Unlike early “non-standalone” 5G, which simply added faster radio access on top of existing 4G networks, 5G SA runs on its own cloud-native, software-driven core. This architectural shift makes mobile connectivity more flexible, faster to adapt, and capable of supporting services that depend on ultra-low latency.

For MVNOs this evolution represents both a technical and strategic turning point. It changes how connectivity can be bought, branded, and embedded within digital products.

A standalone core dramatically reduces latency, enables fine-grained control over network behaviour, and allows computing resources to move closer to end users. Together, these capabilities make it possible to guarantee performance for specific use cases, a critical foundation for immersive applications, automation, and real-time systems.

For MVNOs, this marks a shift from selling connectivity as a commodity to delivering experiences and solutions. The programmability of 5G SA opens possibilities that simply were not achievable within a 4G-centric architecture.

UK mobile network operators are already deploying 5G SA, with nationwide coverage planned over the coming years. As these rollouts continue, the wholesale environment that MVNOs depend on will inevitably evolve, creating both new opportunities and new dependencies.

Seizing the 5G opportunity

The greatest opportunity lies in specialisation. MVNOs that focus on specific verticals, such as connected healthcare, transport and logistics, esports, or media production, can use 5G SA capabilities to build premium, tailored services. Low-latency performance, dedicated network slicing, and edge computing integration allow connectivity to become an enabling platform rather than a cost centre.

The rise of Network-as-a-Service (NaaS) models is particularly significant. As network operators begin exposing core functions through APIs, MVNOs may gain the ability to assemble highly customised virtual networks with far greater control than before. Early movers will be in a position to influence how these wholesale offerings are structured, priced, and delivered.

Risks and realities

Access to 5G SA is not guaranteed. Many current MVNO agreements in the UK still provide only enhanced radio access, without full access to the standalone core. As a result, some “5G” offerings do not include the low-latency or slicing capabilities that define true 5G SA. MVNOs will need to renegotiate contracts or partner with hosts that offer full SA functionality if they want to remain competitive.

Commercial complexity will also increase. As network capabilities become programmable, wholesale pricing models are likely to evolve beyond simple volume-based agreements. New metrics, such as latency targets, throughput tiers, and usage thresholds, will become part of commercial negotiations. MVNOs will need stronger technical and procurement expertise to manage this shift effectively.

Device compatibility presents another challenge. Not all handsets, modems, or IoT gateways currently support standalone features, and firmware support for certain frequency bands is still maturing. MVNOs must ensure that the devices they sell or certify can genuinely deliver the experiences they promote.

Security and compliance will grow in importance as virtual operators rely more heavily on distributed cores, edge data centres, and third-party APIs. Questions around data location, sovereignty, and protection will become more complex. Clear governance frameworks and robust audit processes will be essential to sustaining regulatory confidence and enterprise trust.

A measured strategy, focusing on value-added services that can be launched today, while preparing systems and teams for deeper SA integration, is likely to deliver the most sustainable results.

Steering through the shift

To navigate this transition successfully, MVNOs should begin technical and commercial discussions with host networks as early as possible. Understanding when and how each operator will make SA-level wholesale products available is critical for aligning product roadmaps and marketing strategies.

Investment in technical literacy is equally vital. Teams with a strong grasp of virtualised network functions, API orchestration, and edge computing will be best positioned to exploit SA-era opportunities. At the same time, reviewing device portfolios and eSIM provisioning processes can help avoid customer-experience issues as SA access becomes mainstream.

Security, transparent performance monitoring, and partnerships with cloud or edge providers will become key differentiators. MVNOs that can prove service quality and protect customer data will find it easier to command premium pricing, particularly in enterprise and vertical-specific markets.

5G Standalone is more than a network upgrade. It is a reset of how connectivity is designed, packaged, and sold. For UK MVNOs, it offers the chance to evolve from low-cost resellers into orchestrators of digital ecosystems, combining connectivity with intelligent services and applications. Realising that opportunity will require technical readiness, new commercial thinking, and close cooperation with host networks.

