Collaboration, Customer Experience and Convergence Front of Mind at MVNO Nation Europe

I really enjoyed taking part in the MVNO Nation Europe event in Alicante last week. The conference — held over three days — brought together more than 400 people to discuss opportunities for virtual providers and the companies that support them.

The show’s upbeat vibe reflected a part of the market enjoying strong momentum. There were several leading takeaways from impressive presentations and panel discussions.

Find a Niche and Don’t Obsess on Price

The opening keynote, delivered by CEO of Consumer Cellular, Ed Evans, focused on the importance for a mobile virtual network operator (MVNO) to target an under-served segment rather than becoming pre-occupied by price. The US provider, which rides on the network of AT&T, focuses on consumers aged 55 and over, a cohort it believes is overlooked by the main carriers.

Contrary to the popular approach to reduce call times and use AI to limit customer service interactions, Consumer Cellular embraces longer conversations with its customers. Its average call length is 10 minutes according to Mr Evans, and it aims to answer all calls within 60 seconds.

The MVNO — which has just over 4 million customers — also deploys a fully US-based customer care team and aims to recruit staff with a Midwestern dialect, which he believes is easiest for older people to understand. It also designs its retail stores with older people in mind, including complementary coffee and plenty of places to sit down.

Niche MVNOs Catch the Eye

A few novel MVNOs caught my attention. Rebel Telecom, for example, has built a phone and operating system specifically for children and offers dedicated SIM plans for under 18s. The idea is that the phone grows with the child: content becomes broader as they get older, supported by a dedicated parent app. To boost its position in the community, it donates a portion of a customer’s monthly bill to a school of their choice.

Norway’s Fjordkraft Mobil is an energy supplier that has diversified into mobile. Its expansion formed in response to heavy competition in the electricity sector, which has over 100 local suppliers. Since its launch in 2017, it has shifted its strategy away from low prices by offering unlimited mobile data and add-ons like insurance and security services.

Convergence Could Present Growth Opportunity for MVNOs

I was delighted to take part in a panel discussing opportunities for MVNOs in the market for fixed-mobile convergence (FMC). The discussion was timely as only two weeks earlier, FDM CCS Insight predicted that at least five European MVNOs will launch a home broadband service next year.

As mobile prices in many markets continue to slide, FMC offers an opportunity for operators and MVNOs to sell new products. It also supports a loyalty play, as converged customers are less likely to switch to another provider. Further, the approach can help brands engage more with customers, create deeper relationships and build vital trust.

However, as I referenced during the panel, an FMC strategy requires a long-term mindset. MVNOs need to ensure consistency across their offers and create a single customer point of contact for all services. Crucially, they must do more than simply undercut the market: value creation and brand development will be worth more than low-spending net additions.

Shared Goals Are Crucial to a Successful MVNO–Network Operator Partnership

One panel discussion sought to identify the factors behind the successful pairing of an MVNO and its host network. This formed a pertinent topic as virtual providers continue to gain market share at the expense of operators’ own retail brands: in the UK, for example, FDM CCS Insight expects MVNOs to represent over 30% of mobile connections in 2031.

iD Mobile’s commercial and strategy director Gary McCready stressed the importance for an MVNO to offer something unique. He explained that being a part of Curry’s, iD Mobile can add connections to partner network VodafoneThree by positioning mobile to people who may have entered the electronics retailer’s store to buy another product.

Representatives from BT and KPN each pointed to the importance of working together to create value for both sides, backed by joint incentives. They added that there’s no standard MVNO model and that each partnership should be judged on its own merits.

Customer Experience Is a Leading Differentiator for MVNOs

Another panel with representatives from UK MVNOs Tesco Mobile and Honest Mobile debated customer experience. There was consensus over the value of easy-to-understand propositions, transparent offers and consistent messaging, attributes that some large network operators can struggle to achieve.

Panellists talked up the importance of listening to customers to get their feedback, including inviting them to speak over the phone about their experiences, and ensuring that humans as well as AI agents are available to assist with enquiries. When asked about which other sectors they admire from a customer service perspective, there was recognition for the simple and frictionless approach commonplace among neobanks like Revolut and Monzo.

MVNO Nation Europe was a great event. I had many engaging discussions with experts across the sector and would like to thank the organizers for the opportunity to be involved.

FDM CCS Insight provides extensive coverage of the MVNO segment, including a detailed Spotlight report on the UK market. Please contact us for further information.