Discover how to start an MVNO business with our comprehensive guide. Learn about business models, tech & strategies for a successful MVNO.
Table of contents
Starting a Mobile Virtual Network Operator (MVNO) business can be a lucrative venture in the telecommunications industry. However, it is essential to properly understand the business models and carefully plan and implement the strategies for a successful MVNO business.
In this article, we provide a comprehensive guide on how to start an MVNO business.
Key Notes
- An MVNO is a wireless communications service provider that does not own the wireless network infrastructure.
- Common types of MVNOs include Full MVNOs, Light MVNOs, Branded Resellers, and Service Providers.
- The global MVNO market has grown over the past decades and is expected to reach $118 billion by 2028.
- When starting an MVNO business, consider the following: understanding the market, selecting the best business model, choosing the right technology, familiarizing yourself with regulatory requirements, building partnerships with MNOs, and financial planning.
- Stiff competition, customer acquisition, regulatory compliance, and technological infrastructure are some common challenges faced by MVNOs.
- The MVNO landscape is set to experience high adoption of 5G, IoT and M2M (machine-to-machine) services, and eSIM technology.
What is MVNO?
An MVNO (Mobile Virtual Network Operator) is a company that provides mobile telecommunication services without owning its mobile network infrastructure. An MVNO “rents” network capacity from a Mobile Network Operator (MNO) and then resells it to its customers under its brand name.
Types of MVNOs
There are different types of MVNOs depending on their level of infrastructure ownership, control over service offerings, and business focus.
Below are the common MVNO types.
- Full MVNO – Full MVNO owns core IT infrastructure and network elements, such as the Home Location Register (HLR) and Mobile Switching Center (MSC). It leases only the radio access network (RAN) from the MNO. This model requires a substantial investment in infrastructure but provides greater flexibility and control over the service offerings.
- Light MVNO – Also known as a thin or partial MVNO, Light MVNO relies heavily on the MNO for infrastructure and services, with limited control over network operations. It does not own core network elements but focuses on branding, customer service, and billing. This model requires less investment in technology and infrastructure, making it easier and cheaper to launch.
- Service Provider MVNO – A Service Provider manages customer acquisition, branding, and billing while the MNO handles the network operations. Service Provider MVNOs have their own customer service and support involvement, which leads to more direct control over the customer experience than a pure reseller model. These focus on specific services or applications, often targeting niche markets.
- Branded Reseller – A Branded Reseller primarily focuses on marketing and selling mobile services under their brand. They do not handle technical operations and rely entirely on the MNO for network services and infrastructure. This model allows companies to enter the market quickly with minimal technical investment.

These different types of MVNOs offer varying levels of control, flexibility, level of investment, and risk. The various types allow businesses to choose the model that best suits their needs and goals.
Growth of MVNOs in Telco Industry
The MVNO market has experienced significant growth over the past decade due to increasing demand for affordable and customizable mobile services. Furthermore, the market is expected to grow in the following years.
Advancements in technology, such as IoT and 5G, have enabled MVNOs to offer high-quality services without the need for substantial infrastructure investments. In fact, according to Statista, the 5G technology is predicted to gain high market revenue in the coming years.

Year | 2G | 3G | 4G | 5G |
---|---|---|---|---|
2010 | $420 B | $330 B | / | / |
2011 | $390 B | $395 B | / | / |
2012 | $350 B | $435 B | $40 B | / |
2013 | $300 B | $435 B | $105 B | / |
2014 | $240 B | $400 B | $195 B | / |
2015 | $175 B | $345 B | $310 B | / |
2016 | $135 B | $280 B | $420 B | / |
2017 | $110 B | $225 B | $510 B | / |
2018 | $85 B | $190 B | $555 B | / |
2019 | $70 B | $155 B | $605 B | / |
2020 | $60 B | $110 B | $645 B | $10 B |
2021 | $55 B | $75 B | $650 B | $40 B |
2022 | $50 B | $50 B | $625 B | $95 B |
2023 | $45 B | $40B | $585 B | $150 B |
2024 | $45 B | $25 B | $540 B | $210 B |
Additionally, MVNOs provide a valuable avenue for Mobile Network Operators (MNOs) to monetize excess network capacity and reach niche markets that traditional carriers may overlook.
Given the dynamic nature of the telco industry and the growing demand for tailored mobile solutions, investing in an MVNO business offers a promising opportunity to meet evolving needs and drive innovation in mobile services.
Steps on How to Start an MVNO Business
Below are some of the key steps to consider on how to start an MVNO business:
Market Research
As a first step in starting an MVNO business, conduct thorough market research to understand the landscape, identify potential customer segments, and analyze competitors. Determine the demand for various mobile services in your target market and identify gaps your MVNO can fill.

Choosing the Right Business Model & Strategies
Select the MVNO business model that aligns with your goals. You can choose a Full MVNO, Light MVNO, Branded Reseller, or a Service Provider. Determine your pricing model (e.g., prepaid, postpaid, tiered plans) and ensure it is competitive and profitable. Determine your specific services, such as voice, data, SMS, international roaming, and value-added services. Also, develop strategies for customer acquisition.

