After missing last year’s event, it was great to be back at MVNO Nation, which moved to a new, purpose-built resort in Alicante for this year’s gathering. The event highlighted just how much the industry continues to evolve. Mobile Virtual Network Operators (MVNOs) are pushing boundaries, exploring new technologies, and finding innovative ways to serve niche markets. This year, several key themes emerged, painting a clear picture of where the industry is heading.
This post will explore my main takeaways from the event. We will cover the rise of travel eSIMs, the potential of embedded connectivity, the critical need for data access, and the growing influence of artificial intelligence. We will also touch on what I felt was missing from the conversation and what it means for the future.
The Foundation: Thriving in the MNO Ecosystem
One point that cannot be overstated is that an MVNO is fundamentally shaped by its environment. The regulatory framework and the Mobile Network Operator (MNO) landscape define the boundaries and opportunities available. For any new MVNO to succeed, it must build a business that complements its host MNO. The goal is to add value to the overall ecosystem, not just exist within it. This symbiotic relationship is the bedrock of a sustainable MVNO business model.
The Rise of the Travel eSIM
While the concept of a travel SIM is not new, the game has changed significantly. The recent unicorn status of companies like Airalo demonstrates the immense potential in this space. The key differentiator today is the end-to-end digital onboarding process. Customers can now purchase and activate an eSIM anytime, whether before they leave home or during their journey.
This convenience creates a compelling alternative to the high roaming fees charged by traditional operators, some of whom still bill $5 or more per day. The potential savings for subscribers are substantial. Once a traveller experiences the ease and affordability of a travel eSIM, they are unlikely to go back to paying exorbitant roaming charges. This shift in consumer behaviour presents a massive opportunity for MVNOs that can offer a seamless digital experience.
Embedded Connectivity: The Next Frontier
Embedded connectivity is emerging as a powerful strategy for companies with an app-first engagement model. With wholesale data rates at historic lows, businesses can provide connectivity to ensure their users always have access to their services. This creates a win-win-win situation. The business increases its value and strengthens its relationship with the customer, the customer gets a valuable perk, and the host MNO benefits from increased network traffic.
Consider a simple example: a bank or insurance company. They could offer a 2GB SIM card to their subscribers. This might cost the company less than £1 per user, but the perceived value for the subscriber could be £5 or more. By embedding connectivity into their core offering, these companies can boost loyalty and create a stickier customer relationship.
Data is the Lifeblood of the Modern MVNO
For any MVNO, understanding its customers is crucial for survival and growth. This understanding is built on data, which comes from several sources. The SIM card itself is a primary source, along with digital engagement platforms like websites, apps, and social media.
However, the network itself holds a rich seam of information that is often untapped. It is vital for MVNOs to establish agreements and technical capabilities to extract this network data from their host MNOs. Initiatives like One API and Camara are beginning to open up MNO networks, and MVNOs must be ready to take advantage of these developments. The alternative, for those who need deeper control and access, is to invest in their own core network.
AI: Powering Engagement and Segmentation
Artificial intelligence is set to play a transformative role for MVNOs.
AI for Customer Engagement
Most MVNOs operate on thin margins, making efficient customer engagement a top priority. Many are digital-first or digital-only to keep costs low. Some community-focused MVNOs have even cleverly recruited their most passionate fans to provide customer support.
AI can significantly enhance these efforts. By leveraging timely data, AI-powered tools can help reduce customer service costs. Chatbots and automated systems can handle common queries, freeing up human agents to focus on more complex issues. In the back end, AI can analyse data to discover customer patterns and predict intent, allowing for more proactive and personalised service.
AI for Segmentation and Launch
It was also noticeable how Mobile Virtual Network Enablers (MVNEs) are now able to spin up new MVNOs on their platforms with remarkable speed. They can essentially “cut and copy” successful models, lowering the barrier to entry and accelerating time to market.
AI can streamline this process even further. It can assist in building digital assets, designing the user journey, and optimising the customer onboarding process. This allows new MVNOs to launch faster and with a more refined customer experience from day one.
What Was Missing? A Broader Tech Perspective
While the discussions were insightful, there was a noticeable gap. The MVNO community needs to stay acutely aware of general developments in mobile technology. The roadmaps, technical choices, and infrastructure shifts of MNOs have a direct impact on MVNOs.
For example, several countries have already shut down their 3G networks. Some have not yet started implementing 5G. How do these developments impact an MVNO’s device strategy, service offerings, and customer experience? These shifts don’t just pose challenges; they also present opportunities for savvy MVNOs that can adapt quickly. A dedicated session on the broader mobile technology landscape would be a valuable addition to future events.
Looking Ahead
Overall, the MVNO market continues to show healthy growth. New markets are opening up, and more operators are embracing the MVNO model as they recognise they cannot meet the specific needs of every customer segment on their own. It was inspiring to see the innovation and drive within the community.
A big thank you to the MVNO Nation team for bringing everyone together. I look forward to tracking the progress of the new MVNOs and seeing how these trends shape the industry in the coming year.
For those who follow my podcast, Digitel Talk, be sure to listen to the upcoming wrap-up session where we will dive even deeper into these topics. It is an episode you will not want to miss.