The Third Generation of MVNOs: How APIs are Changing the Mobile Market

The Chinese app WeChat now has over 1.3 billion users — more than Facebook Messenger, Reddit, or LinkedIn. WeChat, also known as Weixin in China, is the leading proponent of an emerging group of super apps, services where you can hail a taxi, message a colleague, and buy groceries, all within a single app. Interest in super apps has surged over the last two years as technical advances make it possible to converge complex products from diverse providers under the same UI.

While there are only a handful of “true” super-apps – those, like WeChat or Grab, that function as a one-stop shop for nearly every digital transaction – the principles behind them are being enthusiastically adopted by a growing number of brands. The ease with which previously siloed digital services can be incorporated into an existing app or website is leading companies to experiment with products entirely unrelated to their core offering.

Telecommunications services, in particular, are proving to be a successful value-add for apps across industries. Brands are no longer bound by the prohibitive capex or intricate regulatory frameworks of operating a mobile network: almost every aspect of the service can now be outsourced to a third-party mobile operator.

From digital banks offering mobile data plans to telecoms operators selling streaming subscriptions, businesses are embedding an increasingly broad range of services to attract new customers, retain existing ones, and boost regular engagement.

Embedded telco

When shopping for a mobile plan, customers no longer need to open a contract with a mobile carrier when the same services are available through their preferred bank, supermarket, or travel booking platform. This shift is built on eSIM technology, where mobile plans can be simply downloaded from an app or website, rather than inserted via a physical SIM card.

Connectivity is now a driver of customer experience and differentiation. This concept is known as embedded telco – and it’s set to become a central feature of digital commerce.

The false MVNO dilemma

As a fledgling technology, companies must be careful when using white-label eSIMs with their platform, ensuring they choose the partner and business model that aligns with their customer demands.

When a brand elects to incorporate mobile services into its platform, it becomes an MVNO, or Mobile Virtual Network Operator. Unlike a traditional MNO (Mobile Network Operator) like Vodafone or Verizon, an MVNO doesn’t physically own mobile masts or radio spectrum access. Instead, they lease it from an established MNO and resell the connectivity to their customers.

While this offers less control than a traditional mobile carrier, it allows brands to enter the telecommunication market without investing in physical infrastructure.

MVNOs exist on a spectrum from simple eSIM resellers with little to no in-house technical expertise or control over the coverage of their telecoms products to “Heavy MVNOs” that physically own mobile infrastructure like servers and an SM-DP+.

This has given rise to a false dichotomy in the telecoms space: that brands face a choice between speed and stability when launching a telco product.

• Heavy MVNOs with high initial capex and long deployment cycles

• eSIM resellers with limited control over product, customization and scaling.

The eSIM market is booming. FOMO is a natural response, with brands desperate to launch a product before their competitors, and reluctant to invest in the time, money, and talent required to operate a heavyweight MVNO. When the aim of a connectivity product is to boost customer acquisition and retention, maintaining control over pricing and quality is essential – fluctuating prices and coverage that doesn’t match customer needs will likely have the opposite effect.

The third way: an API-powered middle ground

In reality, MVNOs exist on a broad spectrum, with plenty of middle ground. A hybrid model, realized via a specialist partner like 1GLOBAL, is usually the most effective solution.

Working with an MVNE (Mobile Virtual Network Enabler) like 1GLOBAL allows non-telco companies to offload the technical expertise and infrastructure building, while retaining input into the reach, pricing, and coverage quality of their mobile service. The result is a platform that permits swift market entry and service rollouts while permitting management of the service’s features.

Bridging this gap requires a new approach: connecting an MVNE’s technical stack with the buyer’s existing digital platform, integrating both front- and back-end processes to provide a unified customer experience as well as deep infrastructure control.

This is achieved through Application Programming Interfaces, or APIs.

APIs are the bridge that allows two softwares to exchange information. In the case of embedded telco, APIs allow platforms to integrate highly specialized telecommunications products within their own UI.

Full-stack services like 1GLOBAL take this a step further, providing a suite of both front- and back-end APIs:

• Frontend programs that intuitively blend telco services into an existing UI

• Backend APIs that provide deep data analysis and user management

• When partnering with clients that use existing MDM (mobile device management) programs like Jamf, 1GLOBAL’s API suite even enables the automation of simple eSIM management tasks.

