MVNO Acquisitions and Valuations: Key Market Trends and Insights

Mobile virtual network operators (MVNO) has always been an attractive acquisition target, especially for traditional mobile operators who have acquired MVNOs to expand their reach and subscriber base.

Additionally, mobile network operators (MNO) entrants like Dish Wireless in the U.S and MásMóvil in Spain have emerged through strategic MVNO acquisitions, shaking up the market dynamics.

MVNOs will continue to be highly attractive acquisition targets, as the competition shifts from being predominantly network based – where the traditional MNOs compete on differences in network quality and coverage – to services based, where competition depend on the ability and flexibility to match service, price and features with specific consumer needs and wants.

Analyzing price per subscriber trends remain crucial in understanding the evolving market dynamics and the value proposition of different MVNOs.

The acquisition prices per MVNO subscriber provides valuable insights into the market’s perception of different MVNOs and their subscriber value. Higher prices per subscriber indicate a premium placed on factors like the MVNO’s brand recognition, customer base demographics, or unique offerings.

The table below provides a general snapshot and does not encompass all MVNO acquisitions during the period.

The price per subscriber metric should be considered alongside other factors like acquisition size, target market, prepaid/postpaid or enterprise-focused offerings, as well as network agreements for a comprehensive understanding.

By way of example, MVNOs catering to specific niche segments, such as seniors or low-income communities, often attracts a higher price tag due to their unique value propositions.

Acquisition trends and price points also exhibit regional variations. Developed MVNO markets like the US and Europe tend to see higher valuations compared to emerging markets.

In addition, it is worth remembering that being acquired by a mobile network operator is far from the only indication of a MVNO’s success. There are plenty of MVNOs enjoying their success without even thinking about being acquired.

Over the last decade MVNOs have been launched to provide services to a company’s existing customer base in order to cross-sell their core business i.e., retailers such as Tesco Mobile and Bait (Walmart Mexico). Likewise a large range of football clubs have launched community/fan based MVNOs tightly integrated with the brand value of the club.

Table: MVNO Acquisition Examples

The subscriber value for the listed MVNOs acquired during the period 2003-2023, ranged between €40 and €830 with an average value of €235 per subscriber

Note:

The T-Mobile’s acquisition of Mint Mobile is not part of the average calculation on price/per sub for two reasons.

• There is no confirmed information about the amount of subscribers.
• The deal also involves Ultra Mobile and the MVNA Plum. Hence the price tag is not only for Mint Mobile and its subscribers.