Lycamobile

Lycamobile

Industry	Telecommunication
Founded	September 2006
Headquarters	United Kingdom
Key people	Subaskaran Allirajah, Chairman Premananthan Sivasamy, deputy chairman
Products	Mobile telecommunications services
Revenue	US$ 3 billion (2014)
Website	lycamobile.com

Lycamobile signage, Garratt Lane, Earlsfield, London

Lycamobile is a mobile virtual network operator (MVNO) operating in 21 countries worldwide which is currently being heavily investigated under a string of fraud allegations. The Lycamobile brand is distinct from the Lycatel brand and operates with different national corporate entities. Although there are some countries of overlap, Lycamobile and Lycatel do not necessarily operate in parallel. The bulk of Lycamobile revenue is claimed to be generated from Lycamobile's SIM products.

Lycamobile sells international pay-as-you-go SIM cards to consumers wanting to make international telephone calls. An MVNO leases radio frequency from mobile phone network operators and it forms partnerships with the operators in each country it serves. Lycamobile has also developed distinct business structures such as MVNA arrangements in different countries. Lycamobile states that its focus remains quality and affordable international calling for its customers. It has often adopted an aggressive pricing strategy on entry to new markets in order to acquire early market share. In some instances, MNO partners of Lycamobile have been surprised by the actual growth rather than their own projected estimated growth of Lycamobile's products. In 2015 Lycamobile renewed a multi-year MVNO deal with O2

The Lycamobile brand concept was launched in 2005 with the first trading using the brand taking place in 2006. Its business structure is arranged to have local national private companies branded under licence as "Lycamobile" and operating exclusively in the particular country as either a MVNO provider or as the principal wholesaler of Lycamobile-branded products. The Lycamobile brand is owned by Pettigo Comércio Internacional, Limitada, a Portuguese holding company located in Madeira, Portugal.

Since its launch in the Netherlands in 2006, Lycamobile has more than 14 million pay-as-you-go customers throughout all the countries it serves.

As of June 2016, Lycamobile is under investigation for tax fraud and money laundering. Lycamobile has rebutted the allegations.

Service differentiation

In 2015, PC Magazine's mobile analyst advised US customers to "take a look at some of the smaller virtual carriers which may offer better customer service or more customized plans" such as Lycamobile.

On the other hand, as of July 25, 2015, the Better Business Bureau says "Due to Lycamobile's failure to respond to 28 of [46] complaints, Lycamobile's rating with the BBB is an F (On a scale of A+ to F)"

Other Lyca telecommunications businesses

While Lycamobile represents the core business of Lyca, namely the offering of a MVNO telecommunications services, Lyca has other telecommunication services provided to consumers:

GT Mobile

GT Mobile (also known as "Gnanam Telecom") is a MNVO sub-brand of Lycamobile that operates in Denmark, Germany, The Netherlands, Sweden, Australia, Spain, Italy, France, Belgium, Switzerland and the United Kingdom. The brand, like its parent, is aimed at those who wish to make national and international phone calls on a pay-as-you-go basis. The GT Mobile brand offers alternative pricing structures and packages focusing more on national bundles from the Lycamobile brand

Lycatel calling cards

Lycatel is focused on the sale of calling cards to wholesalers to then sell on to the public. Lycatel offers online sales of calling cards and direct customer sales through the Lycateleshop. The Lycatel brand is not itself used as a calling card brand name, but acts as a parent brand name used on various branded calling cards. The most popular brands of Lycatel calling cards include Africa Tel, Cobra, Eurocity, One+One, Spicy Tel, Supertel, Unitel, Viper and World Call. Each calling card brand features different calling rates to different destinations with some being more suited to single use (known in the calling card industry as 'throw-away cards'). Others are more suited to occasional use but will feature a higher standard rate for each call placed. Whilst there is a fair level of confusion between pricing, Lycatel's underlying charges are significantly less than connecting international calls in a conventional sense.

The Lycatel (or as previously used "Lyca Tel") brand has been in existence since 2001 although its early ownership and operational structure were significantly distinct in the early 2000s from the present day. The present-day Lycatel brand owners and licensees form a larger organisation although the operational focus of Lycatel remains the sale of a variety of differently branded calling cards to wholesalers. Wholesalers in turn sell onto retailers who then sell primarily to expatriate customers who want to make low-cost international calls.

Lycatel primarily operates via its own national reselling companies or through its service providers in Australia, Austria, Belgium, Canada, Denmark, France, India (an outsourcing operation), Ireland, Italy, Netherlands, Norway, Portugal, Romania, Spain, Sweden, Switzerland, United Kingdom, United States and Tunisia.

Lycatel currently holds a wider country-by-country spread than the Lycamobile operations, although Lycamobile has begun operations in countries that Lycatel does not currently have a presence such as Poland. Although the calling card market is generally considered to be in decline with the arrival of mobile telephony, and its own Lycamobile products from 2007 onwards.

Lycatalk

The Lycatalk brand is also part of the Lyca family of brands and operates in the same jurisdictions as the calling card brands with the exception of Portugal. Lycatalk has less prominence than the Lycatel and Lycamobile brands but has a simply structured product with no set up fees or other maintenance charges. Lycatalk tariff rates are more settled and rarely vary wildly, unlike more aggressively price structured products such as calling cards.

