The telecom industry is changing faster than ever before right now, driven by technological advancements, evolving customer expectations, and new business models emerging all the time.
That constant state of flux creates both challenges and opportunities for MVNOs, and the ability to recognise the right opportunities to pursue while managing those challenges is the key to success. So, this MVNO Nation Live post-event report will help MVNOs find that right balance.
In the opening keynote session of MVNO Nation Live 2025, Karim Taga, Managing Partner at Arthur D. Little, outlined the key trends shaping the future of telecoms, and explained how MVNOs can position themselves for success.
A positive outlook with plenty of potential
Despite increasing market saturation, MVNOs are still experiencing promising growth. Several factors are driving this:
- A steady flow of investment from venture capital firms and investors is fuelling innovation and enabling new players to enter the market.
- MNOs are recognising the value of MVNOs to target and engage niche market segments.
- CapEx constraints are encouraging new business models, and MNOs are using partnerships with MVNOs to monetise their infrastructure more efficiently.
- The shift from CapEx to OpEx is making “as-a-service” models more attractive, reducing the up-front investment needed to launch.
With these trends reshaping the telecom landscape, MVNOs are leveraging their agility and flexibility to take advantage of opportunities. However, success requires a constant focus on identifying how technology can create new value for customers.
The transformational role of eSIM
eSIM technology is one of the biggest opportunities for MVNOs today, as it’s fundamentally changing the way operators interact with customers and deliver services.
Karim Taga, Managing Partner at Arthur D. Little (KT): “Never before has technology reshaped the set-up of how operators or service providers are interacting with a customer. You can do so many things now over the air, like upgrade, enhance, cross-sell, up-sell, define the profile, and so forth. This is phenomenal. And this has been exploited by many MVNOs, and it’s, in my view, still driving a lot of innovation.”
“And, clearly, it reduces the complexity. So, if you want to expand to other markets, you don’t need to think of logistics, you just apply the same platform and provide the services. So, it gives you a lot of flexibility, but it reduces the barriers as well, for targeting new segments. Unfortunately, this may hurt some of the MVNOs that are established, because the entry barrier is very low thanks to this technology.”
The travel eSIM market is a smart bet
One of the most promising use cases for eSIM is in international travel. Traditionally, customers have always had to choose between expensive roaming fees or the inconvenience of purchasing a local SIM. But travel-focused MVNOs are now able to offer an attractive alternative.
KT: “Now we have more and more businesses focusing on that segment only, and they’re quite successful. Because the majority of the benefits of eSIM is favouring all the purchase criteria, like ease-of-use, cost, and so on.”
“And this is why we see this sector evolving massively and sometimes impacting the established MVNOs. Travel eSIM providers like Airalo are growing at an astonishing rate, with more than 5 million downloads, and the growth rate is about 200,000 to 300,000 per month.”
And eSIM technology will continue to drive growth as providers can begin to deliver additional services and capabilities to users as well.
New business models and challengers to consider
Going back to the issue of market saturation, it’s important to recognise that MVNOs are no longer competing solely against traditional operators. There are also new entrants from different industries leveraging mobile connectivity to enhance their offerings.
For example, mobile-first banks like Revolut are now beginning to offer mobile services directly within their apps.
Looking back to the travel example, certain airlines may begin exploring built-in connectivity options for certain customers, offering roaming packages that activate automatically upon landing, making it more difficult for MVNOs.
And retail giants now are embedding mobile connectivity into their customer platforms, to try to capture more business from their existing customers.
KT: “This business is not going to stay with the traditional MVNO as we know it. Things have already changed a lot, from MNO to MVNO, but now you have even more new players coming in to provide more added value to their customers. When someone like Uber starts providing this mobile service in their app, integrated, the consumers will just use it for convenience. And that’s a massive change, and this disruption will continue in the future, driven by eSIM.”
Understanding open data architecture (ODA) for MVNOs
As technology evolves, using more open data architecture (ODA) is becoming crucial for MVNOs to remain agile and competitive. Developed by TM Forum, ODA provides a reference framework that simplifies interoperability and accelerates digital transformation within the industry.
KT: “An ODA can help ensure that your MVNO can get the fastest, best service possible across multiple use cases. It’s a driver to reduce complexity and help you become faster in making decisions and reacting to the market.”
“A lot of players have used this framework because it enables a complete transformation of the enterprise architecture you are building in your company. And I think, for MVNOs, it’s very important to follow these developments and see how MNOs are adhering to them.”
“And if you follow this reference model, you’ll be much more effective in eventually connecting with service providers.”
ODA can provide MVNOs with a wealth of benefits, including:
- Faster reactions and time-to-market for new services
- Greater compliance and data governance
- Real-time customer data insights
- Easier scaling of infrastructure.
The role of AI in MVNO innovation
AI is unlocking new opportunities for MVNOs to improve operational efficiency and provide an enhanced customer experience.
Some popular use cases for MVNOs to consider include:
- AI-powered chatbots
- Personalised customer service and experiences
- Real-time data analysis for dynamic pricing and targeted offers
- Automated fraud prevention and security enhancements
- Cost reductions through process automation.
Some MVNOs are already using AI in highly creative ways to create differentiated products and services as well.
For example, Polish operator Cross Mobile now provides AI-powered child protection monitoring on mobile devices. This AI tool helps parents track their children’s phone activity, detect early signs of depression, and prevent exposure to harmful content online.
This is just one example of the infinite ways forward-thinking MVNOs could offer unique new products and services to strengthen their value proposition.
Final thought
KT: “In an increasingly competitive landscape, prioritisng the customer experience is critical.”
Key takeaways: MVNOs can thrive in a rapidly changing telecom landscape by using agility and flexibility to capitalise on emerging trends like eSIM and AI. Travel eSIMs is one particular niche that presents a major opportunity. But MVNOs should focus on providing as much value as possible to their target customers to remain competitive and achieve success.
