3 Ways MVNOs Help Retailers Grow Revenue in 2025

Retailers are under increasing pressure to grow revenue without adding operational complexity. One emerging opportunity is launching a Mobile Virtual Network Operator (MVNO): a private-label mobile service offered under the retailer’s brand.

With global mobile revenues projected to reach $1.3 trillion by 2028 (PWC), telecom presents a viable path to diversify revenue. Retailers, armed with brand equity and customer access, are uniquely positioned to succeed in this space.

By launching an MVNO, retailers can unlock new revenue streams across three core areas: recurring income, faster profitability, and deeper customer engagement.

1. Recurring Revenue Without Owning Infrastructure

Retailers can now enter the mobile services market without building or maintaining a telecom network. The MVNO model enables:

• No core network ownership
• Pay-as-you-grow pricing models
• Minimal capital investment

This makes mobile services a low-barrier entry point into telecom. In return, retailers gain predictable, recurring revenue, with profit margins of up to 20%, depending on the model and market (McKinsey).

2. Faster ROI Through Brand Leverage

Most retail MVNOs reach profitability in under two years. This rapid return is possible because retailers already own:

• A loyal customer base
• Omnichannel sales platforms (in-store and online)
• High brand recognition

These built-in advantages reduce acquisition costs and speed up customer onboarding, shortening the path to ROI.

3. Cross-Sell Opportunities That Increase Customer Value

Mobile plans can be bundled into existing loyalty programs or used in promotions to drive in-store and online sales. Examples include:

• Earning mobile discounts through store purchases
• Redeeming loyalty points for mobile data
• Receiving personalized offers based on purchase behavior

These strategies increase average customer value and deepen brand engagement.