Monzo — the popular app-based bank known for its trademark coral-coloured debit cards — is launching a competitor to mobile networks EE, O2, Three, Sky Mobile, and Vodafone, to name just a few. Unlike its closest rivals, phone plans from Monzo are designed to get cheaper every year. Yes, really.
The bank, which boasts more than 15 million customers worldwide, said its SIM-only plan challenges the traditional model by rewarding long-term loyalty. This is in contrast with traditional networks, which typically increase bills annually, meaning those who have stayed with the network the longest will pay the most.
Monzo Mobile will cut 5% off monthly bills each year, resulting in a total discount of up to 30% after six years.
At launch, Monzo will offer three different SIM-only plans, starting from £8 per month for 10GB of 5G data, £12 for 30GB, and lastly, £20 for an unlimited data allowance.
Monzo Mobile's eSIM plans will start from £8 per month, rising to a maximum of £20
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All of these plans are bundled with unlimited text messages and calls to UK landlines and mobile numbers. Monzo Mobile doesn't limit 5G download speeds on its most affordable plans, unlike some of its competitors.
Coming this summer, Monzo Mobile will only be available to those with a current account with the brand
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The £12 per month SIM-only bundle from Monzo Mobile comes with 10GB of 5G data to use when visiting mainland Europe, plus 11 other countries worldwide. That roaming allowance resets each month. Plump for the pricier £20 per month bundle, and that increases to 25GB of global roaming in 52 countries.
Monzo Mobile supports features like Wi-Fi calling, which improves call quality and lets you ring someone even when you don't have any cellular signal — as long as you're connected to Wi-Fi. You can also hotspot to a tablet, games consoles, friend or family member, or laptop to share your 5G data allowance.
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You can cancel anytime or switch between different SIM-only plans from the existing Monzo app, which is used to manage your current account, savings, and other features from the digital bank
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You can switch plans or cancel anytime, with no minimum contract term. You'll manage all the details of your mobile plan within the existing Monzo app.
What's the catch? Monzo Mobile isn't available... yet. Those who already bank with Monzo can join a waiting list ahead of the launch of the mobile network this summer. It will primarily rely on eSIM technology to work.
In the UK, only four providers operate their own network infrastructure – EE, Virgin Media O2, Vodafone and Three. But numerous smaller providers, known as virtual networks, piggyback off the signals from these vast networks of masts across the country – with Monzo using the Virgin Media O2 network for its service.
Sky Mobile, giffgaff, and Tesco Mobile also rely on Virgin Media O2 infrastructure.
Monzo’s entry to the market is set to intensify competition among phone providers, which are already being challenged by newer players such as Revolut and Klarna. It comes days after BT announced plans to resurrect BT Mobile with new SIM-only plans for broadband subscribers.
Jez Samuel, mobiles expert for price comparison website Uswitch, said Monzo “isn’t breaking new ground” with the loyalty discount but that “broader adoption is a positive sign”.
Mr Samuel said: “We’re seeing more players enter mobile than ever before, which can only mean more choice for consumers. Flexible, no-contract plans are appealing, but that flexibility cuts both ways as Monzo can change the price of its plans at any time.”
Additional Reporting By Anna Wise, Press Association Business Reporter