BT Sees Opportunity to Revamp Mobile Offering as Fintech Rivals Move In
In a bid to stay competitive in an increasingly crowded UK mobile market, BT Group is reportedly considering the launch of a low-cost mobile brand. The move comes as fintech companies like Revolut and Monzo plan to enter the space with their own mobile services.
According to reports, the telecoms giant is exploring options to create a new budget-friendly brand or acquire an existing virtual network operator (VNO) to tap into the growing demand for affordable mobile plans. This strategy shift would mark a departure from BT's current focus on its premium EE brand, which only offers mobile services.
BT's decision to expand its broadband offerings under the Plusnet and EE brands has been widely seen as a way to attract older customers who are more familiar with these brands. However, this approach may not be enough to keep pace with the growing number of virtual network operators (VNOs) in the market.
Last year, VNOs accounted for 16.5% of the UK mobile market share, and analysts predict that figure will continue to rise. Revolut and Monzo's plans to launch mobile services earlier this year are expected to put pressure on traditional incumbents like VodafoneThree and EE.
The fintech companies' entry into the mobile market is part of a broader trend of businesses diversifying their offerings in response to changing consumer demands. Klarna, the buy now, pay later provider, and Fern Trading, backed by Octopus Group, are also moving into mobile services.
BT's plans for a low-cost mobile brand have been met with skepticism by some analysts, who argue that the company may struggle to compete with established VNOs like Lebara Mobile and Voxi. However, others believe that BT's deep pockets and extensive network infrastructure could give it an edge in this space.
The plan is reportedly being driven by BT Group Chief Executive Allison Kirkby, who has the backing of Indian tycoon Sunil Bharti Mittal, a significant shareholder in the company. A spokesperson for BT said there were currently no plans to change its mobile offering, but the company's intentions are clear: it wants to stay relevant in an evolving market that is increasingly being shaped by fintech and VNOs.
In a bid to stay competitive in an increasingly crowded UK mobile market, BT Group is reportedly considering the launch of a low-cost mobile brand. The move comes as fintech companies like Revolut and Monzo plan to enter the space with their own mobile services.
According to reports, the telecoms giant is exploring options to create a new budget-friendly brand or acquire an existing virtual network operator (VNO) to tap into the growing demand for affordable mobile plans. This strategy shift would mark a departure from BT's current focus on its premium EE brand, which only offers mobile services.
BT's decision to expand its broadband offerings under the Plusnet and EE brands has been widely seen as a way to attract older customers who are more familiar with these brands. However, this approach may not be enough to keep pace with the growing number of virtual network operators (VNOs) in the market.
Last year, VNOs accounted for 16.5% of the UK mobile market share, and analysts predict that figure will continue to rise. Revolut and Monzo's plans to launch mobile services earlier this year are expected to put pressure on traditional incumbents like VodafoneThree and EE.
The fintech companies' entry into the mobile market is part of a broader trend of businesses diversifying their offerings in response to changing consumer demands. Klarna, the buy now, pay later provider, and Fern Trading, backed by Octopus Group, are also moving into mobile services.
BT's plans for a low-cost mobile brand have been met with skepticism by some analysts, who argue that the company may struggle to compete with established VNOs like Lebara Mobile and Voxi. However, others believe that BT's deep pockets and extensive network infrastructure could give it an edge in this space.
The plan is reportedly being driven by BT Group Chief Executive Allison Kirkby, who has the backing of Indian tycoon Sunil Bharti Mittal, a significant shareholder in the company. A spokesperson for BT said there were currently no plans to change its mobile offering, but the company's intentions are clear: it wants to stay relevant in an evolving market that is increasingly being shaped by fintech and VNOs.
they've got a solid network and a bunch of cash to throw around, but fintech companies like Revolut and Monzo are already building a reputation for being super affordable and user-friendly. Maybe instead of creating a new brand, they could just focus on improving their existing services and making them more competitive? 
I think it's better if they build on what they've got rather than trying to compete with all the newbies... 
. See, BT is trying to reinvent itself by creating a low-cost mobile brand, but some folks are skeptical about whether they can really compete with the likes of Revolut and Monzo. And you know what? I get it. It's tough when everyone else seems to be jumping on the fintech bandwagon 
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. I mean, BT has a solid network infrastructure and a reputation for reliability. Maybe they can just own it and find ways to make their existing offerings even better rather than trying to be everything to everyone 
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. bt might wanna think twice before jumping on the low-cost bandwagon tho, i mean it's not like they can just replicate what vno's like lebara or vox already do. plus, have you seen how much money these fintech companies are throwing around? 
it's crazy! and let's be real, bt has some serious baggage when it comes to their customer service 
so we'll see how this all plays out i'm kinda intrigued tho
their mobile game, but will they be able to keep up with these fintech giants? revolut & monzo are already making waves in the space, and now klarna & fern trading are jumping on the bandwagon too 
but i gotta agree with the skeptics 
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. these fintech companies have been building their user base for a while now and they know what works. bt needs to focus on improving its own services before trying to compete with the likes of revolut and monzo 
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. If BT wants to get into the game, it's going to need to do a lot more than just slap together a cheap brand - it needs to bring its A-game and show us what it's working with