Pablo Iacopino
Head of Research and Commercial Content at GSMA Intelligence
In the last 10 years, the number of MVNOs has grown 70% globally, reaching more than 2100. As the consumer market is a major focus for MVNOs, analysing and comparing the behaviour of MVNO and MNO customers (across major mobile markets) offers useful insights than can be used to inform business strategies and commercial decisions.
Drawing from its global consumer survey, GSMA Intelligence compared the behaviour of MVNO and MNO customers across 32 topics to unveil the greatest differences and their commercial implications.
Seven areas where customer behaviour is significantly different
Of the 32 individual topics analysed, 11 show major differences in customer behaviour between MVNO and MNO subscribers; 13 show medium differences; 8 show limited (or no) differences.
The 11 topics showing major differences span seven areas:
- Spend on mobile connectivity
- Churn
- 5G adoption and upgrade intent
- Interest in refurbished smartphones
- Preferences for device sales channels
- Video services
- Travel eSIMThis article focuses on the first three. Spend on mobile connectivity represents the biggest gap: device and 5G upgrades should help
In most of the countries analysed, more than half of MVNO customers are categorised as low spending (versus 29% for MNOs). This translates into ~30% lower spend on mobile connectivity (therefore lower MVNO ARPU).
For MVNOs, converting 20% of their low spenders into medium spenders could generate a 14% ARPU increase (on average across the countries analysed). As around 20% of the low spenders will replace their phone in the next 12 months, MVNOs should focus on helping customers upgrade to medium- or high-end smartphones, including flagship phones (where there is a major gap in adoption).
However, many customers may not be willing to purchase new, high-end devices. As such, promoting pre-owned, refurbished phones (for which there is greater interest among MVNO customers than MNO customers) is important. This should help boost adoption of 5G flagship phones, bringing in higher-ARPU customers.
Churn is the second greatest challenge for MVNOs, but it’s not insurmountable
MVNO customers show higher churn rate (19%) compared to MNO customers (13%). Higher MVNO churn applies across all age groups with the difference being more marked for younger adults.
Getting a cheaper mobile plan is the stand-out churn driver. Beyond cost, network-related factors (e.g. coverage, speed, 5G) are a more prominent reason for churn compared to bundles (e.g. getting content or services bundled with connectivity) across all ages.
Retention strategies should prioritise 25–34 year-olds. This segment shows the highest MVNO churn (30%) and is also the segment spending the most on mobile connectivity, making retention a priority. As this age group shows the lowest price sensitivity, MVNO retention strategies should focus on some of the non-price related factors that drive churn. These include (in order of relevance): offering 5G plans, higher network speeds, and better customer service.
Enthusiasm for 5G is lagging, but there are routes to catch up
Compared to MNOs, MVNOs have a smaller share of customers on 5G (11 pp difference) and a lower consumer intent to upgrade (9 pp difference). On the positive side, willingness to pay extra when upgrading to 5G is 5% for both MVNO and MNO customers.
Customers who are 18–44 years old and prolific users of digital services/content should be the priority target for 5G upgrades, as they are more likely to demand bigger data allowances or even speed-based tariffs (two important 5G monetisation factors). This category accounts for 20–30% of MVNO customers and is a high-spend group; migrating more of them to 5G can help boost ARPUs. Also, MVNOs should explore FWA opportunities, as FWA is the most appealing 5G use case for MVNO customers (beyond mobile connectivity).
More insights
A full report is also available, providing full insight and the commercial implications. The report provides a deeper analysis of the seven areas of difference between MVNO and MNO customers, including the three areas not discussed in this article (i.e. devices, video services, and travel eSIM).
I’ll be attending the MVNO Nation Europe 2026 in Alicante, Spain, in early November. I look forward to connecting with the MVNO industry at the event, while discussing the trends and implications shaping the MVNO market.
