{{short description|Mobile virtual network operator}} {{Use dmy dates|date=February 2019}} {{Infobox company | logo = Lycamobile.svg | type = Private | founded = September 2006 | founder = [[Allirajah Subaskaran]] | hq_location = {{hlist| [[United Kingdom]]|[[Sri Lanka]]}} | key_people = Allirajah Subaskaran (Chairman) | industry = [[Telecommunications]] | caption = | products = [[Telecommunications service|Mobile telecommunications services]]<br />[[Broadcasting]] | revenue = {{Decrease}} £25.1 [[1000000 (number)|million]] (UK, 2022) | owner = | subsidiaries = [[Lyca Productions]]<br />[[EAP Films]]<br />[[Swarnavahini]]<br />[[ETV (Sri Lanka)|ETV]]<br />[[Shree FM]]<br />[[Lyca Kovai Kings]]<br />[[Jaffna Kings]] | website = {{URL|lycamobile.com}} }}
'''Lyca Mobile''' (formerly '''Lycamobile''') is a [[mobile virtual network operator]] (MVNO) operating in 18 countries, with headquarters in the United Kingdom and Sri Lanka. It provides international [[Prepay mobile phone|pay-as-you-go]] SIM cards. The company is chaired by [[Allirajah Subaskaran]], who formed the company in 2006.
As an MVNO, Lyca Mobile does not own its own mobile network but instead leases radio frequencies from established [[mobile phone network|network]] operators. It has also established mobile virtual network aggregator ([[MVNA]]) arrangements in certain regions.
== History == [[File:FSE Computer World Lycamobile, Garratt Lane, Earlsfield, London 01.jpg|thumb|Lycamobile signage, [[Garratt Lane]], [[Earlsfield]], London]] [[File:Lycastore2026.jpg|thumb|Lycamobile signage, 2025]] Lycamobile was launched by British-based [[Sri Lanka|Sri Lankan]] entrepreneur [[Allirajah Subaskaran]] in 2006.<ref>{{Cite web |title=Lyca Mobile - Leading Mobile Virtual Network Operator |url=https://www.lycamobile.co.uk/en/about-us/ |access-date=2024-06-01 |website=www.lycamobile.co.uk |language=en}}</ref> By 2016, the company had more than 15{{Nbsp}}million customers.<ref>{{Cite web |last= |first= |date=16 May 2016 |title=MVNO Monday: a guide to the week's virtual operator developments |url=https://www.telegeography.com/products/commsupdate/articles/2016/05/16/mvnomonday-a-guide-to-the-weeks-virtual-operator-developments/ |url-status=dead |archive-url=https://web.archive.org/web/20160517101526/https://www.telegeography.com/products/commsupdate/articles/2016/05/16/mvnomonday-a-guide-to-the-weeks-virtual-operator-developments/ |archive-date=17 May 2016 |website=TeleGeography |via=Internet Archive}}</ref>
In 2016, nearly twenty Lyca Mobile employees were arrested in France, and about half of them charged with money laundering.<ref>[https://www.mobilenewscwp.co.uk/2016/06/21/lycamobile-offices-raided-by-french-police-with-19-arrested/ Lycamobile offices raided], Mobile News, 21 Jun 2016.</ref><ref>[https://www.buzzfeed.com/heidiblake/this-tory-donor-was-secretly-filmed-dropping-cash-stuffed-ru This Tory donor was secretly filmed], Buzzfeed, 5 Oct 2015.</ref> As of 2020, Lyca Mobile is involved in three major tax disputes with [[HM Revenue and Customs]] in the UK.<ref name=guardian-20200202>{{cite news |url=https://www.theguardian.com/money/2020/feb/02/major-tory-donor-lycamobile-embroiled-in-three-disputes-with-hmrc |title=Major Tory donor Lycamobile embroiled in three disputes with HMRC |author1=Solomon Hughes |author2=Rob Evans |newspaper=The Guardian |date=2 February 2020 |access-date=19 February 2020}}</ref> The previous CEO, [[Chris Tooley]], was given a suspended prison sentence in 2023 for his involvement in an "elaborate money laundering system" in France.<ref>{{cite web |title=Bosses quit Tory donor’s Lycamobile amid accounting woes |url=https://www.telegraph.co.uk/business/2024/07/05/bosses-quit-tory-donors-lycamobile-amid-accounting-woes/ |website=Telegraph}}</ref>
