BT Group reportedly began assessing options to launch a lower-tier mobile brand than its current EE set-up to fend off potential competition from MVNOs launched by financial services providers.

Financial Times stated BT bosses are exploring options including the launch of a budget MNO or an acquisition of a virtual player to brace itself for an expected bump in competition from online banks Revolut and Monzo.

The newspaper reports the banks are readying MVNO plays and analysts expect a larger slice of the UK mobile market to be taken by virtual operations in future.

BT ditched a plan to make EE its sole consumer brand earlier this year, reportedly because of concerns about an adverse reaction by older customers.

FT noted a low-cost move by BT would alter its current premium-tier approach, though highlighted the operator offers budget broadband through its Plusnet brand.

The move might prove a tough sell for consumers given EE’s higher-end stance. In a blog published in August, MD of Sales and Service Operations Nick Lane argued lower-priced services often sacrifice quality and so could prove a false economy.

If the online banks mentioned by FT do make an MVNO move, they would join a busy market involving big-name UK retailers; long-established players including Lycamobile and Lebara; and operator sub-brands including Giffgaff.