Telecoms caught up with Zac Eller, GM of Global Partnerships at ExpressVPN, to analyse the impact of a potential launch by digital bank Monzo into the mobile service market as a MVNO.

While nothing is confirmed, the mere suggestion of such a crossover has forced a moment of introspection for the industry’s legacy giants. Could a bank, armed with a powerful brand and deep customer trust, fundamentally disrupt the established order?

Eller provided us with his views on what such a move would mean for the likes of BT and Vodafone, and why the threat of being reduced to a “dumb pipe” is more real than ever.

Transferring Monzo’s blueprint to the mobile service market

For years, the playbook for legacy telecoms providers has been predictable: bundle services, offer perks like streaming subscriptions, and lock customers into lengthy contracts. According to Eller, this model is fast becoming obsolete. The success of challenger brands like Monzo, Revolut, and even Octopus Energy in the utilities space, shows a different path built on transparency and community.

“The likes of Monzo and Revolut have shown that transparency and community engagement build loyalty faster than discounts,” Eller explains. He points to other disruptors who are rewriting the rules of customer engagement.

“Outside of finance, there are lessons to learn from Klarna, which is winning by simplifying experiences and rewarding advocacy. Octopus Energy is another one that is putting customers at the heart of its sustainability and pricing model.”

For an industry often criticised for confusing tariffs and lacklustre customer service, Eller believes the way forward requires a radical shift in mindset.

“For BT or Vodafone, the lesson is clear: move away from opaque contracts and perks-for-lock-in, and instead create transparent, interactive communities that make customers feel genuinely valued.”

This new model of loyalty is non-transactional. It’s about building a relationship so indispensable that leaving feels like a downgrade, not a saving. It means focusing on proactive service and digital safety features rather than simply dangling a freebie.

The data advantage for personalising mobile services

The core challenge for traditional telcos is that their customer relationship is often limited to a monthly bill and occasional service queries. In contrast, digital financial platforms are embedded in the daily fabric of their users’ lives. This gives platforms like Monzo access to a trove of data that could give them an advantage in the market by powering hyper-personalised mobile services.

Eller notes the distinct advantage this provides. “Revolut knows your travel patterns, Klarna your shopping habits, Monzo your spending rhythms, and Octopus your home energy use.”

This information is a goldmine for creating personalised offers that legacy providers would struggle to match. Imagine roaming bundles that activate automatically based on your travel data, or flexible mobile contracts that align with your personal income cycle.

Eller suggests this is the competitive frontier, pointing out that, “traditional telcos lack the breadth of lifestyle context, which makes it challenging to compete on personalisation without new partnerships and industry collaboration.”

If a brand like Monzo did enter the mobile service market, it would likely weaponise its banking DNA from day one. Features that are standard in fintech – such as instant digital onboarding and real-time spending controls applied to a mobile bill – would feel revolutionary in telecoms. These are fundamental improvements to the customer experience where incumbents have historically lagged.

Rise of the super-app ecosystem

This potential crossover speaks to a broader market trend: the move towards integrated digital mobile ecosystems, or ‘super-apps’. While the idea of a single app managing every aspect of your life might seem futuristic, Eller argues the consumer appetite is already here.

“Most people in inner cities can’t live without using Uber for travel, for example, and millions already use the likes of Revolut, Monzo, Klarna, and Octopus Energy on a daily basis,” he says.

However, he believes a single, all-encompassing super-app – like WeChat in China – is unlikely in the UK, primarily due to regulatory issues.

The Financial Conduct Authority (FCA) and Ofcom would understandably be cautious about the implications of such market dominance and data concentration. Instead, a more plausible future involves the growth of sector-driven ecosystems.

“What’s more likely than a single super-app is sector-driven ecosystems,” Eller predicts. “For example, Monzo bundling financial services with travel and mobile or Octopus linking energy, smart home, and broadband.”

In this scenario, telecom providers face a choice: do they risk becoming commoditised infrastructure, the ‘dumb pipes’ that simply facilitate the services customers actually care about? Or do they evolve?

To avoid this fate, they must find new ways to create active, daily relationships with their customers. Eller suggests they could adopt “Klarna-style flexible billing, Monzo-style in-app communities, or Octopus-style dashboards that make customers feel in control of their digital lives.”

The rumour of Monzo Mobile entering the market may just be a rumour for now, but it’s a wake-up call for the telecoms industry. The next major competitor to BT or Vodafone might not be another network operator, but the bank, energy provider, or shopping app already on your phone.

See also: Fixing slow eSIM adoption to improve global mobile connectivity

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