Revolut has announced plans to launch mobile phone plans for the first time in a move it hopes will disrupt the established market and provide more choice to customers.
The fintech company, best known for its banking app, already offers an eSIM which allows for overseas roaming on paid plans within the phone app.
But now they are set to release a full standalone mobile phone plan, which includes unlimited domestic calls and data plus 20GB roaming data within the EU and US.
Revolut is opening up a waiting list for when the product is launched later this year, with those who sign up set to receive an introductory rate for the tariff. There is currently no set date for when it will come online, with customers in Germany as well as the UK set to be the first ones able to sign up.
When contacted, Revolut did not disclose whether it would be running its own mobile network or using an already established network.
Consumer choice
The four main players in the UK are EE, O2, Three and Vodafone. The latter two are due to complete a merger later this year in a move that came under investigation due to potential lowered consumer choice, but is now set to go through.
Beyond those, there are a host of smaller operators known as mobile virtual network operators (MVNOs), which include the likes of giffgaff, Lebara and Tesco Mobile, which utilise the host networks of those bigger operators. Some are indeed owned by them, such as Vodafone’s spinoff Voxi.
It remains to be seen where Revolut will look to establish itself initially, though Revolut general manager Hadi Nasrallah said “mobile offerings are ripe for disruption”, pointing to a view of “consumers suffering with traditional network offerings due to a lack of transparency with hidden fees, painful customer experience and old, difficult to navigate” apps and services.
There is an intention for Revolut users to be able to use points gained within the app through spending to be able to pay towards the phone plan bill.
The Independent understands that the US was included as part of the roaming plan due to demand, with some of the more established networks charging bolt-on fees for roaming in other parts of the world.
Octopus incoming
Meanwhile, the group behind Octopus Energy was also this week reported to be exploring plans to launch a mobile phone service.
The FT reported Y Corporation has an existing arrangement with Three to use their network as an MVNO, with talks underway.
Y Corporation is owned by Fern Trading, a private company with shareholders who are investors in an investment product managed by Octopus Investments – an arm of the overall Octopus Group, a sprawling organisation which has more than £12bn of assets in total.
The Independent understands that Octopus does not currently intend to make the wider firm a player in the mobile space, beyond Y Corporation’s ambitions.
There is overlap across the two companies, with Sarah Grant sitting on both the Fern Board and being an investment director at Octopus Investments, while the latter are effectively appointed by Fern to run administrative work.
Octopus declined to comment on any aspect of the deal.
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