Monzo mobile phone plan: Contract gets cheaper the longer customer stays - how to sign up
British online bank, Monzo, is entering the mobile phone market and it plans to reward rather than penalise, long-term loyalty - here’s how to get added to the waiting list.
Online bank Monzo is launching a mobile phone plan that gets cheaper the longer a customer stays. The firm is offering banking customers the chance to join a waiting list for the mobile service, built on the Virgin O2 network, and will be rolled out in the summer.
Monzo’s entry to the market is set to increase competition among phone providers, already facing challenges from the likes of Revolut and Klarna. Monzo, which has more than 15 million customers, said its plan challenges the traditional mobile model by rewarding, rather than penalising, long-term loyalty.
Customers can get 5% off their monthly bill each year, resulting in a discount of up to 30% over time. It is offering three plans using a digital sim and with varying data allowances, costing £8, £12, and £20 a month.
Since 2025, new rules have cracked down on phone and broadband providers increasing prices in the middle of a contract without warning. But some firms have continued to come under fire for effectively penalising loyal customers with inflation-linked mid-contract price rises, with Chancellor Rachel Reeves writing to bosses last year to demand more protection for consumers.
Like other new providers, Monzo aims to circumnavigate the issue of mid-contract price rises by designing plans that do not tie people in for a year and do not charge an exit fee – but that does not mean it cannot raise the prices of its plans at any time.
In the UK, only four providers operate their own network infrastructure – EE, Virgin Media O2, and Vodafone and Three. But numerous smaller providers, known as virtual networks, piggyback off their signals – with Monzo using the Virgin Media O2 network for its service.
Financial firm Revolut began rolling out a phone plan earlier this year which runs on the Vodafone network, and offers unlimited 5G, calls and texts in the UK for £12.50 a month.