BT Considering Low-Cost Mobile Brand Amidst Growing Competition from Fintech Rivals
BT, the UK's largest telecoms group, is reportedly mulling over launching a low-cost mobile brand, with Revolut and Monzo, fintech companies that have recently announced plans to enter the mobile market, potentially serving as key competitors. The move would mark a significant shift in strategy for BT, which has historically focused on its premium EE brand.
In an effort to stay competitive, BT is exploring options to enter the budget market. This could involve creating a new brand in-house or purchasing an existing virtual network operator (VNO). The group's decision to consider this move comes as virtual network operators have become increasingly popular in the UK mobile market, accounting for 16.5% of the market share last year.
Fintech companies like Revolut and Monzo are set to launch their own mobile services later this year, which could further pressure incumbent players such as VodafoneThree and EE. Other fintech firms, including Klarna and Fern Trading, which is backed by Octopus Group, are also expanding into the mobile market.
In an effort to win over older customers who may be unfamiliar with its new EE and Plusnet offerings, BT is reportedly considering expanding its use of the BT brand for broadband services. The proposal has been driven by the group's chief executive, Allison Kirkby, and has the backing of Indian billionaire Sunil Bharti Mittal, who acquired a significant stake in BT last year.
When contacted about the reports, a BT spokesperson maintained that there were currently no plans to change its mobile offering. However, the company's willingness to reevaluate its strategy suggests that it is taking steps to adapt to an increasingly competitive market.
BT, the UK's largest telecoms group, is reportedly mulling over launching a low-cost mobile brand, with Revolut and Monzo, fintech companies that have recently announced plans to enter the mobile market, potentially serving as key competitors. The move would mark a significant shift in strategy for BT, which has historically focused on its premium EE brand.
In an effort to stay competitive, BT is exploring options to enter the budget market. This could involve creating a new brand in-house or purchasing an existing virtual network operator (VNO). The group's decision to consider this move comes as virtual network operators have become increasingly popular in the UK mobile market, accounting for 16.5% of the market share last year.
Fintech companies like Revolut and Monzo are set to launch their own mobile services later this year, which could further pressure incumbent players such as VodafoneThree and EE. Other fintech firms, including Klarna and Fern Trading, which is backed by Octopus Group, are also expanding into the mobile market.
In an effort to win over older customers who may be unfamiliar with its new EE and Plusnet offerings, BT is reportedly considering expanding its use of the BT brand for broadband services. The proposal has been driven by the group's chief executive, Allison Kirkby, and has the backing of Indian billionaire Sunil Bharti Mittal, who acquired a significant stake in BT last year.
When contacted about the reports, a BT spokesperson maintained that there were currently no plans to change its mobile offering. However, the company's willingness to reevaluate its strategy suggests that it is taking steps to adapt to an increasingly competitive market.