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The maturity of the MVNO market in Colombia: Why segmentation and the Full MVNO model are shaping the roadmap to 2026

  • From the ‘penny war’ in the prepaid sector to corporate loyalty platforms and underserved niches.
JSC Ingenium - Blog: The maturity of the MVNO market in Colombia

The telecommunications market in Colombia is undergoing a structural shift in its competitive dynamics. For years, industry discourse was dominated by the consolidation of Mobile Network Operators (MNOs) and spectrum auctions. However, data from the Communications Regulatory Commission (CRC) and trends established this year show that the real momentum in capturing margins and specific niches is coming from Mobile Virtual Network Operators (MVNOs).

Colombia has moved beyond the embryonic phase of the ‘discount MVNO’. With historical penetration figures ranging between 3% and 5% for data, the local market is moving towards the standards of mature European markets (where the market share exceeds 12%). This growth is not being achieved by replicating the mass-market offerings of the major operators, but through surgical segmentation and the integration of connectivity as an embedded value-added service.

The evolution of the technology enabler: From the ‘light’ model to the full MVNO

For an MVNO to be financially viable in the competitive Colombian environment — characterised by downward pressure on ARPU for traditional voice and data services — technical flexibility is a prerequisite. Models based on light integration limit the operator’s capacity for innovation, leaving it at the mercy of wholesale rates and with no control over the customer experience.

The transition to full MVNO architectures is what is unlocking the market’s potential. By having its own network core and independent BSS (Business Support Systems), the virtual operator gains the ability to:

  • Design offers in real time: Create dynamic plans and bundles without relying on the host MNO’s development times.
  • Ensure operational independence: Control billing, the provisioning of eSIM profiles and the complete management of the user lifecycle.
  • Deploy multi-host strategies: The technical capability to negotiate and connect with multiple core transport networks, optimising coverage and transit costs according to the country’s geography.

The three growth drivers in Colombia

Our experience in deploying cloud-native core network technology enables us to identify three sectors with real momentum within the Colombian business ecosystem:

  1. Fintech and Super-App Convergence: Following the global trend of firms integrating connectivity to bolster user retention, financial and consumer platforms in Colombia view the MVNO as a customer loyalty tool. Mobile bills are the most predictable recurring expense; managing them within the company’s own ecosystem dramatically increases the customer’s Lifetime Value (LTV).
  2. Bespoke Corporate and B2B Solutions: Logistics, security and retail companies in Colombia require specialised subnets. Corporate MVNOs allow traffic to be configured, critical data to be isolated and service levels (SLAs) to be guaranteed – something that standard corporate plans from major operators cannot provide.
  3. IoT and Private Networks: With the expansion of 5G infrastructure in the country’s major cities, demand for low-latency machine-to-machine (M2M) connectivity has skyrocketed. MVNOs specialising in industrial IoT are capturing the segments projected to see the highest growth by the end of the decade.

JSC Ingenium’s Approach: Elastic Technology to Reduce Time-to-Market

The challenge of launching or scaling an MVNO in Colombia has never been commercial; it has always been one of integration and financial balance (CAPEX vs. OPEX). JSC Ingenium’s core technology is designed according to the principles of hyper-elastic, cloud-native architecture. This enables new entrants and established operators to deploy carrier-grade infrastructure with an efficient scalability model, drastically reducing negotiation and certification times with the host MNO.

The Colombian market has the macroeconomic scope and niche demand required to double its MVNO market share in the coming years. The question for brands and service providers is no longer whether they should enter the mobile business, but how quickly they can integrate connectivity into their core value proposition.

Juan Carlos Buitrago

Juan Carlos Buitrago

Chief Sales Officer

An Electronic Engineer with studies in Finance and Marketing from the Pontificia Universidad Javierana, where he was recognized as the best student in his class, Juan Carlos has nearly 20 years of experience in industryat companies such as Huawei, Claro, and Jiangsu GTIG Huatai. He recently completed his academic curriculum with an MBA from EAE Business School.

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