The coming years will determine which MVNOs merely survive the 5G transition and which reinvent themselves to lead it.

He remains group chairman and majority owner,

Subaskaran’s decision to step down from his directorship appears to be part of this restructuring process, aimed at restoring governance credibility and satisfying external stakeholders, including regulators and tax authorities.

His ongoing involvement is expected to be more strategic than operational as the company attempts to stabilise its finances and rebuild trust with partners and regulators under the control of his long-time business partner Premananthan Sivesasamy who  already oversees strategic, commercial, and financial matters across the 23 countries in which Lyca Mobile operates.

Subaraskaran’ resignation, formally recorded at Companies House on 13 June, comes after a turbulent year for the UK-based MVNO, which operates in more than 20 countries and has long marketed itself as a low-cost international mobile provider.  He remains chairman.

Lycamobile’s problems intensified in June 2024 when its auditor, PKF Littlejohn, refused to sign off the company’s 2022 accounts. The auditor cited a lack of “sufficient appropriate audit evidence” related to related-party loans and the recoverability of significant intercompany balances.

This refusal followed a pattern of missed deadlines, late filings, and growing concerns over the company’s corporation tax liabilities, large VAT arrears, and opaque internal loan arrangements.

Tax and VAT Battles

The group also became embroiled in a series of disputes with HMRC, including a £51 million VAT ruling and an estimated total liability potentially approaching £100 million. These issues prompted winding-up petitions filed by HMRC in August 2024.

Meanwhile, in France, Lycamobile’s local operation was earlier found guilty of VAT fraud and money laundering, resulting in a €10 million fine and criminal convictions of senior executives, including the former French CEO. In January Lyca announced it was slashing London head count to 48 as it reorganises to concentrate on Africa markets

Mobile News has requested a statemet from the company.

]]> https://mobilenewscwp.co.uk/news/article/lycam-founder-steps-director-amid-financial-turmoil/feed/ 0 https://mobilenewscwp.co.uk/news/article/lyca-mobile-sim-local-team-broaden-international-data-esim-products/ https://mobilenewscwp.co.uk/news/article/lyca-mobile-sim-local-team-broaden-international-data-esim-products/#respond Tue, 12 Nov 2024 11:12:47 +0000 https://mncwp.tailrd.cloud/lyca-mobile-sim-local-team-broaden-international-data-esim-products/ MVNO Lyca Mobile and Sim Local have teamed up to now offer Lyca’s data eSIM plans across the UK, France, Ireland, Sweden, the Netherlands, Portugal, and the USA. Sim Local’s platform offers eSIMs to international global travellers which connect to data packages from regional providers The partnership with Sim Local is Lyca’s first e-commerce retail

MVNO Lyca Mobile and Sim Local have teamed up to now offer Lyca’s data eSIM plans across the UK, France, Ireland, Sweden, the Netherlands, Portugal, and the USA.

Sim Local’s platform offers eSIMs to international global travellers which connect to data packages from regional providers

The partnership with Sim Local is Lyca’s first e-commerce retail collaboration outside of its own direct-to-consumer business

Sim Local was established in 2011 by Irish entrepreneur Killian Whelan. Headquartered in Dublin and London, the company operates over 150 points of sale across more than 100 airports worldwide, including major hubs like London Heathrow, Madrid, Brussels, Vienna, and Athens.

Initially focusing on physical SIM card sales through retail stores, kiosks, and vending machines, Sim Local has expanded its offerings to include eSIM technology.

Sim Local partners with local network carriers globally to provide competitive plans featuring data, texts, and calls at affordable rates. Their eSIM plans are available for over 200 destinations, offering flexibility and convenience for travellers.

According to Lexology, the travel eSIM usage is projected to exceed 215 million by 2028. The alliance between Sim Local and Lyca Mobile positions both brands as leaders in the growing eSIM market, responding to evolving consumer needs.

Laura Bullock, Head of Commercial at Sim Local, commented, “Our continued growth is driven by offering customers a broad range of international eSIM options at competitive prices. Partnering with Lyca Mobile enables us to add even more value with unlimited data packs at great rates.”

