Firms like Monzo, Revolut, and Klarna are launching mobile services as MVNOs, capitalizing on cheap wholesale deals, e-SIMs, and cost-conscious consumers. These can be profitable plays, but risks, including customer service failures, could harm a brand's broader reputation.
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Everyone suddenly wants to be a telecoms group
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Enders estimates that MVNOs earn about £10 per user per month, and pay £3 in wholesale charges. That leaves a decent potential profit if they can keep customer acquisition and servicing costs down. For many companies, that is a big if. But fintechs already have customer service infrastructure and millions of loyal users. For a big company like Revolut or Klarna, the profit boost is unlikely to be game-changing. Using Enders’ estimates, if Revolut coaxed 15 per cent of its 11mn UK customers into joining a phone plan, with marginal acquisition and servicing costs, it would get nearly £140mn a year in extra revenue. That is only about 5 per cent of its 2024 total, or just under 20 per cent of its earnings.
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