Be Your Own Telco: How Brands Can Launch Mobile Data Plans Without Building a Network

This year, the supermarket chain Walmart welcomed its 20 millionth subscriber to its Mexico-only wireless mobile service, Bait. Walmart has achieved this in under five years, all without building a single mobile mast or developing its own mobile network.

Walmart is an MVNO, or mobile virtual network operator. In contrast to traditional Mobile Network Operators (MNOs), MVNOs require no physical infrastructure to supply customers with mobile plans. Instead, they rent or buy network access from the mobile-mast-supported networks of established telecoms providers like AT&T or Vodafone.

Today, MVNOs outnumber traditional MNOs by more than 2 to 1. Some of the world’s most recognizable mobile brands are MVNOs — the Ryan Reynolds-led Mint Mobile is a recent success story, while the MVNO Boost Mobile is currently the fourth-largest carrier in the US, behind only Verizon, T-Mobile, and AT&T.

As Walmart illustrates, MVNOs are becoming an increasingly attractive proposition for companies outside the traditional telecoms sphere. This market shift is, in turn, enabling the rise of embedded telco – a practice where non-telecommunications brands like supermarkets, airlines, or banks offer their own branded mobile plans.

Societal changes in the ways we use and consume mobile data have further accelerated this process.

The role of MVNEs

Non-telecom brands, from supermarkets to airlines, are increasingly recognizing the value of incorporating communications services into their product offerings. While this is now possible without developing proprietary network infrastructure, it still requires a certain level of specialized telecommunications expertise and experience. Filling this gap are Mobile Virtual Network Enablers, or MVNEs.

An MVNE is any company that provides backend support and ongoing strategic and technical services for MVNOs, including remote SIM provisioning, SIM management, and negotiating new partnerships with MNOs. By paving the way into the telecoms space for other industries, MVNEs have swiftly become an integral element of the wireless mobile ecosystem.

How MVNOs work

While MVNOs and MNOs may provide a similar end product, the way they achieve it is anything but. 

MNOs own their entire network infrastructure, including the mobile masts and satellites required to transmit and receive signals across the radio spectrum.

MVNOs purchase network access from established MNOs and resell it under their own brand. While it may lack the end-to-end control of an established telco, the MVNO model offers some key advantages: 

• Rapid expansion: The most obvious advantage of an MVNO model is that it allows for swift market entry into the traditionally ring-fenced telecommunications industry. The physical infrastructure and detailed product knowledge required to establish a wireless network have long been a barrier to competition in the space. Now, the MVNO market, enabled by MVNEs, is projected to nearly double in value by 2032.

• Targeted customer bases: The MVNO model allows brands to lease or buy wireless network access in specific locations and time periods. This allows brands to offer wireless plans for targeted customer groups without committing to long-term agreements or investing in physical network building. This is particularly attractive to non-telco brands with established customer bases, like supermarkets or airlines.

• Budget pricing: The lower initial expenditure of entering the telco market as an MVNO allows brands to pass on the savings to their customers: many of the world's largest MVNOs, such as Lycamobile or Mint Mobile, expressly target budget-friendly plans.

How MVNOs went mainstream

The first MVNO originated in Denmark back in the late 1990s. As mobile phone sales were booming, and wireless network access was fast becoming a precious commodity, the Danish government ruled that MNOs make their networks available to other companies in an anti-monopoly bid. Soon, other companies followed suit, recognizing the value of a highly competitive mobile market.

Within two years of the new regulations, discount SIM-only MVNOs had cornered 20% of the market share in Denmark, and new brands were rapidly appearing around the globe.

Initially, MVNO services were oriented primarily towards a youthful, budget-conscious, and digitally-aware demographic.

Today, public perception and usage of MVNO services has shifted: the majority of telecoms providers are now MVNOs. The technology has swiftly transitioned into the mainstream.

This has been driven by two key technological advancements: eSIMs and 4G/5G data networks.