Frank Wiemann, CMO of Lyca Mobile, added, “Partnering with Sim Local allows us to expand into the growing eSIM market, giving customers more flexible, convenient connectivity options. We’re excited to work with Sim Local, a leader in travel connectivity, as we continue to innovate for international travellers.”

]]>

The company says a winding up order from  HMRC was issued in error and is not connected with the recent ruling of a tribunal that it must pay £51 million VAT outstanding since 2012. Lyca lost ts appeal that VAT should not be applied on money received from selling calling plans until he customer had used the included texts, calls, and data

Lyca ttold Mobile News:

“We confirm that the winding-up petition issued by HMRC against Lycamobile UK Limited on Monday 12th August related to amounts that were already paid by Lycamobile UK Limited or under dispute and it appears that the petition was issued in error. 

“HMRC has acknowledged that these amounts, less the disputed sums, were in fact already paid. The matter is not related to the recent HMRC tribunal ruling on VAT which will be subject to appeal. HMRC have indicated that the winding up petition against Lycamobile UK Limited will be withdrawn. We will continue to work closely with HMRC to swiftly conclude the matter”

A 55-page judgment by the First Tier Tribunal Tax Chamber disagreed with Lyca’s argument that VAT only became payable when the bundle data was used. Lyca had claimed that VAT could only be charged when the bundled services were actually used, rather than at the point of sale.

Face-value vouchers

Lyca argued that the Plan Bundles were face-value vouchers, categorizing them as retailer vouchers rather than single-purpose vouchers. The company maintained that the services within each Plan Bundle were supplied only as and when they were used. However, HMRC considered that those services were supplied when the relevant Plan Bundle was sold.

The VAT amounts being appealed covered the periods 2012 to 2015 (£6,319,980), 2015 to 2017 (£19,116,953), and 2019 (£25,707,095).

Lyca’s lawyers contended that activating a Plan Bundle was not chargeable to VAT because, at that time, it was not possible to identify the nature and extent of the services to be supplied under the Plan Bundle with sufficient specificity. They argued that, from the perspective of the consumer, there was functionally no difference between a Plan Bundle and the top-up credit which customers bought.

However, Tribunal Judge Tony Beare stated:

“The simple fact is that the entitlements under the Plan Bundles were not monetary amounts that could be used to acquire future services. Instead, they reflected the fact that services had already been supplied. For that reason, the entitlements did not represent the right to receive future services, as required by condition 2, but instead represented the product of services which had already been supplied.”

Read the full judgment HERE

Wiemann will work on branding development across Lyca Mobile’s global footprint.

He has around two decades of experience in the telecommunications industry and has held various senior leadership roles at E.ON, o.tel.o communications, and Vodafone in Germany, Spain, and the UK, managing teams.

Wiemann said: “I’m thrilled to join Lyca at this pivotal time in its growth. I see a tremendous opportunity to leverage Lyca Mobile’s global footprint and innovative spirit for our customers worldwide.”

Allirajah Subaskaran, Group Chairman and Founder of Lyca Mobile Group of Companies, commented: “Frank’s track record in driving organic growth and transforming marketing operations aligns perfectly with our vision. Frank’s leadership will be key in unlocking new opportunities and strengthening our global brand presence.”

—

MVNO Lyca Mobile has hired ex-Vodafone Group executive Nikos Paraskevopoulos (main pic left) as its new group chief financial officer and ex-BT and Plusnet executive Ketan Hindocha (right) as group director of customer care.

These appointments are part of Lyca Mobile’s recent efforts by CEO Richard Schäfer to strengthen its executive team, which also saw Lawrence Corbett named as Group Chief Operating Officer and James McQuillan as the UK and Ireland Country Manager in January.,

Schäfer became Group CEO last June and  is steering the company towards growth by focusing on providing high-value, low-cost services to its customers.

Paraskevopoulos will manage the financial operations of the company, including strategic planning and commercial finance. His experience involves leading projects and mergers and acquisitions in Europe.

