Octopus and Signal Signal Disruption of the United Kingdom mobile market

At first to interrupt the energy and banking sectors, Octopus and Revolution have turned their vision to the Mobile Telecommunications Market in the United Kingdom.

The two groups seek to go into mobile operations, in a movement that could be a threat to industry headlines, dominated by four and soon will be three players.

Revolution announced on Wednesday plans to launch a complete mobile phone telephone plan in the United Kingdom and Germany as part of its “Superrapp”, where several products can be sold in addition to the basic banking services. It already offers an ESIM that customers can use for itinerance abroad, which Revolution says it is their most popular product that is not banking.

The Fintech movement continues a significant shake in the United Kingdom Mobile Telecommunications Market after last week news Exploring the launch From a new mobile operator through his subsidiary, Fern Trading.

“In our opinion, consumers suffer from traditional network offers due to lack of transparency with hidden rates, custom client painful experience, difficult to navigate (design). We are looking to solve all three,” said Hadi Nasrellah, General Director of Revolution Telecoms.

It would not be the first fintech to enter the market: Nubank, which has $ 60 million market capitalization, launched a telecommunications service Named Nuel in Brazil Last year. Others consider it too. London’s rival, Monzo, has not ruled out a similar product in the future, according to a person who knew Fintech’s plans.

Both Revolution and Octopus offers were mobile virtual network operators, or MVNOs, who serve customers, but do not build their own underlying infrastructure.

Instead, Mvnos reduced offers for networks of the four main players, including EE, Virgin Media 02 and Vodafone will soon merge and three – In an effort to save costs. Other well -known MVnos include GiffAffFFFFFFFFFFFFFFFFFFFFFFA VOXI VOXI.

The configuration is a two -level challenge for existing operators, who fight against the virtual competitors of customers, while trying to attract the challenges to sign wholesale offers to use their infrastructure.

“The worst thing the main operators did was let the MVNO stand,” said a privileged industry.

The MVNOs are in no new way: the first world was the virgin cellphone in the United Kingdom in 1999. However, the threat that virtual operators involved in players established in recent years, with the investigation of Enders analysis that showed that by 2024, Mvnos had added 1.6 million customers to their networks.

In contrast, the four main mobile operators in the United Kingdom lost 180,000 subscribers; The first year of history had seen a descent.

James Robinson, a senior analyst at the Research Assembly, said that the trend followed brands known as Tesco and Sky who launched successful mobile operations, which directed existing clients with clusters that also included services such as broadband.

Robinson believed that more than a quarter of all consumers could use virtual suppliers by 2028, up to 16.5 percent in 2024.

“If (Octopus and Revolution) they perform launching operations, these big names could accelerate this growth,” he added.

Karen Egan, Enders Telecommunications Chief, said that the trend was also partly due to the cost of the crisis of life, with consumers most likely to use a cheaper mobile alternative, which many MVNO say to offer.

Egan also said that in addition to consumer competition, an additional battle among network operators also grew to sign bids to bring virtual operators to their networks.

“The MVNOs are receiving wholesalers more and more of the network operators, which are really fighting for other sources of growth of income And have decent levels of spare network capacity, “he said.

Robinson of the Assembly said that competition between networks to host virtual operators could increase after the merger of Vodafone-three ends in the coming weeks, as the new company would have added capacity to accommodate MVNos.

“Now you will have three players on climbing the wholesale market capable of hosting operators; when they join, it’s not strange (new participants) think of mobile options,” he added.

VM02, which houses MVnos included Tesco, is buying an additional network capacity of the fused entity of Vodafone-three, according to a person who knows the situation, which VM02 believes will be an added attraction for the challenges.

However, the impact of the new players was affected by the skepticism of James Ratzer, an analyst of New Street Research, who emphasized the already busy nature of the United Kingdom mobile market.

“New brands will increase competitive intensity, but probably only to a limited degree, as it is already a busy market with other important success stories,” he said.

Analysts have also been questioned by a “surpass” strategy, such as the one represented by Revolution, which felt that the move would not work in the western markets.

Rupak Ghose, a former Credit Suisse search analyst, said that these applications had worked in China due to lack of headlines.

“In the West, in most categories, from social media to taxis to food delivery, there are existing (dominant players),” he said.

EE still see value in collaboration with MVNOs, but believes that many clients would still prefer to opt for a service established with a brand of trust, according to a person who knew the thinking of the company.

Kester Mann, an analyst of CCS Insight, said that the entry of Revolution in particular could demonstrate a challenge for traditional operators due to his well -known brand recognition and a convenient offer.

Octopus, Bt, Vodafone, Three and VM02 refused to comment.

Mann said, “(Revolution) could bring a bit of the same interruption on the mobile services.”