Regulatory Considerations
Understand and comply with regulatory requirements in your target market. This may include obtaining necessary licenses, adhering to consumer protection laws, and meeting data privacy and security standards.

Building Partnerships
Form strategic partnerships with MNOs, technology providers, and other key stakeholders. Negotiate favorable wholesale agreements with MNOs to ensure cost-effective access to network services. Also, build relationships with suppliers of devices, SIM cards, and other necessary equipment.

Technology and Infrastructure
Invest in the right technology and infrastructure to provide high-speed, low-latency, and high-capacity connectivity solutions. Implement robust billing and revenue management systems to handle customer accounts and payments. Use CRM systems to help you manage customer interactions, track customer data, and improve customer satisfaction.

Marketing and Sales Strategies
Develop marketing and sales strategies to attract and retain customers. Utilize digital marketing, social media, and traditional advertising methods to build brand awareness and identity for your target market. Establish a strong sales and distribution network.

Financial Planning and Funding
Create a detailed financial plan that outlines your startup costs, ongoing expenses, revenue projections, and funding requirements. You can also consider funding options such as loans, venture capital, or strategic investors to secure the necessary capital for your MVNO.
Monetizing 5G: Unlocking Its Full Potential


Launching your MVNO
The launch of your MVNO is a pivotal moment. It’s your grand entrance to the mobile telecommunications world. To make a lasting impression, consider these key aspects:
- Conduct rigorous testing before the big day to thoroughly test every aspect of your service, including network performance, customer support channels, billing, and payment systems.
- Prioritize customer experience by making it easy to sign up, offering exceptional customer support, and gathering customer feedback.
- Develop a compelling launch campaign by offering attractive introductory deals, leveraging social media, and partnering with influencers to spread the word.

By focusing on a smooth launch, exceptional customer service, and compelling brand experience, you can create a strong foundation for your MVNO’s success. Remember, first impressions matter!
Common Challenges Faced by MVNOs
Navigating the MVNO landscape comes with its own set of challenges. Here are some common hurdles MVNOs face and potential solutions to overcome them.
- Competition: MVNOs often face intense competition from established MNOs and other MVNOs. Focus on niche markets and unique value propositions, such as tailored service plans, exceptional customer support, and innovative features.
- Customer acquisition: Attracting and retaining customers in a crowded market can be challenging. Prioritize targeted marketing and exceptional customer service.
- Regulatory compliance: Navigating regulatory requirements and ensuring compliance can be complex and time-consuming. Stay informed about the latest regulations and engage legal and regulatory experts to ensure compliance.
- Negotiating favorable terms with MNOs: Securing competitive agreements with MNOs can be challenging. Develop strong negotiation strategies and build long-term MNO partnerships.
- Technology integration: Integrating and ensuring seamless technological operations can be demanding. Invest in robust technology infrastructure, use reliable and scalable billing, CRM, and network management solutions, and choose reliable technology partners.
Future Trends in MVNOs
As you start your MVNO business, knowing some key future trends in the MVNO landscape is crucial. These include:
- 5G Adoption: As 5G networks become more widespread, MVNOs will have opportunities to offer top-notch solutions and innovative applications.
- IoT and M2M Services: By offering specialized connectivity solutions, MVNOs can tap into the growing Internet of Things (IoT) and Machine-to-Machine (M2M) markets.
- eSIM technology: The adoption of eSIM technology allows for easier switching between network providers and opens new opportunities for MVNOs.
- Focus on niche markets: The trend towards personalized and niche services will continue, and MVNOs will increasingly target specific demographics and industries with tailored offerings.
- Focus on customer experience: Providing exceptional customer experience will be a critical success factor for MVNOs.
Conclusion
Starting an MVNO business requires careful planning, execution, and continuous adaptation. Following these steps and addressing the challenges can increase your chances of success in this competitive market.
Tridens Monetization for Communications is a converged billing platform tailored to meet the dynamic needs of MVNOs, enabling seamless real-time charging, flexible pricing models, and efficient revenue management.
Whether you’re launching or scaling your MVNO, Tridens Monetization empowers you with the tools to optimize profitability and enhance customer experiences.
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FAQs
Determining the “best” MVNO type depends entirely on individual circumstances. The ideal choice depends on factors such as the target market, desired level of control, and available resources.
MVNOs generate revenue through various means. Primarily, they charge customers monthly subscription fees for services like voice, data, and messaging. They also generate revenue from data usage fees based on customer consumption. Additionally, MVNOs offer and charge for value-added services such as international roaming, premium content, and device insurance..
Several MVNOs have achieved notable success. Virgin Mobile, recognized for its innovative marketing and customer-centric approach, is a prominent example. Mint Mobile has gained popularity in the US market with its affordable prepaid plans. Lycamobile has established a strong global presence, particularly in international markets.
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