MVNO Challenges are Real and So Are the Opportunities

An MVNO, or Mobile Virtual Network Operator, is a company that provides mobile phone services without owning its own wireless network infrastructure.

Instead, an MVNO partners with a Mobile Network Operator (MNO)—like Verizon, AT&T, or T-Mobile in the U.S., or similar large carriers elsewhere—that owns the physical network (towers, spectrum, etc.).

The MVNO leases access to this infrastructure and sells mobile services under its own brand to customers. Essentially, MVNOs act as resellers or branded service providers, focusing on marketing, customer service, and tailored offerings rather than building and maintaining the network itself.

How MVNOs Work

The MVNO negotiates a wholesale agreement with an MNO to use its network capacity at a discounted rate, and creates its own brand identity, pricing plans, and customer experience. Some MVNOs offer basic voice/text/data plans, while others target niche markets with specialized services (e.g., prepaid plans, international calling, or IoT connectivity).

Since they don’t invest in spectrum licenses or physical towers, MVNOs have lower capital expenditures, allowing them to focus on customer acquisition and differentiation. Examples of MVNOs include:

• Consumer-Focused: Boost Mobile, Mint Mobile, Tracfone (U.S.), or Virgin Mobile (various markets).
• Niche: Tesco Mobile (UK, tied to a supermarket chain), or Lycamobile (focused on low-cost international calls).
  Business Growth Opportunities for Telcos (MNOs and MVNOs).

MVNO Market Strategy

The MVNO model creates a symbiotic relationship that can drive growth for both MNOs and the broader telecom ecosystem. MNOs often have excess network capacity, especially in less saturated markets or during off-peak times. Selling this capacity to MVNOs generates additional revenue without significant extra cost.

• MVNOs can target customer segments that MNOs might not prioritize, such as budget-conscious users, ethnic communities needing affordable international calls, or specific industries (e.g., IoT for smart devices). This expands the MNO’s reach indirectly, as MVNOs market to these groups under their own brands.
• MVNOs handle their own marketing and customer support, saving MNOs the expense of acquiring and retaining these users directly. For instance, an MNO might not want to invest in a low-margin prepaid segment, but an MVNO can profitably serve it using the MNO’s network.
• MNOs can launch their own MVNOs as sub-brands to test new markets or pricing strategies without risking their core brand image. For example, AT&T owns Cricket Wireless, a prepaid MVNO. With 5G enabling more connected devices, MNOs can partner with MVNOs focused on IoT (e.g., smart meters, wearables) or enterprise solutions, tapping into new revenue streams without building those capabilities in-house.
• MVNOs can carve out profitable niches — such as seniors, students, or rural customers—by offering tailored plans, better customer service, or bundled services (e.g., mobile + streaming subscriptions). Without the burden of managing infrastructure, MVNOs can quickly adapt to trends, like offering eSIM support, flexible no-contract plans, or sustainability-focused branding (e.g., eco-friendly plans).
• MVNOs can collaborate with retailers, banks, or tech companies to bundle mobile services with other products, creating cross-selling opportunities. For instance, a supermarket chain could offer discounted mobile plans to loyalty program members.

The MVNO model offers telcos—both MNOs and MVNOs—a way to maximize network utilization, reach new customers, and innovate without massive infrastructure investments. For MNOs, it’s about monetizing excess capacity and diversifying revenue; for MVNOs, it’s about agility and niche market dominance.

As mobile penetration grows globally and 5G unlocks new use cases, the MVNO ecosystem presents a compelling growth market for the telecom industry.

Expert Webinar with Optiva

In the featured video Optiva hosted an expert panel to explore this topic in detail, covering global opportunities for new-age MVNOs, challenges you can expect and how to overcome them, and real-life experiences and success stories.

Optiva offers MVNO solutions that enable telecom businesses to launch services quickly, monetize new opportunities, and deliver digital customer experiences. These revolve around cloud-native BSS software, which includes tools for real-time charging, billing, customer management, policy control, and monetization.

One of their flagship solutions tailored to the MVNO ecosystem is the Digital MVNx, a fast-track program and pre-configured BSS solution designed to help MVNOs and MVNEs launch and scale their operations efficiently—often within 90 days.

It’s marketed as a reimagined approach to MVNO success, emphasizing speed, cost-effectiveness, and digital-first experiences. The “x” in MVNx stands for the flexibility to support various MVNO models (e.g., full MVNOs, light MVNOs) and MVNEs, which act as intermediaries enabling multiple MVNOs on a host MNO’s network.