Strategic Move Sees Lyca Group Shift Mobile Focus to New Markets

The Group behind mobile operator Lyca Mobile, which in the UK is a virtual operator (mvno) on EE’s network, has this morning announced a “strategic reorganisation” that it says aims to “drive efficiency and foster global growth“. This will include, among other things, “plans” for global expansion into Spain and the USA during early 2025.

Over the past couple of years’, the operator has certainly faced plenty of challenges, particularly in the UK. For example, there was the 2023 cyberattack (here), as well as the conviction of Lyca’s French entities for money laundering and VAT fraud (the operator is appealing against that), and a Tax Tribunal recently ruled in HMRC’s favour over a £51m (aggregate) dispute related to the VAT treatment of customer “bundles” (here). Not to mention issues with the auditing of their accounts (here) and the recent announcement of significant UK job losses (here).

The latest announcement will see the Lyca Group “streamlining certain business units and operations, enhancing digital capabilities, and positioning the company for sustainable growth in a competitive and challenging global market“. As part of this they will continue to invest in their mobile operator operations in Africa (e.g. Uganda) and intend to expand into new countries as soon as Q1 2025, including the launch of new digital brands in Spain and the USA.

“The proposed transformation forms part of Lyca’s long-term strategy to expand its global business services and support operations into its established service centres as well as new service hubs to be located in territories which have strategic importance while transforming country-specific operations into leaner, sales-focused organisations. The move is expected to deliver significant operational efficiencies, boost speed to market, improve customer experience,” said the announcement.

Premananthan Sivasamy, Deputy Chairman of Lyca Group, said:

“Lyca’s strategic reorganisation is a bold step forward, ensuring we remain a leader in delivering affordable, high-quality telecom solutions to our customers globally. This paradigm change not only enhances our efficiency but also strengthens our ability to adapt to a rapidly changing industry, ultimately benefiting our customers, partners, and employees globally.”

Despite this, Lyca said they “remain committed” to supporting their employees during this transformation. “A smaller, more specialised team will remain in London to manage certain limited advisory, compliance and financial functions that require a UK presence,” added the operator, which seems to be spoken in the context of recent job cuts.

Meanwhile, other roles will be handled either from their existing service centres or at hubs to be established in order to leverage cost efficiencies and expertise (i.e. outsourcing), “enabling the business to reinvest resources in innovation and strengthen our business“.

“Lyca is engaging in a thorough consultation process with employees and will work closely with partners to ensure a smooth transition with minimal disruption to the high standards of service and collaboration they have come to expect from Lyca,” added the announcement.

Lyca’s “Vision for the Future” (PR Extract)

In response to intensifying competition and rising costs across the telecom sector, Lyca has undertaken a comprehensive review of its operations and business areas to identify opportunities for growth and efficiency. By leveraging its well-established service centres Lyca aims to:

➤ Enhance its digital capabilities, enabling faster delivery of innovative products and services.

➤ Streamline operations by consolidating functions, reducing overlaps, and automating processes.

➤ Achieve substantial cost savings, which will be reinvested in market expansion and customer-focused initiatives.

This strategic shift reflects Lyca’s unwavering commitment to continuous improvement and innovation. By aligning its operational model with future market demands, Lyca is reinforcing its position as a trusted partner and an industry leader dedicated to connecting people and communities around the globe.