What Revolut’s telco move signals, and why traditional telcos need to rethink their strategy. 

By Prithweesh De (Engagement Manager) 

When companies expand into new sectors, the smartest moves aren’t always the boldest; they’re the ones rooted in real relevance. That means understanding who your customers are, what they actually need, and how you can deliver more value in their everyday lives. 

That’s exactly what we’re seeing with Revolut’s recent move into the telecom space. 

On the surface, it might look like an unexpected pivot. But in reality, it’s a strategic evolution from digital bank to lifestyle platform. With mobile phones already the primary touchpoint for their users, launching a mobile network isn’t simply another market expansion, it’s about deepening relationships, increasing frequency of engagement, and reinforcing their role in users’ daily digital lives. 

Their new offering — flexible, app-managed mobile plans with generous roaming — reflects the same principles that underpin their fintech success: ease, control, and user-first design. 

It’s not a one-off  

Revolut is the headline example, but it’s not a one-off. A broader trend is emerging where fintechs, and other trusted digital-first brands, are stepping into adjacent, high-frequency services like mobile. N26 in Europe, Nubank in Brazil, and even Octopus in the UK are all exploring or launching mobile offerings using MVNO technology. These brands are using telecoms to build richer ecosystems and grow customer lifetime value, in turn driving more revenue.  

We’ve seen this before with UK supermarkets launching budget MVNOs in the 2000s. But this is different. Then, it was about extending a retail brand. Now, it’s about owning more of the customer’s digital world. 

Should traditional telcos be worried? 

For traditional telecoms providers, this shift is a clear warning sign. The competitive landscape is no longer defined by rival telcos alone, it's being reshaped by brands that offer better user experiences, clearer value propositions, and deeper customer relationships. 

And expectations are rising rapidly. Today’s customers want intuitive digital experiences, transparent pricing, and the ability to manage their services seamlessly, on their terms. At the same time, brand loyalty is eroding. Younger, mobile-first users are increasingly loyal to platforms rather than providers, gravitating towards those that integrate effortlessly into their digital lives. 

Finally, and perhaps crucially, new challengers are entering the space — and they’re not playing by the ‘old rules’. If telcos don't adapt, they risk being reduced to commoditised connectivity providers, while the real value — and customer loyalty — flows to others. 

What can telcos do to compete? 

There is a path forward. But it requires a shift from thinking like a utility to thinking like a platform. That means: 

• Redefine your proposition. Go beyond connectivity. Offer lifestyle value - such as travel, security, finance - through mobile bundles that integrate with everyday life. 

• Meet fintech standards for UX. Build slick apps that give users real-time control, insight into usage, and easy plan management — without hidden fees. 

• Offer real flexibility. Ditch rigid contracts. Embrace on-demand, modular plans that reflect how people live and work today. 

• Use insight to build smart bundles. Understand your customers deeply. Create personalised offers for digital nomads, gamers, streamers — whoever your customer is. 

There are signs of progress, but it’s not parity yet 

Some telcos are moving in this direction. In the UK, EE and Virgin Media O2 are investing in converged bundles that combine mobile, broadband, and TV. Others, like VOXI, are experimenting with youth-oriented, digital-first plans. These are steps in the right direction, but most still lag behind the seamless, app-led experience customers have come to expect from fintechs. 

Insights matter more than ever 

Moves like this highlight the importance of market research and competitive intelligence. For any company looking to expand, deep insight into customer needs, digital behaviour, and pain points helps identify natural adjacencies, spaces where they can add real value, not just more features. 

For incumbents, strategic research is equally crucial. Understanding where competitors are heading, how consumer expectations are shifting, and where the white space lies can be the difference between disruption and resilience. 

At KAE, we help businesses understand their customers, market and competitors — so they can act with confidence. Whether you're defending your core or expanding into new spaces, insight is the foundation for smarter, bolder moves.