BT Group is reportedly weighing plans to launch a new low-cost mobile brand as part of a potential strategy to compete with a wave of new market entrants — including fintech heavyweights Revolut and Monzo, both preparing to debut mobile services.
According to the Financial Times, the UK’s largest telecoms company is assessing whether to develop an in-house budget brand or acquire an existing virtual network operator (MVNO) as it explores opportunities to re-enter the value end of the mobile market.
Such a move would represent a strategic shift for BT, which currently offers mobile services solely through its premium EE brand, and has focused its Plusnet subsidiary on broadband since a restructuring last year.
The push comes as virtual network operators — companies that lease capacity from established networks such as EE, Vodafone, and Three — expand rapidly, accounting for 16.5% of the UK mobile market in 2024, according to Ofcom. Analysts expect that share to rise as competition intensifies between low-cost and digital-first providers.
Fintech companies are among the latest entrants. Revolut and Monzo, which boast a combined user base of more than 13 million UK customers, are preparing to launch mobile plans as part of broader efforts to diversify revenue streams and strengthen customer loyalty through bundled financial and telecoms services.
Buy-now-pay-later provider Klarna is also moving into mobile, alongside Fern Trading, part of the Octopus Group investment empire, which is building out telecoms assets across the UK.
“Fintechs are blurring the lines between banking, payments, and connectivity,” said James Barford, head of telecoms research at Enders Analysis. “They already control the digital interface with consumers — moving into mobile services is a natural extension of that ecosystem.”
BT’s exploration of the low-cost segment is being driven by Chief Executive Allison Kirkby, who took the helm earlier this year. Kirkby is understood to be seeking ways to strengthen customer acquisition in a saturated market and broaden BT’s appeal beyond its high-end EE brand.
Industry sources told the FT the plan has the backing of Sunil Bharti Mittal, the Indian billionaire and founder of Bharti Enterprises, which became BT’s largest shareholder in 2024 after acquiring the stake held by French-Israeli telecoms magnate Patrick Drahi.
The potential move aligns with Mittal’s strategic focus on affordability and market scale — principles that have underpinned his success with Airtel, one of India’s largest mobile networks.
The telecoms group is also reviewing the positioning of its BT consumer brand, which retains strong recognition among older customers. Executives are said to be considering reviving BT-branded broadband and mobile bundles aimed at more traditional users less familiar with the company’s newer brands, EE and Plusnet.
BT’s own research reportedly found that brand familiarity remains a key factor in attracting and retaining older customers, particularly as rivals emphasise simplicity and value.
“EE has become a high-performance brand for premium users,” said Sarah Hall, telecoms consultant at Pegasus Strategy. “But the mass market is where volume growth lies — and that’s where fintech challengers are attacking first.”
In response to reports, BT issued a brief statement: “We regularly review our offerings across all our brands to ensure our customers have access to the best products and services on the best network. At present, we have no plans to change our mobile offering.”
However, analysts say BT’s silence may reflect early-stage deliberations rather than a dismissal of the idea. The group faces mounting pressure to defend its consumer market share, as value-driven entrants such as Giffgaff, Smarty, and Voxi continue to lure younger users with flexible, app-based contracts and transparent pricing.
The UK mobile market is undergoing one of its most significant shake-ups in years, driven by digital disruption, consolidation, and rising costs of network investment.
BT has already faced competitive pressure following the Vodafone–Three merger, while also contending with the challenge of monetising its multi-billion-pound investment in 5G infrastructure.
Meanwhile, fintech companies see telecoms as a lucrative gateway into everyday digital services — allowing them to bundle banking, payments, and connectivity under one app and harness rich data insights to drive growth.
“If Revolut and Monzo succeed in turning mobile services into lifestyle ecosystems, it could redefine customer loyalty in both finance and telecoms,” said Dr. Anna Pickering, senior lecturer in digital economy at King’s College London. “BT and the legacy networks can’t afford to ignore that.”
While BT insists no formal decision has been made, the discussions underscore how rapid convergence between telecoms and fintech is forcing incumbents to innovate or risk losing relevance among younger, mobile-first consumers.
If BT proceeds, a low-cost mobile brand could not only protect its domestic market share but also serve as a strategic counterweight to digital challengers seeking to erode the dominance of Britain’s established networks.
Either way, the battle for the UK’s mobile future is no longer just about connectivity — it’s about who controls the customer relationship in an increasingly digital world.
