The eSIM MVNO Revolution: New Rules for Engagement, Value, and Smart Growth

Once upon a time, buying a mobile SIM card meant standing in a queue at a store, filling out forms, choosing from the limited available plans, and waiting for service activation. I often wondered, "Why can’t I select and activate my SIM from home, at a time that suits me, and with a plan that truly fits my needs?"

Although the physical SIM buying process has evolved, the introduction of eSIMs takes convenience, flexibility, and a frictionless experience to subscribers to the next level. With a simple QR code or a few taps in an app, customers can now activate connectivity instantly — no paperwork, no waiting, no plastic. 

At MVNOs World 2025 in Vienna, one message was clear: eSIM is not the future, it’s the present. According to Counterpoint Research, 80% of all cellular devices shipped by 2030 are expected to be eSIM capable. A continuously evolving and expanding ecosystem of eSIM-enabled devices, from smartphones and tablets to lifestyle devices like the Oura ring, smartwatches, and fitness bands, is making eSIM central to our daily lives.

Welcome to the world of rapidly accelerating eSIM MVNOs

eSIMs are driving the rise of a new generation of digital-first mobile virtual network operators (MVNOs). They're enabling faster deployment and eliminating the costly, time-consuming, and logistically challenging process of managing physical SIM cards. Additionally, they're enabling instant digital activation, faster onboarding, lower operational costs, and tailored service offerings.

More than 400 telco operators are now supporting eSIM services globally. The widespread adoption of eSIM technology creates new opportunities for MVNOs to serve various market segments. Today, major retail groups, fintech companies, consumer brands, utilities service providers, sports clubs, celebrities, and influencers have entered the MVNO space to complement their existing businesses and drive growth through a digital-first model.

Key reasons why eSIM is a game-changer for MVNOs:

Travel eSIM MVNOs: Popular and sustainable if they compete on value (not just connectivity)

One of the most visible use cases driving eSIM adoption today is travel connectivity. With global tourism bouncing back post-COVID, travel eSIM providers have emerged in droves, offering instant local data plans that eliminate roaming fees. eSIM MVNOs, such as Airalo, Holafly, Nomad, and Revolut, are capturing travelers' attention with digital-first and cost-effective telecom offerings.

But here is the big question:

Is the travel eSIM business model sustainable?

Many users activate travel eSIMs for short durations, a week or a month, and often churn after a single use. The market is already becoming saturated, and pure connectivity is fast becoming a commodity. To stand out, MVNO providers will need to do more than just sell data. They’ll need to bundle their low-cost and convenience offerings with value-added services that meet the broader needs of travelers. Otherwise, they face stiff competition from MVNOs and from the competitive international roaming offers of MNOs.

Consider Revolut, which not only offers eSIM with international data plans but also provides an integrated digital mobile wallet offering currency exchange, travel insurance, cross-border money transfer, and additional travel-related services. It’s an innovative business model that leverages existing customer behavior to enhance retention by cross-selling and upselling fintech services. Revolut’s success is reflected by its 35 million customers worldwide. It demonstrates that eSIM is a feature, not the product, and that the offering of value-added financial services achieves customer stickiness.

Airline MVNOs: Can take off with the right distribution channel

One of the most promising yet underexplored eSIM use cases is the rise of airline MVNOs. Airlines are already digitally mature organizations with massive customer bases, established mobile apps, and deep loyalty programs. This established digital ecosystem makes them natural candidates to launch MVNO services, especially with the frictionless onboarding process that eSIM enables.

Airlines have a built-in market by targeting their established base of frequent travelers, customers already primed for mobile services that integrate with their loyalty programs. By offering unique value propositions, such as exclusive travel perks, in-flight connectivity bundles, international data plans, or exclusive access to certain apps and services, airlines can differentiate themselves from traditional MVNOs and capture a profitable niche within the rapidly expanding global MVNO market.

For example, KLM Airlines offers low-cost data eSIMs to travelers at travel destinations in over 190 countries worldwide in partnership with Kolet. However, airline MVNO success hinges on effective distribution (e.g., booking portals, loyalty apps, and in-flight entertainment systems), which means consistently and scalably getting the eSIMs into the hands of the right customers through the proper channels. By visiting the Kolet KLM website or downloading the Kolet app, travellers can install an eSIM on their smartphone and stay connected with their friends, family, and business contacts.