The 1GLOBAL approach: infrastructure-grade connectivity with API-first delivery

1GLOBAL’s unique market position as a fully-licensed MVNO and eSIM provider ensures both a first-hand insight into the needs of a modern MVNO brand, and the technical capabilities to fulfil them.

Key to this is the 1GLOBAL core network, a unified mobile network covering 190+ countries. 1GLOBAL partners gain access to this network and operate internationally on a single partnership agreement. The service is built on eSIM-native architecture, developed from the ground up for embedded use cases.

1GLOBAL collapses the stack, with no trade-off between speed and depth. This allows brands to grow their embedded telco products with their ambitions and customer bases.

In a rapidly-growing mobile sector, it’s these data-driven differentiators that truly help businesses stand out from the pack and deliver unprecedented levels of business intelligence. A full spectrum of front- and backend APIs delivers both the desired customer experience, and the tools to manage the mobile service as it scales and evolves with changing customer needs over time.

Embedded telco in action: Lidl and 1GLOBAL

As one of Europe’s largest supermarket brands, Lidl operates a loyalty app, Lidl Plus, with over 100 million users across 30 countries. Recognizing the vast potential of this digital engagement beyond supermarket shopping, Lidl partnered with 1GLOBAL to integrate eSIM plans into the Lidl Plus app. Now, Lidl customers can purchase mobile plans via Lidl Plus.

Not only does this strengthen Lidl’s position as a provider of reliable, affordable everyday items, it also strengthens existing customer relationships. Mobile plans are a daily-used service – by adding the option to purchase and manage them in-app, Lidl ensures boosted customer engagement with its app and diversifies its revenue streams.

For Lidl Plus users, it’s an opportunity to access a highly technical service through a trusted provider and an easy-to-use UI. Customers are free to purchase eSIM mobile plans with no long-term commitments, and without the need to seek out a telecommunications provider or set up another online account or binding contract.

Retaining a familiar UX is vital to the appeal of the service, and made possible by 1GLOBAL’s proprietary API suite. Crucially, the integration has established Lidl as an independent MVNO, laying the groundwork for a scalable mobile business model that can service a rapidly growing number of customers while allowing Lidl authority over its communications services and providing in-depth analytics.

Evolving connectivity demands

The Lidl example highlights how customer mobile expectations have evolved. When eSIMs first debuted on the consumer marketplace in 2017, they were a niche solution used in specific instances where a SIM card was inappropriate, like smartwatches, in-car navigation systems, or cellular tablets. They also found popularity among international travellers, who could temporarily download a local eSIM to avoid roaming fees while abroad.

Their inclusion as an integral element of one of Europe’s largest retail apps signals the eSIM’s mainstream acceptance. In less than a decade, eSIMs have transitioned from a niche solution to a basic connectivity service, illustrated by the growing number of eSIM-compatible mobile devices and rising global adoption rates. In a 2024 report on mobile operators, most respondents expected 80% of their customers would be using eSIMs by 2030.

As eSIMs become the new normal, customer expectations on mobile connectivity have evolved – brands recognize that eSIM services are more than just an added revenue stream. Incorporating a daily-used service like connectivity can transform customer relationships and digital engagement.

When online travel platforms were surveyed on their reasons for embedding travel eSIMs within their sites, personalization and customer loyalty were cited as far more important than revenue. This long-term view must be supported by a scalable service: one that allows platform control over the pricing and coverage of their eSIM services. Only with this level of control can brands deliver a reliable connectivity product that meets customer expectations in the long term, enables personalization, and delivers on their aim of improving customer retention.

1GLOBAL embedded telco solutions

The Lidl integration marks a watershed moment, with eSIM mobile plans no longer limited to digital-savvy travellers and smartwatch users, but to a universal user base. The same pattern can be seen in the banking industry: embedded eSIM plans were first adopted by the app-only neobanks Revolut and N26. Now, even traditional financial institutions like American Express provide eSIM plans.

Brands understand that a daily-used service like a mobile plan offers more than just another revenue stream. With eSIM adoption climbing, these services will only become more attractive in the coming years. Partners like 1GLOBAL show that incorporating mobile plans no longer requires heavy telecoms investment, or relying on lightweight eSIM-reselling models: a flexible, API-based solution, backed by a global mobile network provides the ideal middle ground.

Learn more about how 1GLOBAL helps businesses utilize eSIM services, or contact our team directly to find out more about adding 1GLOBAL embedded telco to your app or website.