Lycamobile sets sights on contract market

Lycamobile sets sights on contract market

Lycamobile is looking into launching b2b contract deals as part of a concerted drive for growth.

The international MVNO currently offers cut price, pay as you go (PAYG) deals on international and national calls to 10 million customers across 17 countries. Now it is looking at launching contract deals in the UK as a way of tapping into the UK’s business sector.

Speaking to Mobile Lycamobile CEO Chris Tooley (pictured) said: ‘We are reviewing whether to offer contracts at some point. It has not been one of our core specialisations but there is a market out there, particularly in the business sector.

‘The business caller is someone who probably travels and makes a lot of international calls and we have a lot of products to reduce the cost of those calls and the cost of roaming.’

However, Tooley said there was no imminent plan to launch contract deals, emphasising that the strategy is still ‘at review stage.’

Tooley said Lycamobile wants to build on its rapid growth, which has seen it launch in 17 countries across three continents in eight years. It recently launched a major promotion to build customer numbers that sees all of its 10 million customers offered free Lycamobile to Lycamobile calls.

Tooley said the promotion, which will run for around three months, is already gaining ground with a significant increase in international calls and daily customer acquisition rates rising by between 30% to 50%.

Tooley said the company is looking to capitalise on customers’ increasing shift from feature to smartphones. Around four million of the MVNO’s 10 million customers now use smartphones, driving ARPU levels up as users increase their data usage.

In the UK, Lycamobile is hoping to drive this growth with its recent launch of 4G services with network partner O2. Tooley said the phased 4G roll out, launched last month, gives Lycamobile an edge over its MVNO rivals.

‘We are the second MVNO in the UK – after Tesco Mobile – to offer 4G to our customers. This is something our immediate competitors don’t have. Customers are demanding 4G more and more and we can offer them a great 4G package in terms of data and connectivity service. We think this is a significant breakthrough for us in the UK.’

Tooley said the 4G deal was a testament to the strength of its relationship with O2. He added: ‘We are now in the fifth year of our relationship with O2 – as a full MVNO we have the option to negotiate with other operators and move to other operators. The fact that we haven’t moved and are not talking to other operators shows the strength of our relationship with O2.’

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