The airline MVNO concept is rapidly becoming successful as more airlines, including Singapore Airlines, Kiwi, Hopper, Exoticca, Vietnam Airlines, Corendon Airlines, and more, have started (or are planning to start) offering mobile connectivity services.

eSIM + utility MVNOs: Powering the next wave of convergence

Another exciting eSIM-driven opportunity lies in utility MVNOs. Utility providers, such as electricity, gas, and water, already serve millions of households and businesses. They hold recurring monthly billing relationships, strong brand trust, and established large customer support operations. These factors position them well to expand into mobile services, particularly with the flexibility eSIM offers.

MVNOs can succeed through:

• Bundled services for households: Imagine a family’s electricity bill and mobile plan bundled together with one trusted provider and a single payment. By integrating eSIM-based mobile services directly into utility bills, providers can create a seamless household experience. 

• Reward programs: Customers can earn credits or discounts on their utility bills when subscribing to mobile services, or vice versa.

• Data-driven personalization: By analyzing energy usage and mobile services usage patterns, MVNOs can gain deep customer insights, allowing them to launch personalized offers such as discounted mobile data for electric vehicle (EV) owners who charge at home during off-peak hours.

• Smart home & IoT integrations: Utility companies are increasingly deploying IoT devices, e.g., smart meters, EV chargers, thermostats, solar inverters, and more. With integrated eSIM-based MVNO services, utilities can embed eSIM connectivity into these devices, ensuring secure, always-on connections without relying on third-party providers.

One of the recent examples of a utility company entering the MVNO/eSIM space is Octopus Group in the UK. Octopus Energy is looking to leverage its large, loyal customer base and plans to launch new eSIM mobile services in collaboration with Y Corporation. The second example is Utility Warehouse (UW), also in the UK, which bundles telecom services alongside its gas, electricity, broadband, and insurance services.

Technology pillars for success: Digital-first DNA fueling MVNO disruption

The success of an eSIM-driven MVNO goes far beyond digital onboarding. It requires a trusted and experienced partner and next-generation BSS platform that can deliver agility, scale, and analytics at every customer touchpoint. This is where Optiva’s AI-powered cloud-native BSS ecosystem plays a critical role. By leveraging cloud-native architecture, open APIs, real-time analytics, and AI-driven automation, Optiva enables eSIM MVNOs to launch innovative services faster, deliver hyper-personalized experiences, and run efficient operations. A range of global MVNOs trust Optiva’s multi-tenant BSS for its benefits, such as:

• Agentic AI-centered: Agentic AI-driven customer experience replaces traditional apps and click-based experience. 

• Digital-first product catalog: To experiment and launch services in hours, not months.

• Context aware: Leverages usage patterns, preferences, and real-time data to personalize and automate real-time experiences.

• Autonomous actions: Can trigger service activation, plan changes, and other tasks without manual intervention.

• Omni-channel integrable: Seamlessly plugs into any digital channel, voice, messaging, and more.

• Onboarding in minutes: In just four easy steps: verify your customer identity, select a preferred number, choose a preferred plan, make a payment, and start browsing. 

• Human-like experience: Powered by natural language interfaces across all digital touch points to deliver exceptional experiences to subscribers.

• API oriented: Tightly integrated with the backend on standardized APIs for a frictionless experience.

Whether it’s a digital-first travel eSIM brand, an airline launching mobile services, or a fintech embedding connectivity into its ecosystem, Optiva gives MVNOs the tools to stay agile, intelligent, and customer-centric.

Final Thoughts: Competing on Value, Not Just Price

eSIM is a game-changer. Its future lies in simplifying the user journey, integrating with enterprise systems, and expanding beyond travel into the mainstream consumer and the B2B market. eSIM MVNO success is driven not only by digital technology, but by the strength of the overall telecom proposition, which adds value for subscribers and builds stickiness. 

The winners will be those who craft clear value propositions, deliver them seamlessly through digital-first channels, and target the right customer segments with precision. With eSIM removing friction, MVNOs can reach customers instantly. However, sustaining loyalty requires bundling services that truly matter to their lifestyle. Supported by AI-powered BSS platforms like Optiva, MVNOs can align value, delivery, and reach, turning innovation into lasting competitive advantage.

Want to know more about Optiva’s 5G-ready proven BSS that powers brands globally? Request a presentation.

By

Sukant Sharma,

Head, Field Marketing,

Optiva