1. eSIMs: An eSIM is a software-based SIM profile, which is downloaded to a mobile device rather than inserted via a plastic SIM card. Initially developed for commercial and industrial usage in 2012, the versatility and flexibility of eSIMs have since seen them become the most popular SIM format in consumer smartphones, overtaking physical SIM cards. eSIMs can be downloaded in seconds and are often used for short-term purposes such as travel or as a secondary backup SIM. These spontaneous use cases are well-suited to MVNOs, which often provide budget-friendly, short-term, and prepaid eSIM plans. The mass adoption of eSIM-based tech like Apple Watches and tablets means consumers have provided further demand for temporary eSIM plans across traditional providers and newer, specialist MVNOs.

   Crucially, the software-based nature of eSIMs means they can be sold by any brand with an online platform, like any other digital product. This has allowed a diverse range of industries and companies to enter the market and offer their own branded eSIM services (facilitated by MVNEs and eSIM experts like 1GLOBAL).

2. 4G and 5G networks: As the coverage and data speeds of mobile networks continue to improve, so too has the global demand for wireless data. Newer 4G and 5G networks enable high-traffic mobile data tasks like HD streaming and real-time video calling. This increase in usability has driven a soaring global demand for mobile data. Companies outside the traditional telecoms market are responding to this demand and using MVNOs and MVNEs to launch their own eSIM and prepaid SIM services.

How to become a telco without building a mobile network: Three real-world examples

Supplying branded SIMs through a digital platform or app is a practice known as embedded telco, or white-labelling. In recent years, it has proven to be highly successful on two fronts: not only does it offer brands an additional revenue stream, it also drives customer interaction with the brand as a whole. As embedded telco services become increasingly popular, companies are using them to drive customers back to their core offering. The service is deployed both as a new product and a marketing channel. 

Jazeera Airways

The Kuwait-based low-cost airline Jazeera Airways offers customers the option to purchase an eSIM for their travels directly through their own app. Despite having no previous experience in the telecommunications space, Jazeera made this possible by partnering with global eSIM and embedded telco experts 1GLOBAL. Together, they incorporated the option to purchase and manage travel eSIMs directly into the Jazeera Airways app.

Revolut

The digital-only personal banking app Revolut is one of a number of banking services to offer their own branded eSIMs. By partnering with 1GLOBAL, Revolut can offer its 60+ million customers the option to purchase an eSIM and manage their mobile data usage directly within the app. Not only does this add another product to Revolut’s growing portfolio, it also boosts customer engagement within the app and serves as an incentive to upgrade to the bank’s premium account type, Revolut Ultra.

American Express

MVNO and eSIM services aren’t consigned to digital-only brands. The financial giant American Express entered the white-label embedded telco space in 2024, again facilitated by 1GLOBAL. The card provider further enhanced the appeal for its high-tier Platinum and Gold membership packages by bundling discounted travel eSIM plans, available to purchase directly through Amex.

The future of MVNOs and embedded telco

The widening scope of brands adopting mobile services is predicted to continue in the future. As eSIM adoption and worldwide digital transformation advance, so too will the opportunities and demand for mobile services. Any company with a digital platform has the opportunity to do so: the question is when and how.

This percolation of mobile services across industries, fuelled by the desire to command customer attention, is part of a wider digital trend: the rise of super-apps.

Services like WeChat offer disparate services, from personal messaging to online shopping, within a single platform. As well as Bait eSIMs, Walmart now offers video streaming, online travel discounts, and even pet care – all through its own site and app. Incorporating telecommunications into these apps is essential to their philosophy of maximising user engagement and leveraging their existing user base, rather than risk building a new brand from scratch.

1GLOBAL embedded telco

For brands looking to integrate eSIMs into their digital offering, it’s essential to find the right partner.

1GLOBAL is a digital-first telco and eSIM pioneer that has distributed over 57 million eSIM profiles worldwide. We’ve helped a wide range of clients, from MNOs to retailers and digital banks, embrace the possibilities of eSIM. Find out how your business can integrate 1GLOBAL eSIM solutions by speaking to our team today.