What are MVNOs and Their Impact of Phone Plan Pricing and Value?

Updated on 21 Oct 2025

Turn the clock back 10 to 15 years ago and most people were paying for a 24-month contract for their phone plan and closely monitoring their data caps of just a few gigabytes.

Today, that situation has changed. Now, you can easily find plans offering hundreds of gigabytes of data, unlimited calls, and even regional roaming at an affordable price.

What caused this dramatic shift in the Singapore mobile market? The answer is the rise of Mobile Virtual Network Operators (MVNOs). These new players provided an alternative to the traditional telco model, kicking off an era of affordable sim-only mobile plans in Singapore.

Let’s explore what is MVNO in telecom, how they work, and compare the most affordable mobile data plans Singapore has available from MVNO providers.

What are MVNOs?

So what are MVNOs?The term MVNO stands for Mobile Virtual Network Operator. An MVNO is a mobile service provider that sells connectivity to you but does not own the physical network.

• They don't own: Cell towers, underground fiber cables, or the licensed wireless radio spectrum.
• They sell: Your SIM card, billing, customer service, and the mobile plan.

MVNOs operate by purchasing network capacity at wholesale rates from the main network owners, called Mobile Network Operators (MNOs).

In Singapore, every MVNO uses one of the three main networks:

1. M1
2. Singtel
3. StarHub

So if your MVNO is hosted on M1's network, you get M1's coverage. The MVNO manages everything else, but the signal you receive comes from the host MNO.

A Quick Comparison Between an MVNO and a Telco Service Provider (MNO)

Why are MVNOs More Affordable? The Economics of "Virtual" Operation

MVNOs offer mobile plans that are typically more affordable as they keep operational expenses low. Their ability to deliver SIM only plans with low cost monthly subscriptions in Singapore comes from four key cost advantages:

1. Zero Infrastructure Costs

The biggest cost for any MNO is the massive investment in physical infrastructure. MVNOs simply bypass this entirely.

• They avoid the multi-billion dollar costs of building and maintaining cell towers and network licenses.
• They pay a discounted, negotiated wholesale fee to the MNO for accessing their existing network.
• This saving is the primary reason for lower retail prices.

2. Lean, Digital-First Operations

MVNOs are designed to run digitally, which minimises their daily expenses.

• They do not operate expensive physical retail outlets across Singapore.
• They use automated systems to handle billing, plan changes, and data monitoring.
• Customer support is managed via cost efficient methods like chat and in-app support, reducing manpower costs.

3. Monetising Excess Capacity

MNOs have invested heavily in robust national networks, which means they often have "spare" bandwidth, especially during non-peak hours.

• MNOs sell this unused capacity to MVNOs at a wholesale discount.
• MVNO subscribers fill this excess capacity at a cheaper rate than full MNO customers.
• This allows MVNOs to offer cost efficient SIM only plans for everyday use in Singapore whilst MNOs ensure their assets are fully utilised.

4. Targeted Niche Offerings

MVNOs focus on specific, profitable segments rather than trying to cater to every single type of user.

• Customised Plans: They can tailor plans heavily towards high-data usage, specific regional roaming (e.g., Malaysia), or highly flexible month-to-month terms.
• No Costly Perks: They maintain maximum cost efficiency by avoiding expensive handset subsidies or bundled subscriptions (like free Netflix or Disney+), which MNOs use to justify higher prices.

Who are the Major MVNO Players in Singapore?

Here is a list of some of the MVNOs in Singapore and their host network.

Comparison between MVNO SIM-Only Plans in Singapore, Which Are the Most Affordable?

Here are some of the most affordable mobile data plans Singapore has to offer from MVNOs.

Factors to Consider Before You Sign Up with an MVNO

While MVNOs offer some of the most cost efficient SIM only plans for everyday use in Singapore, there are a few trade-offs you should consider before you purchase a mobile plan.

2. Customer Service Structure

MVNOs are built on a highly efficient, digital model to keep costs low.

• Digital-Only Support: Customer service is delivered almost entirely through live chat, in-app support, or email/ticket systems.
• No Physical Stores: There are no physical retail outlets you can walk into for face-to-face assistance.
• Your Preparedness: You must be comfortable troubleshooting issues yourself or communicating digitally.

3. Device Subsidy and Upfront Costs

MVNOs offer no-contract sim plans in Singapore, which means separating your phone from your mobile plan.

• No Handset Subsidies: MVNOs do not offer subsidised phones or 24-month financing packages for the latest flagship devices.
• Bring Your Own Device (BYOD): You must either use your current device or purchase a new one outright at full retail price.
• The Calculation: If you like upgrading to a new high-end phone every year and rely on MNO contracts for a discount, switching to an MVNO might not save you money overall when factoring in the full cost of the device.

4. Perks and Bundles, and Roaming

MVNOs focus on value and may lack the "extras" offered by the MNOs.

• Fewer Lifestyle Perks: You might lose value-added services like free streaming subscriptions (e.g., Disney+), loyalty reward points, or family/home bundle discounts.

Is an MVNO Mobile Plan Right for You?

To answer the question “What are MVNOs” once and for all, MVNOs are the high-value resellers in the telecom market that lease network capacity from major MNOs to offer cheaper, data-focused mobile plans.

MVNOs have transformed the mobile landscape offering competitive and value-for-money no contract SIM plans in Singapore. If you prioritise budget and value for money, these disruptors now offer some of the best sim only plan options, so whether an MVNO is right for you comes down to your personal priorities regarding customer support and additional perks.