INDUSTRY WATCH

This offers brands outside the traditional mobile operator space a new and exciting opportunity to extend and deepen the connection with their audience and diversify revenue streams .

We ’ re currently seeing this with financial service brands such as Revolut with their recent eSIM launch to provide customers with roaming services . Supermarket and high street brands have been cashing in on the opportunity for a while , with notable UK examples including Tesco , Asda Mobile and Superdrug . And it ’ s not just brands – celebrity and influencer-backed launches offer a new opportunity to build direct relationships with fans and customers in a way that delivers far greater revenue potential than other , more traditional vehicles .

The MVNO success stories are numerous . Ryan Reynolds , with an estimated 25 % stake in Mint Mobile , has converted three million customers to the service through his involvement , for instance .

However , a straightforward path to launch has not always been the case . Historically , the route to becoming an MVNO was fraught with difficulty , including extensive regulatory requirements , prohibitive upfront investments and intricate host network legacy systems that complicated setups . Moreover , with established operators representing the de facto choice regarding mobile contracts , significant investment was required to create awareness and convince customers to switch .

A changing landscape

The landscape is changing , however . This is , in part , due to consumer behaviour . The cost of living has forced a radical rethink of monthly outgoings , and more flexible , cheaper mobile contracts certainly offer a more attractive proposition in the current economic climate . More durable handsets that make reliance on regular upgrades as part of longer-term contracts less important are helping to create the case .

As established mobile network operators ( MNO ) increasingly lose out in the ‘ race to the bottom ’ with their long contracts and high prices and are increasingly seen as ‘ premium ’ by consumers , they seek ways to monetise their costly network investments . Allowing MVNOs to purchase spare network capacity wholesale is one way of doing this , and it is therefore in MNO ’ s interests to minimise the barriers to entry for new MVNOs .

These two fronts of changing consumer and MNO behaviour collide , creating the perfect storm for MVNOs to launch . But there are other changes unfolding that stand to make the journey even smoother .

e-SIM technology , for instance , is a game-changer for MVNOs . As the physical SIM card gives way to a more agile , digital counterpart , logistical complexities relating to physical SIM provision give way to a more refined model that enables MVNOs to overcome legacy challenges with a minimal cost footprint . This is particularly key for digital brands without a physical footprint , allowing digital-only MVNOs to launch in far shorter timescales and operate at a fraction of historical costs . Moreover , the ability to switch providers seamlessly without the hassle of exchanging physical SIM cards boosts customer satisfaction and engagement .

Improved wholesale rates and turnkey white-label solutions have also facilitated agile market entry , combining speed with cost-efficiency . Regulatory bodies around the world are also increasingly aligning policies to nurture MVNO growth and end the monopolies of big-name MNOs , simplifying legal and procedural priorities critical for new MVNOs .

Kelvin Chaffer , CEO of Lifecycle Software

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