Revolut to Disrupt EU Telecoms Market with Monthly Mobile Phone Plans
Revolut, a British-based fintech, is set to announce the launch of monthly mobile phone plans in the UK and Germany this year, with more markets to follow. The move is expected to disrupt the established telecoms market in the EU, with Revolut hoping to offer customers a more transparent and flexible alternative to traditional network providers.
According to a statement sent to Euronews, customers will have access to unlimited calls, texts, and data at home, as well as a local phone number without fixed contract commitments. UK plans will provide a 20GB roaming allowance across the EU and the US, while German plans will include 40GB of EU roaming. Offers for EU customers travelling to the UK have not yet been disclosed.
The launch of Revolut’s mobile plans is a significant move in the EU telecoms market, which has seen a relatively large number of mobile network operators (MNOs) compared to other regions. Proponents of a fragmented market argue that diversity of providers is good for competition, forcing firms to provide a better service. However, critics argue that smaller firms make less profit, meaning less funding goes towards infrastructure upgrades.
Revolut will be acting as a mobile virtual network operator (MVNO), rather than an MNO, meaning it will be leasing network capacity from an established player. Hadi Nasrallah, general manager of Telco at Revolut, told Euronews that the firm cannot yet reveal its operating partners, but that “some of them span multiple markets”. When asked how the firm would ensure service quality when working with leased infrastructure, Revolut said this partially relies on trust between firms – although contractual commitments must also be met to avoid penalties.
The EU’s “roam like at home” rules, introduced in 2017, allow consumers in the EU to call, message, and use mobile data anywhere in the bloc at no extra cost – although there are fair usage limits. However, since the UK left the EU in 2021, this regulation no longer applies to Brits, which means that UK mobile providers can set their own roaming charges. According to Nasrallah, “consumers are suffering with traditional network offerings due to a lack of transparency with hidden fees, painful customer experience and old, difficult to navigate user experience”.
The move by Revolut follows its launch of an eSIM last year, a digital version of a physical SIM that allows customers to switch between networks. Using these cards when abroad can be cheaper than buying roaming bundles through your standard provider. Antoine Le Nel, Revolut’s chief growth and marketing officer, told Euronews that the mobile service would not dilute the company’s brand, and that “we do things above and beyond money”. He stressed that diversification is “nothing new” for Revolut, pointing to offerings such as mortgages and hotel booking.
In related news, Tomaso Duso, department head at DIW Berlin and chairman of the German monopolies commission, previously told Euronews that it’s “almost impossible to enter the EU market as an MNO, as access is tightly regulated and new spectrum licences are rarely awarded”. However, he noted that it’s not too difficult for non-traditional players to enter the market as MVNOs, as they can lease capacity from existing networks without having to invest in their own infrastructure. A recent report from the European Commission, to which Duso was a contributor, reads: “When looking at the relationship between investment and concentration, we do not find that higher concentration leads to higher levels of investment; further, …MVNOs seem to play a meaningful role in fostering investment in mobile telecommunications.”
Revolut said that customers who join a waitlist will be the first to access the mobile plans, with an introductory rate of £/€12.50 a month. The firm’s mobile plans will be integrated into the Revolut app, and users will be able to pay with points collected through the firm’s loyalty scheme. With its characteristic “no fuss” ethos, Revolut is hoping to shake up the EU telecoms market and provide customers with a more flexible and transparent alternative to traditional network providers.
The development was first reported by Euronews, a leading news provider. Euronews has been at the forefront of reporting on business and technology news, providing in-depth analysis and insights on the latest developments.
In conclusion, Revolut’s move into the EU telecoms market is set to disrupt the established order, providing customers with a more transparent and flexible alternative to traditional network providers. With its characteristic “no fuss” ethos and commitment to diversification, Revolut is hoping to shake up the market and provide customers with a better service.
Euronews has contacted Revolut for further information on the mobile plans, but a spokesperson for the firm said that they were unable to comment further at this time.
The company has a reputation for challenging traditional banking and financial services, and its move into the telecoms market is seen as a natural progression.
The plans are set to be launched in the UK and Germany this year, and customers who join a waitlist will be the first to access the mobile plans.
Revolut’s expansion into new markets and products has been well-received by investors and customers alike.
The fintech firm has been valued at over $30 billion, making it one of the most valuable startups in Europe.
Revolut’s move into the telecoms market is a significant development, and it will be interesting to see how the company performs in this new market.
Only time will tell if Revolut’s mobile plans will be a success, but the company has a strong track record of innovation and disruption.
Euronews will continue to provide updates on this story as more information becomes available.
For more information on Revolut’s mobile plans, visit the company’s website or check out Euronews for the latest news and updates.
This article was originally published by Euronews.
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