Hindocha, as Group Director of Customer Care, is will lead the company’s customer care strategy to prioritise customer needs in its operations.

Paraskevopoulos commeted: “The current economic climate presents both challenges and opportunities for businesses. Having a robust financial strategy is key to navigating these waters successfully. I’m looking forward to working closely with Richard and the team to ensure that our financial decisions align with the company’s overall goals and contribute to its long-term sustainability.”

Ketan Hindocha said “Brand loyalty is not easy to retain, particularly amidst rising prices across the board. A customer-centric strategy is a necessity. Customers are at the heart of our business. I look forward to collaborating with the team to enhance our customer care initiatives and ensure that every interaction reflects Lyca Mobile’s values.”

Their arrival follows the appointment of Richard Schafer as Group CEO last June.

“We are poised to challenge established operators. Lawrence and James, with their impressive backgrounds, are invaluable additions to our senior leadership team,” Schafer remarked.

Corbett has held various roles within the Virgin Group, including Investment Director. He has worked in in global markets, including Europe, the Middle East, South Africa, APAC, and parts of Latin America. His most recent position was as Group COO for Circles, a Singapore-based MVNO. At Lyca he will Corbett wll oversee Group Operations and P&L management for both UK and international operations.

“There is a huge growth potential at Lyca”

“There is a huge growth potential at Lyca, particularly as the business becomes more digitally oriented and capitalises on the industry move towards digital services and experiences. I look forward to helping the team deliver on the company’s potential” said Corbett.

McQuillan has more than 20 years telecoms and e-commerce experience including roles at at AOL, TalkTalk, Tesco Mobile, and the Rohlik Group in the Czech Republic. He has previously led MVNOs in the Czech Republic and Slovakia and played a pivotal role in establishing Kifli, Hungary’s leading online grocer.

“I’ll be doubling-down on Lyca’s offer to customers, focussing on how the business can expand its retail footprint, drive improvements in customer experience, and further develop Lyca’s sustainability credentials by championing e-sims”, he said.

Lyca’s activities with West Ham Mobile Cup will include the West Ham United Foundation girls’ tournament. Also, West Ham United fans will be able to purchase Lyca Mobile ‘Fan Plans’ which will give them the opportunity to win tickets, merchandise, and ‘meet the player’ experiences.

Lyca Mobile’s brand will continue to be displayed on perimeter LED signs. Richard Schäfer, Lyca Group CEO, said: “It has been gratifying to support West Ham United’s charitable initiatives in bringing opportunities to local communities and young people in East London and Essex over the past decade. I look forward to the opportunities this partnership can bring to our customers over the next few years”.

The deal will see Lyca’s entire customer base move across to EE following a new agreement with BT Wholesale. which sells MVNO’s airtime on the EE network.

Lyca Mobile’s UK customers in the UK customer experience will get future access to services such as WiFi calling.  Lyca has been with O2 since 2009 and renewed its agreement in 2015.

Richard Schäfer, Lyca Group newly-appointed CEO, said:

“The partnership with BT Wholesale is a critical milestone in Lyca Mobile’s strategy to target a broader section of UK mobile users with cost-effective and high-quality services. Network performance has become a vital concern for mobile users I also want to thank O2 for our many years of partnership. Without their support we could not have grown into the thriving business we are today, and we will always be sincerely grateful for their leadership, innovation and collaboration” 

Alex Tempest, MD, BT Wholesale, said: “This major new MVNO deal with Lyca Mobile reflects the ongoing importance of wholesale to BT and is testament to the high quality of service we provide to customers and the strength of our EE network. Lyca Mobile customers will receive access to EE’s 4G and 5G network, which currently supports data speeds that are around four times as fast as what they received previously. We look forward to working closely with Lyca Mobile as part of this new long-term partnership and aim to provide the best mobile experience for customers.”

Earlier this year, Lyca Mobile announced a freeze on its prices until the end of 2023 and guaranteed EU roaming for customers across its plans. This will continue unchanged under its new partnership with BT Wholesale.