Lycachat

Lycachat is a voice over IP (voIP) offering available to consumers. Lycachat benefits from the Lycamobile infrastructure and should be able to provide connection to traditional telephone networks at virtually no cost to the consumer.

Other businesses

Aside from telecommunications, there are a variety of Lyca-branded business ventures. Services range from financial products and insurance services, as well as ventures into logistics and even an airline business Lyca Airways, based in West Africa. Ventures of note include the following:

Lycamoney

Lycamoney is a pre-paid debit card offering, enabling mainly new migrants to European countries to have access to payment schemes such as MasterCard.

LycaRadio

Launched in 2013, LycaRadio was born after the acquisition by Lyca of radio frequencies previously operated by Sunrise Radio. Lycaradio offers two stations, LycaRadio and Lyca Dilse. Both stations have retained the previous format of Sunrise Radio, targeting South Asian communities. This is also in part because of regulatory requirements imposed by Ofcom.

Lyca Productions

Lyca Productions is an India-based film production venture. To date, Lyca Productions has launched one hit movie.

LycaFly LycaFly is the travel arm of the Lyca business, & specialises in offering cheap flights and holidays to predominantly Asian destinations such as India and Sri Lanka as well Nigeria. LycaFly was launched in 2007 as part of an acquisition of an existing travel agency business. The UK LycaFly business, U Can Fly Limited, is owned by Pettigo Comércio Internacional, Limitada, a Portuguese holding company located in Madeira, Portugal. Pettigo Comércio Internacional, Limitada also owns the LycaFly brand name. At present LycaFly operates only in the UK and Sri Lanka although it is likely to expand to the same countries as Lycamobile and Lycatel respectively.

Lycaremit

Lycaremit, launched in 2015 is the one of the newest ventures from the Lycagroup which acts as a money transfer service which allows users to send money abroad.

Coverage

Country	Partner network	Note	Tethering allowed	Technology
Austria	A1
Australia	Telstra
Belgium	Orange		No
Denmark	TDC
France	Bouygues
Germany	Vodafone			2G, 3G
Hong Kong	Three		No	3G
Ireland	Three		No	3G
Italy	Vodafone		No	3G
Macedonia	One.Vip			2G, 3G
Netherlands	KPN
Norway	Telia
Poland	Polkomtel
Portugal	Vodafone
Romania	Telekom Romania
Spain	Movistar
Sweden	Telenor
Switzerland	Swisscom
Tunisia	Tunisie Telecom
United Kingdom	O2
United States	T-Mobile		No	4G LTE

Charity initiatives and contributions

In December 2010, Lycamobile founder and chairman Subaskaran Allirajah, along with his mother, established The Gnanam Foundation in order to provide help for marginalised communities around the world - aiming to improve the lives of disadvantaged individuals by providing shelters, medical care and improving skills, the communities gain independence and in turn improve their quality of life and household income.[1]

One of the many projects the Gnanam Foundation has supported is Imperial College’s 2013 Raincatcher project. This involved building life-saving rainwater harvesting systems in rural Tanzania with students from Imperial College.[2] In 2012, along with the British Asian Trust, the Gnanam Foundation provided a 3 year grant offering skills training to 1,500 disadvantaged young people in India.

The Gnanam Foundation also seeks to respond to humanitarian crises. During the Ebola breakout, it donated £59,000 to Save the Children to help provide equipment and supplies, such as beds, mosquito nets and medical equipment, needed to run Ebola treatment centres.

Additionally, Lycamobile recently pledged to donate £1 per £10 top-up to charity without the customer losing out on any credit. The charity options included: Action Aid, British Heart Foundation, Cancer Research UK, NSPCC, Oxfam, RSPCA, Save the Children, UNICEF and Water Aid.

T-Mobile billing

T-Mobile in the United Kingdom charges its customers exclusive of their minutes allowance for calls to United Kingdom Lycamobile/GT Mobile numbers, despite Lycamobile UK being headquartered in London, and using United Kingdom "07"-prefixed numbers issued by Ofcom, in the UK. By contrast, Lycamobile UK does not treat calls to UK T-Mobile customers any differently and calls are charged just as any "07" UK mobile telephone numbers.

UK corporation tax and late accounts

Lycamobile has not paid any corporation tax for several years in the United Kingdom though the company put aside £9.5 million to cover "a potential liability of unpaid taxes" including "interest and penalties" in its 2015 accounts. Lycamobile's 2015 accounts were filed seven months late, appearing after Companies House threatened to strike Lycamobile off, such an action would have prevented the company from conducting business in the UK. Lycamobile had previously been threatened with being struck off in 2012, its accounts were filed two years late that year.

Conservative Party funding

Lycamobile is a significant donor to the British Conservative Party, having donated £1.3 million since 2011, including £500,000 in 2015. They also donated use of a call centre to Boris Johnson during his 2012 London mayoral election campaign.

ComReg

On 5 May 2016, Lycamobile Ireland Limited was found guilty of the offence of failing to comply with a request for information made by the Commission for Communications Regulation ComReg using its statutory information gathering powers. The company was found guilty in the Dublin District Court and fined €3000 and ordered to pay a contribution towards ComReg's costs.

The information requested was in connection with ComReg’s ongoing review of the wholesale local access (‘WLA’) and wholesale central access (‘WCA’) markets which facilitate the provision of wholesale and retail fixed telephony, broadband and other services.

External links

• Official website
• GT Mobile UK
• GT Mobile Australia
• Lycatalk UK
• [3]