Monzo to enter phone market with plan on Virgin O2 network

The company has revealed plans to launch a phone plan built on the Virgin O2 network.

Monzo is offering a scheme where customers can save more money the longer they stay with the service.

Customers can get 5% off their monthly bill each year, potentially leading to a 30% discount over time.

Monzo to enter phone market with plan on Virgin O2 network

The bank, which has more than 15 million customers, is now allowing individuals to join a waiting list for the mobile service, which is set to roll out this summer.

Monzo’s entry into the mobile market is expected to increase competition among phone providers.

These providers are already facing challenges from new entrants like Revolut and Klarna.

The new Monzo plan features three different packages with varying data allowances.

These packages, which use a digital SIM card, are priced at £8, £12, and £20 a month.

Since 2025, new regulations have been put in place to prevent phone and broadband providers from unexpectedly increasing prices mid-contract.

However, some companies have faced criticism for raising prices for loyal customers in line with inflation.

Chancellor Rachel Reeves even wrote to company bosses last year, demanding better consumer protection.

Monzo has designed its plans to avoid these mid-contract price hikes by not tying customers into a yearly contract and not charging an exit fee.

However, this does not mean that Monzo cannot raise the prices of its plans at any time.

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In the UK, only four providers operate their own network infrastructure: EE, Virgin Media O2, Vodafone, and Three.

Monzo uses the Virgin Media O2 network for its service.

Earlier this year, Revolut, another financial firm, introduced a phone plan on the Vodafone network, with unlimited 5G, calls, and texts in the UK, priced at £12.50 a month.

What do you think about Monzo entering the mobile phone market? Let us know in the comments.