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(Sharecast News) - BT is reportedly mulling the launch of new a low-cost mobile brand, as it looks to compete with new rivals in the market including the fintech companies Revolut and Monzo.
The UK telecoms provider is exploring options to enter the lower-priced end of the market, which could involve creating a new brand in-house or buying an existing virtual network operator, the Financial Times reported.
BT currently only offers mobile services through its premium EE brand but is now looking at how it can stay competitive as new rivals, including from the fintech sector, move into the market as virtual network operators, which piggyback on the existing networks of other providers.
Virtual network operators accounted for 16.5% of the UK mobile market last year. Revolut and Monzo both announced plans to launch a mobile service earlier this year, in a move that would help diversify their revenues while also putting pressure on incumbents such as VodafoneThree and EE.
The buy now, pay later provider Klarna is also moving into mobile services, as is Fern Trading, backed by Octopus Group, the multibillion-pound fund that owns the eponymous energy company.
BT is reportedly looking at expanding the use of its BT brand for broadband services in order to win over older customers who are less familiar with its new EE and Plusnet offerings.
Reporting by Frank Prenesti for Sharecast.com
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