How MVNOs Make Money: Business Models & Profitability Explained

Table of Contents

1. MVNOs 101
2. Types of MVNOs and How They Work
   • Branded Reseller (Skinny MVNO)
   • Light MVNO (Service Provider MVNO)
   • Full MVNO
   • Thin MVNO
   • Thick MVNO
3. How MVNOs Make Money
   • Subscription Fees
   • Upselling Value-Added Services (VAS)
   • Device Sales and Financing
   • Strategic Bundling & Niche Markets
4. What MVNOs Spend On?
5. How Spenza Helps MVNOs to Launch and Grow? 
6. What MVNOs Need to Do to Grow Profitable in 2025 – Checklist
7. Conclusion
8. FAQs

MVNOs 101: What They Are?

MVNOs, or Mobile Virtual Network Operators, are becoming a familiar name in the telecom world. You might have seen their SIM cards at the airport or come across budget-friendly mobile plans designed for students, families, or frequent travelers. These companies don’t build or operate their own cell towers. Instead, they lease network access from larger telecom providers and create their own mobile plans for customers.

This setup allows MVNOs to focus on branding, pricing, and customer experience. Many of them offer affordable, flexible options and serve a very specific customer group. But with lower prices and no networks of their own, how do MVNOs actually make money?

In this article, we’ll discuss just that. We’ll break down the different MVNOs business models, how they generate revenue, and what they need to do to maintain MVNO Profitability. Let’s dive in! 

What will you gain from this article? 

• The five main MVNO models and how they differ.
• How MVNOs make money from plans, add-ons, and devices.
• Key costs like network fees, marketing, and software.
• Profit tips like niche focus, strong partners, and smart tools.

Types of MVNOs and How They Work

MVNOs don’t all work the same way. Some MVNOs simply resell services under their own brand, some manage almost everything except the physical network. There are mainly five different types of MVNO, and each model defines how much money they earn. Here are each of the models: 

MVNO Type	Key Functions Managed	Pros	Cons	Example
Branded Reseller (Skinny MVNO)	• None (host handles infrastructure, billing, support)	• Very low startup cost • Minimal operational risk • Quick to launch	• Limited control over pricing/plans • Thin profit margins • Little customer experience control	Walmart Family Mobile, ALDI Mobile
Light MVNO (Service Provider MVNO)	• Billing • SIM management • Support • Marketing	• More control over pricing and UX • Loyalty program support • Moderate operational risk	• Higher cost than Branded Reseller • Depends on host for core network	Tracfone (US)
Thin MVNO	• Customer service • Customized bundles • Host continues handling core services	• More flexible than Branded Reseller • Relatively low cost	• Less autonomy than Full MVNO • Limited compliance/infrastructure control	–
Full MVNO	• Owns HLR/HSS, billing, SIM provisioning • Host provides only radio access	• Full product/pricing control • Negotiable wholesale terms • Easier global scaling	• Highest startup & complexity • Long time-to-market • License often required	Lycamobile (UK), Google Fi (US)
Thick MVNO	• Advanced SIM/billing systems • Still relies on host for some infrastructure	• More advanced than Light MVNO • Good flexibility without owning towers	• High setup cost • Less autonomy than Full MVNO	–

How Do MVNOs Make Money?

Here’s a breakdown of the main MVNO revenue streams in detail. 

1. Subscription Fees

Monthly or prepaid fees customers pay for mobile services such as voice, SMS, and data plans is a common source of income for MVNOs. To get this working, MVNOs buy network access in bulk from larger operators at wholesale rates, then resell it to customers at retail prices.

The profit lies in the margin between the wholesale rate and what customers pay. To stay competitive, many MVNOs keep their pricing affordable while focusing on building volume, more users mean more steady income.

2. Upselling Value-Added Services (VAS)

MVNOs also offer extra services to make the user experience better. These are called value-added services (VAS). Examples include:

• International calling and roaming packages
• Cloud storage and mobile security apps
• Content subscriptions (like music or video streaming)
• Family safety and parental control features

These services usually come at an extra cost and help MVNOs increase revenue per user. Because VAS offerings are often digital, they can scale easily and don’t require much additional infrastructure.

3. Device Sales and Financing

Some MVNOs sell smartphones, tablets, and accessories, either upfront or through installment plans. Financing options, like “buy now, pay later” for phones, help MVNOs appeal to price-sensitive buyers who prefer smaller monthly payments. This MVNO revenue stream boosts sales and keeps customers tied to the MVNO for the long term.

4. Strategic Bundling & Niche Markets

Many successful MVNOs make money by offering bundles tailored to specific audiences. For example:

• A music-focused MVNO might offer unlimited streaming with select platforms
• A travel MVNO could include free roaming in certain countries
• A senior-focused MVNO might bundle basic plans with emergency support features

By targeting niche segments with smart bundling, MVNOs can offer unique value and stand out in a crowded market. These specialized plans often allow for premium pricing, which improves profitability.

What MVNOs Spend On to Stay Profitable?

Just like every other business, MVNOs have to spend a lot to launch and operate as a business, and how much they are spending here decides the MVNO success factors. Let’s look at the key areas where MVNOs spend, and what really affects how much money they make.

