UK electrical appliances retailer AO has launched AO Mobile, its own dedicated mobile virtual network operator (MVNO).

Announced earlier this week, AO Mobile will offer a launch plan of 500GB of data for £12 ($16.23) per month.

The company's mobile service will be provided via Vodafone's mobile network, using the operator's 5G network.

An MVNO doesn’t own or operate its own network infrastructure in the same way that a traditional mobile network operator (MNO) like Verizon or Vodafone does. These MVNOs instead piggyback off of these networks as wholesale providers, offering their own mobile plans.

According to AO, the 500GB plan includes unlimited UK call, unlimited UK texts, 15GB EU roaming allowance, 30-day rolling contract, plus physical SIM and eSIM support.

“We’ve been disrupting the status quo since 2000 to make things better, simpler and cheaper for customers. We want to remove complexity and keep mobile simple so that it’s easy for customers to understand. Our pricing is transparent, our contracts are flexible, and our prices are fixed," said John Roberts, founder and CEO of AO.

"For AO, this feels like the right approach because a mobile phone is so central and critical to everyday life."

MVNOs are becoming more popular, in particular in the UK. Analyst firm FDM CCS Insight forecasts MVNO connections will jump by more than 50 percent from 2026 to 2031.

The same report estimates that MVNOs will represent 30 percent of the UK mobile market within five years.

A number of retailers, in addition to AO, have entered this market. In the UK, Tesco Mobile has been a long-standing MVNO, but in more recent times supermarket chain Lidl has also identified opportunities in this segment. Meanwhile, fintechs such as Revolut and Monzo have also joined the party.