to innovate and differentiate their offerings.

Clear revenue-sharing models and value-added services, like analytics or IoT platforms, further strengthen these collaborations, fostering mutual profitability. However, challenges like potential cannibalization of the telco’s retail services, complex negotiations, and regulatory compliance require proactive management to maintain a harmonious partnership.

Case Studies: Klarna and Revolut

In June 2025, Swedish fintech giant Klarna announced its entry into the U.S. mobile market with an unlimited 5G mobile plan priced at $40 per month, marking a significant pivot into the telecommunications sector through an MVNO partnership.

This strategic move, leveraging the platform of U.S. mobile services startup Gigs and AT&T’s network infrastructure, exemplifies how telcos can collaborate with innovative non-traditional partners to capture new market opportunities and diversify revenue streams. Klarna’s initiative aligns with a broader trend of fintechs, such as Revolut and N26, entering the MVNO space to enhance their neobank offerings, reflecting the growing convergence of financial services and telecommunications.

Klarna’s partnership strategy showcases several key lessons for telcos. By collaborating with Gigs, a Google-backed platform that simplifies MVNO operations, and AT&T, a leading Mobile Network Operator (MNO), Klarna can offer seamless, no-hassle mobile plans integrated directly into its app, appealing to its 25 million U.S. users.

This approach highlights the value of selecting partners with complementary strengths—Gigs provides technological agility, while AT&T ensures robust network coverage. The partnership enables Klarna to focus on branding and customer experience, offering a simple plan with unlimited 5G data, calls, and texts, addressing consumer pain points like complex switching processes and hidden fees.

Revolut

Revolut, a UK-based fintech giant with over 60 million global users, announced in April 2025 its entry into the telecommunications sector as a Mobile Virtual Network Operator (MVNO), launching mobile plans in the UK and Germany with plans for further expansion, including Poland.

This strategic move, building on the success of its eSIM product launched in 2024, exemplifies how non-traditional players can disrupt the telecom industry by leveraging existing customer bases, digital platforms, and innovative business models. For telcos, Revolut’s MVNO strategy offers valuable insights into forging successful partnerships, targeting niche markets, and embracing digital-first approaches.

Revolut’s MVNO model relies on leasing network capacity from established Mobile Network Operators (MNOs), allowing rapid market entry without the high costs of building infrastructure.

While its operating partners remain undisclosed, Revolut has indicated collaborations with MNOs spanning multiple markets, ensuring robust 5G connectivity. Its mobile plans, priced at £12.50 per month in the UK and €12.50 in Germany, offer unlimited domestic calls, texts, and data, with 20GB (UK) or 40GB (Germany) of EU and US roaming data, all without fixed contracts.

This aligns with Revolut’s customer-centric ethos, addressing pain points like hidden fees, rigid contracts, and poor user experiences. The integration of mobile services into its app, alongside banking and lifestyle features, positions Revolut as a “super-app,” mirroring platforms like WeChat, and enhances customer retention through seamless cross-selling opportunities.