Lycamobile settles with T-Mobile, reportedly heads to AT&T

Lyca Mobile said it settled its legal battle with T-Mobile, but details were not released. Separately, a report indicates that Lyca may shift its US MVNO operations from T-Mobile to AT&T over the next year.

Lycamobile said it settled its contentious court case with T-Mobile. Separately, the MVNO is reportedly shifting its US operations from T-Mobile's network to AT&T's network.

However, none of the companies involved would publicly discuss the situation. Thus, it's unclear exactly what's happening and why.

The topic is noteworthy considering Lycamobile at one point earlier this year accused T-Mobile of "anticompetitive conduct" and attempted to block T-Mobile's $1.3 billion acquisition of Mint Mobile and its estimated 3 million customers. T-Mobile closed that purchase in May.

For its part, Lycamobile counts roughly 16 million mobile customers globally across more than a dozen countries. It entered the US market through an MVNO with T-Mobile in 2012, but today it only counts around 542,000 customers in the US.

Lyca is also no stranger to controversy. For example, the company "largely lost" a $65 million legal dispute with UK tax authorities, according to a July report.

A lengthy battle

As Light Reading previously reported, the fight between Lycamobile and T-Mobile stretches back to 2022, when T-Mobile filed a lawsuit against Lycamobile.

In its lawsuit, T-Mobile claims it accidentally undercharged Lycamobile for more than a year of MVNO access to its network – and that Lycamobile should have caught it.

Lycamobile has a different take on the situation. The London-based MVNO argues that T-Mobile has been unwilling to renegotiate its agreement with Lycamobile.

But the companies settled that court case last month.

"On September 10, 2024, T-Mobile and Lycamobile settled all claims associated with that litigation," the companies told the FCC. Lyca told the agency that, as a result, it was withdrawing its complaints against T-Mobile. Terms of the settlement were not disclosed.

Just days before that settlement, the National Wireless Independent Dealer Association (NWIDA) reported that T-Mobile extended its MVNO deal with Lyca for one year and would use that time to shift its customer base from T-Mobile's network to AT&T's network.

It will be a difficult project, according to NWIDA. "Many of their older customers have phones that may not be compatible with the AT&T network – and if they want to move over they'll need to replace them. And, apparently 1 year to do so," the association wrote on its website.

Officials from Lyca, AT&T and T-Mobile either declined to comment on the topic or didn't offer a response to questions from Light Reading.

Pursuing the market

Meanwhile, both Lyca and T-Mobile continue to pursue their various wireless strategies in the US market.

For example, Lyca reportedly began offering a new promotion for new customers just days after its settlement with T-Mobile. The promotion offers six months of unlimited data services for $12.25 per month.

But, according to a wireless dealer survey conducted by Wave7 Research, Lyca has been dropped by some dealers in the US.

T-Mobile, for its part, in July announced its new "Your Name, Our Wireless" service for MVNOs like Lycamobile. The offering "simplifies backend set-up and day-to-day operations, allowing companies to focus on enhancing customer engagement and driving new revenue opportunities," according to T-Mobile.