1. Wholesale Network Costs

Since MVNOs don’t own the network, they pay bigger telecom operators (called MNOs) to use theirs. These costs cover things like data, voice, and text services. The more customers use, the more MVNOs have to pay, which makes it important to price plans smartly and manage usage carefully.

2. Customer Acquisition Costs (CAC)

It takes money to get new customers. MVNOs often spend on marketing campaigns, website development, retail partnerships, and promotions. These are known as customer acquisition costs. If these costs get too high compared to the revenue each new customer brings in, it can hurt the bottom line.

3. Operational Expenses

All businesses require individuals, equipment, and infrastructure to operate well. For MVNOs, some of these include billing systems, customer support staff, IT services, and day-to-day employees. Even if the MVNO does not operate the entire network, it still must spend money on good operations to make the customers satisfied.

4. Platform and Integration Expenses

To operate their services, MVNOs need adequate software platforms such as ordering systems, billing engines, and usage tracking mechanisms. Others develop these systems in-house, while others engage with MVNEs (Mobile Virtual Network Enablers) to provide them with ready-to-use platforms. In either case, there’s an initial fee and ongoing maintenance to ensure everything works as expected and MVNO success factors are high.

5. Regulatory and Licensing Fees

Telecom is a tightly regulated industry. MVNOs have to follow local rules and pay licensing fees to operate legally. These costs vary by country, but they’re non-negotiable and must be factored into the business plan.

MVNOs spend on several key areas as mentioned above to keep their services running and customers happy. These costs directly impact how profitable they can be. To stay ahead, MVNOs must manage these expenses carefully. And if handling it all feels overwhelming, platforms like Spenza can simplify operations, cut costs, and boost profitability.

How Spenza Helps MVNOs to Launch and Grow? 

Spenza is a connectivity enablement platform that helps businesses launch and grow as MVNOs. It provides operator-neutral, procure-to-pay software with a built-in marketplace of global mobile plans. Using Spenza, businesses can manage wireless spend, automate operations, and offer branded mobile services, without building everything from scratch.

Think of Spenza as “Stripe + Shopify for connectivity.”

Spenza offers:

• SaaS platform & APIs to manage the full telecom lifecycle.
• White-label apps to resell mobile plans under your brand.
• Custom connectivity bundles from multiple global operators.
• Real-time usage tracking, billing, and expense optimization.

Whether you’re a device maker, IoT provider, or reseller, Spenza’s products can help you launch mobile services faster, serve more customers, and reduce costs.

Case Study – Angel Watch 

A great example is Angel Watch, a kids’ smartwatch brand that partnered with Spenza to overcome high network costs, limited regional plan options, and onboarding challenges.

What Spenza Did?

• Custom Plans: Offered low-data, region-specific mobile plans.
• Easy Activation: Enabled plan bundling via Angel Watch’s Shopify store.
• Global Reach: Helped expand to new markets with less operational effort.
• Cost Control: Used a pay-per-use model to reduce unnecessary spend.
• Smart Insights: Delivered real-time analytics to optimize usage.

The Result?

The Angel Watch increased subscriptions, cut costs, improved customer satisfaction, and expanded globally, all with Spenza’s flexible, scalable connectivity platform.

What MVNOs Need to Do to Grow Profitable in 2025 – Checklist

Now that we’ve covered the costs, let’s look at MVNO Profitability Checklist and what helps the business to boost their profits in a fast-moving MVNO market.

• Targeting the Right Niche: Identify a specific segment (e.g., remote workers, IoT device users, eco-conscious customers) and customize plans to address their unique needs—minimizing broad marketing spend while maximizing perceived value.
• Running Efficiently: Automate billing, onboarding, and customer support with AI-driven tools and self-service portals to reduce overhead and accelerate time-to-activation without expanding headcount.
• Establishing Strong Partnerships: Partner with a leading MVNE(Spenza) or wholesale provider to secure volume-based discounts and turnkey telecom infrastructure, enabling rapid rollout and leaner tech stacks.
• Keeping Customers Longer: Deploy AI-powered churn prediction and loyalty programs—such as usage-based rewards or flexible plan adjustments—to boost retention and increase each subscriber’s lifetime value.
• Enhancing Data-Driven Cost Control: Leverage a unified analytics platform(Spenza) to monitor real-time wholesale spend, usage patterns, and CAC vs. ARPU metrics—so you can swiftly adjust pricing, plan allowances, and marketing budgets.
• Innovating with Value-Added Services: Introduce 2025-relevant VAS offerings (e.g., 5G-optimized streaming bundles, private 5G slices for enterprises, embedded eSIM management) to upsell and differentiate without significantly increasing infrastructure costs.

Conclusion

MVNO Profitability is all about getting the right business model, keeping costs low, and executing wisely in terms of expansion.

The most profitable MVNOs are those which have a clear idea of whom they’re catering to, provide more than minimalist plans, and keep their spending in check. They also partner with the right people—such as MVNEs and platform vendors for rapid launches and optimized operation.

With a sound plan and the appropriate tools in place, MVNOs not only survive but thrive profitably in a competitive market. These things make all the difference.

FAQs

Ready to launch your MVNO in 2025? Schedule a free demo with Spenza today and see how our platform can turn your MVNO vision into reality in weeks, not years.