Why MVNOs can’t afford to ignore Cybersecurity as a growth driver

Simply put, most MVNOs don’t win on scale. They win on difference. But too often, that difference gets boiled down to price, SIM-only deals, or clever branding. Nice, but not exactly bulletproof when churn is high, margins are wafer-thin, and loyalty lasts about as long as a contract term.

Meanwhile, customers are being bombarded with scam texts, phishing links, and fake delivery alerts. Fraudulent mobile activity in the UK alone rose over 40% year-on-year in 2024, according to UK Finance. The public is paying attention; and they’re looking for someone to protect them.

The irony? Most MVNOs still treat cybersecurity as a compliance line item, not a growth lever.

It’s time to flip that.

The differentiation trap

When every other challenger brand is shouting “cheap, flexible, friendly,” you end up in a pricing trench war that nobody truly wins. There’s only so much you can shave off an already lean margin before the economics stop making sense.

In a market where monthly churn for MVNOs sits around 3–4% (compared to 1–2% for MNOs, per Coherent Market Insights), you can’t afford to bleed customers every billing cycle.

Brand loyalty is fragile. Once a subscriber’s data gets compromised, or they get hit by a SIM-swap fraud, they won’t just churn – they’ll never come back. So, instead of asking “How do we make our plans cheaper?”, it’s worth asking: “What would make customers actually trust us?”

Why trust is the last real growth lever

A few years ago, I spoke to the product lead of a UK MVNO. They had slick branding, great tariffs, and an ambitious influencer campaign. But halfway through year one, churn spiked. Then came the blow: a small cluster of SIM-swap frauds. The PR fallout was brutal. “Secure your SIM” became the headline no one wanted.

That crisis forced them to rethink. They embedded network-level protection – device alerts, malicious link blocking, and basic parental filters – and re-launched under a new promise: “Smart. Safe. Sorted.” Within six months, churn in the protected customer segment dropped by nearly half. And for the first time, they had a story bigger than price.

It turns out that when subscribers feel safer, they stay longer.

Cybersecurity isn’t a cost: it’s a commercial asset

Think of security the way fintechs think of UX. It’s not just a layer of defence – it’s part of the experience. When an MVNO builds protection into the core proposition, it creates everyday, visible value:

Reduce churn: proactive protection anchors trust.
Grow ARPU: upselling bundles like Safe Device, Safe Family, or Safe Wi-Fi converts peace of mind into revenue.
Compete on trust, not tariffs: anyone can cut prices. Not everyone can credibly say, “Your data is safe with us.”

Globally, the telecom cybersecurity market is projected to reach $78.4 billion by 2030 (Mordor Intelligence). That growth isn’t just Tier-1 territory – it’s an open invitation for challengers to compete on something more defensible than cost.

“But customers won’t pay extra for security.”

That’s the classic objection – and it’s half-true. They won’t pay for invisible security. But they will for visible protection.

When you alert someone that you’ve blocked a malicious link or stopped a phishing attempt, they feel the value instantly. It becomes tangible. And once they experience that reassurance, switching providers starts to feel like losing a safety net.

There’s a reason NordVPN grew its global user base by 35% last year – people are buying safety. MVNOs just haven’t packaged it yet.

From commodity to companion

Look at how the insurance sector reinvented itself. It went from dull, fine-print policy peddlers to lifestyle companions. “We’ve got your back.” “Protect what matters.” Mobile operators can do the same – and MVNOs are perfectly placed to lead it. They’re agile. They’re closer to their audiences. They can move faster than lumbering Tier-1s burdened by legacy systems and committees.

A “Safe by Default” MVNO can reposition from budget brand to trusted guardian – the network that doesn’t just connect you, but protects you.

And that’s a platform you can build real loyalty on.

The Playbook (in short)

Step	What it means	Example action
Start with protection	Embed device- and network-level safeguards	Offer phishing link blocking, malware alerts
Make it visible	Communicate protection in-app or via SMS	“We blocked a suspicious link on your connection”
Build the bundle	Tier up for ARPU	Safe Device, Safe Family, Safe Roaming
Use trust as a story	Reframe your brand narrative	Move from “cheap SIM” to “secure connection”

Every operator talks about “experience.” Security is part of the experience.

The bigger picture

Consumers are moving towards brands they can rely on. When a user feels protected – not just connected – they’re more forgiving of price, latency, and even the occasional network blip. That’s why the smart MVNOs of the next decade will treat cybersecurity not as a bolt-on, but as a brand pillar. It’s not about scaring customers; it’s about giving them confidence.

Because when subscribers trust you, they stay. And that’s growth, plain and simple.

Final word

Cybersecurity might not be the sexiest marketing lever. But in a market where everyone’s shouting the same message, trust is the quiet differentiator that actually moves the needle. And here’s the good news: you don’t have to build it all yourself.

At BlackDice, we help MVNOs embed AI-driven protection directly into their propositions – turning security from a technical feature into a commercial advantage.

Because in 2025, a safer connection isn’t just worth paying for – it’s worth staying for.

News & Insights