Telecoms spoke with Zac Eller, General Manager of Global Partnerships at ExpressVPN, to assess the potential impact of digital bank Monzo launching a mobile service as an MVNO. While nothing is confirmed, the suggestion alone has prompted established telecom operators to reassess their strategies. Could a trusted bank brand disrupt the market and reshape customer expectations?
Eller shared his perspective on what a Monzo mobile offering might mean for incumbents such as BT and Vodafone, and why the risk of becoming a “dumb pipe” is now more tangible than ever.
Transferring Monzo’s blueprint to the mobile service market
For decades, traditional telecoms followed a familiar script: bundle services, attach perks such as streaming subscriptions, and lock customers into long contracts. Eller argues this approach is losing effectiveness. Challenger brands like Monzo, Revolut and Octopus Energy demonstrate an alternative built on transparency, community and straightforward value.
“Brands such as Monzo and Revolut have shown that transparency and community engagement build loyalty faster than discounts,” Eller says. He highlights other disruptors that are redefining customer experience and engagement.
“Klarna, for example, succeeds by simplifying the customer journey and rewarding advocacy. Octopus Energy prioritises customers through sustainable pricing and clear communication,” he adds.
In an industry often criticised for confusing tariffs and poor service, Eller believes a fundamental mindset shift is required.
“For BT or Vodafone the message is straightforward: move away from opaque contracts and perks-for-lock-in. Build transparent, interactive communities that make customers feel genuinely valued,” he advises.
This emerging loyalty model is non-transactional. It focuses on forging relationships so indispensable that leaving feels like a downgrade rather than a saving. The emphasis should be on proactive support and digital safety features rather than on one-off freebies.
The data advantage for personalising mobile services
Traditional telcos typically relate to customers through a monthly bill and occasional support interactions. By contrast, digital financial platforms are embedded in everyday life, giving them rich behavioural data. Platforms like Monzo could leverage this insight to offer hyper-personalised mobile services.
Eller outlines the edge this creates. “Revolut knows travel patterns; Klarna understands shopping behaviour; Monzo observes spending rhythms; Octopus tracks home energy usage.”
Such data enables offers that legacy providers would find difficult to match. Consider roaming bundles that activate automatically based on confirmed travel dates, or flexible mobile plans aligned with a customer’s income cycle—capabilities powered by real-world context.
Eller argues that “traditional telcos lack the broader lifestyle context, making it hard to compete on personalisation without new partnerships and industry collaboration.”
If Monzo entered the mobile market, it would likely apply its fintech strengths from day one. Instant digital onboarding, in-app spending controls tied to a mobile bill, and real-time notifications would feel transformative in telecoms—areas where incumbents have historically underperformed.
Rise of the super-app ecosystem
This potential crossover reflects a wider trend toward integrated digital ecosystems, often described as “super-apps.” While a single app that handles every aspect of life may sound futuristic, Eller believes consumer appetite for unified digital experiences already exists.
“In urban areas, people rely on services like ride-hailing and use apps such as Revolut, Monzo, Klarna and Octopus Energy daily,” he notes.
However, Eller doubts a single dominant super-app—akin to WeChat in China—will emerge in the UK, mainly because of regulatory constraints. Authorities such as the Financial Conduct Authority and Ofcom would be cautious about the risks of market dominance and concentrated data control.
Instead, he predicts the rise of sector-driven ecosystems. “More plausible than one all-encompassing app are vertical ecosystems: Monzo might bundle finance, travel and mobile; Octopus could integrate energy, smart-home services and broadband,” Eller says.
Under this scenario, telecom providers face a pivotal choice: accept commoditisation as infrastructure—the “dumb pipes” that merely enable services—or reinvent themselves to create daily, active relationships with customers.
To remain relevant, telcos could adopt innovations such as Klarna-style flexible billing, Monzo-inspired in-app communities, or Octopus-like dashboards that give users control and visibility over their digital lives. These approaches shift the focus from transactional relationships to continuous engagement.
While Monzo Mobile may still be speculation, the possibility is a clear signal to the telecoms sector. The next major challenger to BT or Vodafone might not be another network operator at all, but a bank, energy company or retail app already deeply embedded on customers’ phones.
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