Enders Analysis was mentioned in the Financial Times Lex on "Everyone suddenly wants to be a telecoms group"
22 August 2025Excess capacity and financial pressures have led incumbents to offer MVNOs generous wholesale deals, while the advent of online shopping and e-sims has made it easier for customers to find better deals and then make the switch. E-sims also allow MVNOs to move between different networks without the disruption of mailing customers a new card. Add on cost of living pressures and it is not surprising MVNOs, which tend to be cheaper, added 1.5mn UK customers last year, while traditional operators collectively lost 54,000, according to Enders Analysis.
Enders estimates that MVNOs earn about £10 per user per month, and pay £3 in wholesale charges. That leaves a decent potential profit if they can keep customer acquisition and servicing costs down. For many companies, that is a big if. But fintechs already have customer service infrastructure and millions of loyal users.