BT Group is reportedly weighing the launch of a new premium product as part of its bid to compete with a wave of new entrants – including Fintech startups Revut and Monzo, which are set to launch mobile services.
According to the Financial Times, a major UK telecoms company is exploring whether to build an In-Budget Brand or existing 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-only services through its Premium EE Brand, and has focused more on Presnet than Broadband since it was restructured last year.
The push comes as virtual network operators – companies leased by established networks such as ee, Vodafone, and third party – are set to account for 16.5% of the UK mobile market by 2024, according to Comcom. Analysts expect that share to rise as competition intensifies between the worst 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 customers, are preparing to launch mobile plans as part of a broader effort to transform revenue streams and strengthen customer loyalty through integrated financial and mobile services.
The Pay-Pay-Pay-Pay provider is the latest to move into mobile, alongside Fern trading under Octopus Group Investment, which builds telecoms assets across the UK.
“Fintechs are blurring the lines between banking, payments and communication,” said James Barford, head of telecoms research at enders analysis. “They already dominate the digital interface with consumers – moving to mobile services is a natural extension of that philosophy.”
BT’s exploration of the low-cost segment is being led by Chief Expeethel Kirkby, who took the helm earlier this year. Kirkby is understood to be looking for ways to strengthen the customer base in the mainstream market and broaden BT’s appeal beyond its premium EE brand.
Industry sources told FT The Plan is backed by Sunil Bharti Mittal, an Indian business founder and Bharti Enterprises, which became the majority shareholder of BHARTI in 2024 after receiving a bond held by Patrick Drahi.
A possible departure related to Mittal’s focus on AffAppleable and market measurements – principles that have led to his success with Airtel, one of India’s largest networks.
The telecoms group is also reviewing the positioning of its BT consumer brand, which retains strong recognition among older customers. Management is said to be looking at renewing BT-Broadband broadband and mobile bundles aimed at getting more traditional users familiar with the company’s new products, eE and PlusNet.
BT research found that brand familiarity remains a key factor in attracting and retaining existing customers, especially as brands emphasize convenience and value.
“EE has become the ultimate product for premium users,” said Sara Hall, Telecoms Consultant at Strategy Pegasus. “But the Mass market is where the volume growth lies – and where the Fintech rivals attack first.”
In response to the reports, BT released a brief statement: “We are also reviewing our offerings across our products to ensure our customers have access to the best products on the best network. At the moment, we have no plans to change our mobile offering.”
However, analysts say BT’s silence could reflect early stage decisions rather than dismissing the idea. The group is facing increasing pressure to protect its consumer market share, as entrants driven by Giffgaff, Smarty, and vooxi continue to attract younger users with preferences, app-based contracts and transparent pricing.
The UK mobile market is undergoing one of its most significant challenges in years, driven by digital disruption, consolidation, and the rising costs of network investment.
BT has already faced competitive pressure following the Vodafone-three merger, while facing the challenge of investing its billions of dollars in 5 kilos of infrastructure.
At the same time, Fintech companies see telecoms as a profitable gateway to everyday digital services – allowing them to integrate banking, payments, and communication under one application and access rich data for growth.
“If Revut and Monzo succeed in turning mobile services into a way of life, it can redefine customer loyalty in both finance and telecoms,” said Dr. Anna Kogiwiwe, senior lecturer in economics at King’s College London. “BT and the legacy networks can afford to ignore that.”
While BT insists that no official decision has been made, the discussions emphasize that the rapid convergence between telecoms and fintech is forcing the desire to renew or put at risk low-end consumers.
If BT continues, the most expensive mobile brand could not only protect its domestic market share but also act as a strategic counterweight to digital challenges that want to end the dominance of established networks in Britain.
Either way, the battle for the future of UK mobile is no longer about communication – it’s about who controls customer relationships in an increasingly digital world.
