Octopus

Again from the disruption of the two sectors of energy and banking services, octopus and revolution have turned its attention to the mobile phone market in the United Kingdom.

Both groups are looking to storm mobile operations, in a move that could pose a threat to the occupants of industry, which is dominated by four players – and they soon are three players.

Revolution announced its plans on Wednesday to launch a comprehensive mobile phone plan in the United Kingdom and Germany as part of “SuperPP”, as it could be a variety of interlocking products in addition to basic banking services. It already provides ESIM customers can use to roam abroad, which Revolution says is its most popular product.

This step continues by Fintech in a large photography process in the mobile communications market in the United Kingdom after the news last week that Octopus-the fund with billions of pounds owns the energy company called- Explore the launch For the new mobile phone player through Fern Trading.

“From our point of view, consumers suffer from traditional network shows due to a lack of transparency with hidden drawings, and the experience of painful and adult customers, it is difficult to move (design). We look forward to solving the three,” said Hadi Nasrallah, Director General of Communications at Revolution.

This will not be the first to enter the market: Nubank listed in the United States, which has a $ 60 billion market capitalization, launched Etisalat Service His name is a nucleus in Brazil last year. Others also think. London -based Monzo competitor has not excluded the introduction of a similar product in the future, according to a person familiar with Fintech plans.

Both Frivolut and Octopus supported from Fern are the virtual mobile network operators, or MVNOS, which serve customers, but do not build their basic infrastructure.

Instead, MVNOS has cut the deals to Piggyback on the networks of the four main players-which includes BT, Virgin Media 02 and Soon, Vodafone will be combined and three – Try to save costs. Other well -known MVNOS is well -known VOXI VM02 supported by VM02.

The group constitutes a two -level challenge for current operators, who fight virtual competitors for customers, while simultaneously trying to tempt competitors to sign wholesale deals to use their infrastructure.

“The worst thing that the main operators have ever did is to allow MVNOS to obtain a foothold,” said one of those familiar with the industry.

MVNOS is in no way new: the first thing in the world was Virgin Mobile in the United Kingdom in 1999. However, the threat posed by the virtual operators of the founding players has flourished in recent years, as research from Enders analysis showed that in 2024, MVNOS added 1.6 million customers to their networks.

In contrast, four main operators in the United Kingdom have lost 180,000 subscribers; In the first year of history, they saw a decrease.

James Robinson, chief analyst at Assembly Research.

Robinson believed that more than a quarter of all consumers could use virtual service providers by 2028 – an increase of 16.5 percent in 2024.

He added: “If (octopus and revolution) launched launch operations, then these large names can accelerate this growth.”

Karen Eagan, Enderez Communications President, said that the trend is partially condemning the cost of the living crisis, as consumers are likely to use a cheaper alternative to a mobile phone – which many MVNOS claim to be submitted.

Ege also indicated that in addition to competing with consumers, an additional battle was also growing among network operators wandering in signing deals to bring virtual operators to their networks.

“Mvnos gets increasingly good wholesale deals from network operators, who are really Struggle for other sources for the growth of revenues It has decent levels of backup. ”

Robinson of Assembly said that the competition between networks to host virtual operators is likely to increase after the completion of the merger in Vodafone-three in the coming weeks, as the new company would add the ability to host MVNOS.

He added: “You will now have three pilgrims in the wholesale market who are able to host the operators – when they collect, no wonder (new entrants) are thinking about mobile phone options.”

The VM02, which hosts MVNOS including TESCO, purchases an additional network capacity of the integrated Vodafone-Hree, according to a person familiar with the situation, which VM02 believes will be an additional attraction for competitors.

However, the influence of the new players has been suspicious of James Ratzer, an analyst in New Street, which highlighted the already crowded nature of the mobile market in the UK.

He said: “The new brands will increase the competitive density, but perhaps a limited degree, because it is already a crowded market with a number of other major success stories.”

The plays were also interrogated for the “SuperPP” strategy – such as those drawn by the revolution – by analysts, who felt that this step would not work in the western markets.

Robak Gos, a former research analyst in Credit Swiss, said that such applications worked in China due to the lack of job occupants.

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

EE still sees value in partnership with MVNOS but it believes that many customers still prefer choosing a solid service with a reliable brand, according to one person who is aware of the company’s thinking.

Kester Mann, an analyst at CCS Insight, said that the entrance in particular can prove a challenge for traditional operators because of the recognition of its well -known brand and comfortable offers.

The octopus, BT, Vodafone, three and vm02 were rejected.

Man said: “(Revolution) can bring some of the same interruptions in the mobile phone as it has financial services,” said Man.