Going beyond the hype cycle: Perspectives from MVNO World Congress

The annual MVNO World Congress is a great opportunity to discover global perspectives on the MVNO industry. This year, it offered a fascinating glimpse into the evolving mobile landscape, with a clear indication that key technologies like eSIM and IoT are moving beyond hype to become substantial, mainstream features of our industry. Now that the technical aspects, customer use cases, and commercial constructs align, these two technologies are poised to shape the market and create new opportunities for MVNOs.

eSIM and iSIM: transforming business models

One of the most discussed topics at the MVNO World Congress was the adoption and integration of eSIM and iSIM technologies. eSIM and iSIM are functionally similar. iSIM is an evolution in SIM technology, with capabilities integrated into the system-on-chip (SoC) rather than existing as a separate physical component like eSIM (eUICC). Chipmakers such as Snapdragon tout the benefits of enhanced power efficiency and space savings, which are attractive for OEMs (original equipment manufacturers) trying to do more in the ever-shrinking real estate within modern devices.  An important factor for MVNO’s is both eSIM and iSIM use the same GSMA defined remote provisioning procedure.

For consumers and MVNOs, eSIM technology offers several advantages. It simplifies the process of activating services, eliminating the need for a physical SIM card and the associated logistics. This streamlined onboarding process enhances customer satisfaction and reduces operational costs for MVNOs.

As Dario Talmesio of Omdia highlighted during the congress, eSIM is not just a technical upgrade. It’s a strategic enabler that allows MVNOs to tap into new market segments.

Traditionally, MVNOs targeted cost-conscious customers, offering budget-friendly alternatives to the services provided by major network operators. However, with eSIM, the potential market has expanded to include high-end customers who value convenience and seamless experiences, or who want connected companion devices.

The congress also heard how eSIM technology addresses a significant pain point for consumers when it comes to roaming. The hassle of swapping SIM cards when travelling internationally can be a deterrent for many, and the fear of roaming charges further complicates the experience.

Innovative MVNOs are already leveraging this technology to offer more attractive services. For instance, Red Bull Mobile provides a travel-focused service that allows customers to use their Red Bull service in over 100 countries without needing to switch SIM cards. This example shows how eSIM can improve user experience and open new business avenues for MVNOs.

MVNOs must invest in developing the necessary capabilities and evolving their processes to support eSIM technology. While moving to eSIM does require MVNOs to invest in platforms and technologies, the congress showed it will be essential for future-proofing their operations. The fact that, in some markets like the US, major handset manufacturers have already eliminated the physical SIM tray, underscores the importance of this technology in the mobile ecosystem's future.

MVNO’s are also starting to maximise the benefits of eSIM by providing fully digital acquisition and activation of mobile services.  By using the mobile to scan the drivers license and then the face of the applicant, they reduce complexity and improve security.

The stealthy normalisation of IoT

Alongside eSIM, the Internet of Things (IoT) has quietly transitioned from a buzzword to an established, value-add solution. eSIM and iSIM technologies are key enablers of IoT, providing the connectivity required for billions of devices that operate beyond the confines of traditional networks. According to Counterpoint Research, there will be 2.2 billion eSIM-enabled IoT connections by 2030, driven by increasingly clear use cases and the harmonisation of global standards for business IoT.

The adoption of IoT is particularly strong in applications where devices operate away from a fixed power source, such as smart metres, asset trackers, and automotive use cases. The GSMA's efforts to establish a dedicated standard for remotely provisioning and managing IoT devices have further accelerated this growth. We’re working to bring consumer and machine-to-machine (M2M) IoT standards together, which will make it easier for businesses to deploy IoT solutions at scale.

For MVNOs, IoT presents both commercial and technical opportunities. On the commercial side, IoT solutions can help MVNOs shift from selling connectivity to people who download data to selling connectivity to things that upload data. This opens new business models, particularly in underserved segments like agriculture and rural businesses. On the technical front, advances like 5G network slicing will offer MVNOs the ability to create customised network experiences tailored to specific IoT applications, further expanding their market opportunities.

The Rise of Neo-Telcos

While MVNOs have been a staple of the telecom industry for years, Omdia suggested there is a new breed of operators dubbed "neo-telcos". Dario Talmesio of Omdia said the term is borrowed from the banking industry and refers to operators that may not own their entire infrastructure but are laser-focused on delivering superior customer experiences. These digital-first operators are challenging traditional MVNOs by prioritising innovation and customer-centric services.

At the congress, Omdia highlighted how the global MVNO market, after a period of plateauing, is now back on a growth trajectory. This is driven in part by the rise of neo-telcos. These operators are redefining the MVNO landscape, moving beyond traditional ethnic or discount niches to target a broader, more diverse audience.

The success of neo-telcos was underscored by More Telecom's success at the annual MVNO World Congress awards. More, which is one of our valued customers, was awarded MVNO Start-Up of the Year at the congress. More Telecom’s strategic use of integrated marketing, targeting of specific customer segments, and its partnership with Commonwealth Bank, has driven growth and enhanced customer retention, illustrating the potential for neo-telcos to disrupt the market.

Maturing technologies create new opportunities

The discussions at MVNO World Congress demonstrated that eSIM and IoT have matured beyond the early hype to become integral to MVNOs’ future. These innovations are not just technical enhancements but strategic developments that offer MVNOs new opportunities to expand their market reach, enhance customer experiences, and create new revenue streams.

As the mobile landscape continues to evolve, the success of neo-telcos and the growth of eSIM-enabled IoT suggest that the industry is poised for another wave of transformation, driven by innovation and customer-centric strategies.