Analysis: MVNOs and the 5G challege of delivering experiences as well as connectivity

The UK mobile industry is entering a new phase with the arrival of 5G Standalone (5G SA) writes Kadams Radhakrishnan, Chief Technical Director of Lyca Mobile

Unlike early “non-standalone” 5G, which simply added faster radio access on top of existing 4G networks, 5G SA runs on its own cloud-native, software-driven core. This architectural shift makes mobile connectivity more flexible, faster to adapt, and capable of supporting services that depend on ultra-low latency.

For MVNOs this evolution represents both a technical and strategic turning point. It changes how connectivity can be bought, branded, and embedded within digital products.

A standalone core dramatically reduces latency, enables fine-grained control over network behaviour, and allows computing resources to move closer to end users. Together, these capabilities make it possible to guarantee performance for specific use cases, a critical foundation for immersive applications, automation, and real-time systems.

For MVNOs, this marks a shift from selling connectivity as a commodity to delivering experiences and solutions. The programmability of 5G SA opens possibilities that simply were not achievable within a 4G-centric architecture.

UK mobile network operators are already deploying 5G SA, with nationwide coverage planned over the coming years. As these rollouts continue, the wholesale environment that MVNOs depend on will inevitably evolve, creating both new opportunities and new dependencies.

Seizing the 5G opportunity

The greatest opportunity lies in specialisation. MVNOs that focus on specific verticals, such as connected healthcare, transport and logistics, esports, or media production, can use 5G SA capabilities to build premium, tailored services. Low-latency performance, dedicated network slicing, and edge computing integration allow connectivity to become an enabling platform rather than a cost centre.

The rise of Network-as-a-Service (NaaS) models is particularly significant. As network operators begin exposing core functions through APIs, MVNOs may gain the ability to assemble highly customised virtual networks with far greater control than before. Early movers will be in a position to influence how these wholesale offerings are structured, priced, and delivered.

Risks and realities

Access to 5G SA is not guaranteed. Many current MVNO agreements in the UK still provide only enhanced radio access, without full access to the standalone core. As a result, some “5G” offerings do not include the low-latency or slicing capabilities that define true 5G SA. MVNOs will need to renegotiate contracts or partner with hosts that offer full SA functionality if they want to remain competitive.

Commercial complexity will also increase. As network capabilities become programmable, wholesale pricing models are likely to evolve beyond simple volume-based agreements. New metrics, such as latency targets, throughput tiers, and usage thresholds, will become part of commercial negotiations. MVNOs will need stronger technical and procurement expertise to manage this shift effectively.

Device compatibility presents another challenge. Not all handsets, modems, or IoT gateways currently support standalone features, and firmware support for certain frequency bands is still maturing. MVNOs must ensure that the devices they sell or certify can genuinely deliver the experiences they promote.

Security and compliance will grow in importance as virtual operators rely more heavily on distributed cores, edge data centres, and third-party APIs. Questions around data location, sovereignty, and protection will become more complex. Clear governance frameworks and robust audit processes will be essential to sustaining regulatory confidence and enterprise trust.

A measured strategy, focusing on value-added services that can be launched today, while preparing systems and teams for deeper SA integration, is likely to deliver the most sustainable results.

Steering through the shift

To navigate this transition successfully, MVNOs should begin technical and commercial discussions with host networks as early as possible. Understanding when and how each operator will make SA-level wholesale products available is critical for aligning product roadmaps and marketing strategies.

Investment in technical literacy is equally vital. Teams with a strong grasp of virtualised network functions, API orchestration, and edge computing will be best positioned to exploit SA-era opportunities. At the same time, reviewing device portfolios and eSIM provisioning processes can help avoid customer-experience issues as SA access becomes mainstream.

Security, transparent performance monitoring, and partnerships with cloud or edge providers will become key differentiators. MVNOs that can prove service quality and protect customer data will find it easier to command premium pricing, particularly in enterprise and vertical-specific markets.

5G Standalone is more than a network upgrade. It is a reset of how connectivity is designed, packaged, and sold. For UK MVNOs, it offers the chance to evolve from low-cost resellers into orchestrators of digital ecosystems, combining connectivity with intelligent services and applications. Realising that opportunity will require technical readiness, new commercial thinking, and close cooperation with host networks.

The coming years will determine which MVNOs merely survive the 5G transition and which reinvent themselves to lead it.