==Operations== The company operates in 18 countries.<ref>{{Cite web |title=About Lyca Mobile |url=https://www.lycamobile.us/en/about-us/?srsltid=AfmBOorVrm0feHVpnUZL_riuOrv03uq4TNN62T1GZIUW44jjqgSP39PB |website=Lycamobile US}}</ref> Lycamobile offered services in [[Hong Kong]] from April 2015, but its services were suspended from 6 April 2018.<ref>{{Cite web |title=Office of the Communications Authority - Consumer Alert on the Service Suspension of the Lycamobile Hong Kong Limited |url=https://www.ofca.gov.hk/en/consumer_focus/education_corner/alerts/general_mobile/consumer_alert_on_service_suspension_lycamobile/index.html |archive-url=https://web.archive.org/web/20180614095925/https://www.ofca.gov.hk/en/consumer_focus/education_corner/alerts/general_mobile/consumer_alert_on_service_suspension_lycamobile/index.html |archive-date=2018-06-14 |access-date=2019-01-16 |website=www.ofca.gov.hk}}</ref>
In October 2023, Lycamobile's French companies were convicted of committing [[value-added tax]] (VAT) and money laundering fraud, subject to appeal, with a fine of €10 million.<ref name=ft-20240616>{{cite news |url=https://www.ft.com/content/6f458850-e46e-4635-9d53-1a803df553ec |title=Auditor refuses to sign off accounts of Lycamobile UK |last=Mersinoglu |first=Yasemin Craggs |newspaper=Financial Times |url-access=subscription |date=16 June 2024 |access-date=19 August 2024}}</ref>
In August 2024, [[HM Revenue and Customs]] (HMRC) filed winding-up petitions for three Lycamobile companies in the United Kingdom. A tax tribunal had ruled in favour of HMRC in July on a long running dispute over a £51 million [[value-added tax]] (VAT) claim, though this appears not to be related to the winding-up petitions.<ref name=guardian-20240814>{{cite news |url=https://www.theguardian.com/business/article/2024/aug/14/tory-donor-lycamobile-handed-winding-up-order-from-hmrc-amid-tax-dispute |title=Tory donor Lycamobile handed HMRC winding-up order amid tax dispute |last=Davies |first=Rob |newspaper=The Guardian |date=14 August 2024 |access-date=19 August 2024}}</ref> The company auditors had not been able to sign-off company accounts in June because of insufficient audit evidence being available to them.<ref name=ft-20240616/>
In the United States, as of December 2024, the [[Better Business Bureau]] stated that as Lycamobile had received 147 complaints, and had failed to respond to 13 of them, Lycamobile's rating with the BBB is an F (on a scale of A+ to F).<ref>{{Cite web |title=Lycamobile USA Inc. {{!}} BBB Business Profile {{!}} Better Business Bureau |url=https://www.bbb.org/us/nj/newark/profile/mobile-phone-service/lycamobile-usa-inc-0221-90158215 |access-date=2024-12-27 |website=www.bbb.org |language=en}}</ref>
{| class="wikitable sortable" |- !Country !Year !Partner network |- | Australia | 2014 |[[Vodafone Australia|Vodafone / TPG]]<ref>{{Cite web |date=2024-06-20 |title=Network change to the Vodafone network |url=https://www.lycamobile.com.au/en/network-change-to-the-vodafone-network/what-will-happen-to-the-inclusions-in-my-current-plan-with-the-migration-to-the-vodafone-network//lycamobile-launches-4g-in-australia |access-date=2019-01-16 |website=WhatPhone |language=en-AU}}</ref> |- |Austria |2013 |[[A1 Telekom Austria|A1 Telekom]]<ref>{{Cite web|url=https://www.telegeography.com/products/commsupdate/articles/2013/11/08/lycamobile-soft-launches-mvno-in-austria/|title=Lycamobile soft-launches MVNO in Austria|website=www.telegeography.com|access-date=2019-01-16}}</ref> |- |Belgium |2006 |[[Telenet (Belgium)|Telenet]]<ref>{{Cite web|url=http://www.lycamobile.com/lycamobile-named-as-fastest-growing-mvno-in-belgium|title=Lycamobile named as fastest growing MVNO in Belgium|website=www.lycamobile.com|access-date=2019-01-16}}</ref> |- |Denmark |2009 |Norlys<ref>{{Cite web|url=https://www.telecompaper.com/news/lycamobile-launches-mvno-in-denmark-with-tdc--750206|title=Lycamobile launches MVNO in Denmark with TDC|website=www.telecompaper.com|language=en|access-date=2019-01-16}}</ref> |- |France |2006 |[[Bouygues Telecom]]<ref>{{Cite web |date=2011-07-07 |title=LycaMobile débarque sur le réseau de Bouygues Telecom |url=https://www.echosdunet.net/dossiers/dossier_7675_lycamobile%2Bdebarque%2Bsur%2Breseau%2Bbouygues%2Btelecom%2B.html |archive-url=https://web.archive.org/web/20110811084844/https://www.echosdunet.net/dossiers/dossier_7675_lycamobile%2Bdebarque%2Bsur%2Breseau%2Bbouygues%2Btelecom%2B.html |archive-date=2011-08-11 |access-date=2019-01-16 |website=www.echosdunet.net |language=fr-fr}}</ref> |- |Germany |2012 |[[Telefónica Germany|Telefónica]]<ref>{{Cite web|url=https://www.telefonica.de/news/corporate/2024/09/neuzugang-auf-dem-mobilfunknetz-o2-telefonica-baut-das-partnergeschaeft-in-deutschland-mit-lyca-mobile-aus.html|website=www.telefonica.de|language=de|access-date=2024-12-06 |title=Neuzugang auf dem Mobilfunknetz: O2 Telefónica baut das Partnergeschäft in Deutschland mit Lyca Mobile aus }}</ref> |- |Ireland |2009 |EIR<ref>{{Cite web|url=https://switcher.ie/mobiles/networks/lycamobile/|title=Lycamobile SIM Only Deals {{!}} Switcher.ie|website=switcher.ie|access-date=2019-01-17}}</ref> |- |Italy |2010 |[[Vodafone Italy|Vodafone]]<ref>{{Cite web|url=https://www.telegeography.com/products/commsupdate/articles/2013/12/03/lycamobile-group-targets-eight-new-markets-by-feb-14-italian-unit-replaces-h3g-with-vodafone/|title=Lycamobile Group targets eight new markets by Feb-14; Italian unit replaces H3G with Vodafone|website=www.telegeography.com|access-date=2019-01-16}}</ref> |- |The Netherlands |2006 |[[KPN]]<ref>{{Cite web|url=https://www.telecompaper.com/news/lycamobile-moves-from-vodafone-to-kpn-network--964394|title=Lycamobile moves from Vodafone to KPN network|website=www.telecompaper.com|language=en|access-date=2019-01-16}}</ref> |- |Norway |2009 |[[Telia Norge|Telia]]<ref>{{Cite web|url=https://toomanyadapters.com/buying-sim-card-norway/|title=Buying a SIM Card in Norway|date=2018-02-25|website=Too Many Adapters|language=en-US|access-date=2019-01-17}}</ref> |- |Poland |2017 |[[Plus (telecommunications Poland)|Plus]]<ref>{{Cite web|url=https://media2.pl/telekomunikacja/85415-Lycamobile-nowy-operator-wirtualny-w-Polsce.html|title=Lycamobile - nowy operator wirtualny w Polsce|website=Media2.pl|language=pl|access-date=2019-01-16}}</ref> |- |Portugal |2012 |[[Vodafone Portugal|Vodafone]]<ref>{{Cite web|url=https://www.telecompaper.com/news/plintron-enters-portugal-mobile-market-with-lycamobile--906628|title=Plintron enters Portugal mobile market with Lycamobile|website=www.telecompaper.com|language=en|access-date=2019-01-16}}</ref> |- |Sweden |2009 |[[Telenor Sverige|Telenor]]<ref>{{Cite news|url=https://www.fiercewireless.com/europe/lycamobile-expands-mvno-deal-telenor-sweden-to-include-4g|title=Lycamobile extends Telenor Sweden network access deal to include 4G data services {{!}} FierceWireless|newspaper=Fierce Wireless|date=2 November 2016|language=en|access-date=2019-01-17}}</ref> |- |Switzerland |2009 |[[Salt Mobile|Salt]]<ref>{{Cite web |last=Wahrheit |title=Mit Lycamobile ROAMING fast gratis |url=https://www.ktipp.ch/artikel/d/mit-lycamobile-roaming-fast-gratis/ |archive-url=https://web.archive.org/web/20191225111418/https://www.ktipp.ch/artikel/artikeldetail/mit-lycamobile-roaming-fast-gratis/ |archive-date=2019-12-25 |access-date=2019-01-16 |website=www.ktipp.ch |language=en}}</ref> |- |Ukraine |2017 |[[TriMob|3mob]]<ref>{{Cite press release|url=https://www.prnewswire.com/news-releases/lycamobile-granted-mvno-licence-in-ukraine-633875963.html|title=Lycamobile Granted MVNO Licence in Ukraine|last=Lycamobile|website=www.prnewswire.com|language=en|access-date=2019-01-16}}</ref> |- |Uganda |2020 |MNO (Tangerine)<ref>{{Cite web|title=Lycamobile a new telecom company to launch in Uganda|url=https://www.sautitech.com/telecom/lycamobile-uganda/|access-date=2020-08-27|website=Sautitech|date=28 December 2018|language=en}}</ref> |- |United Kingdom |2006 |[[EE (telecommunications)|EE]]<ref name="uk-ee-bt-newsroom">{{cite web |title=Lyca Mobile MVNO partnership with BT Wholesale |url=https://newsroom.bt.com/lyca-mobile-partners-with-bt-wholesale-levelling-up-connectivity-speed-and-coverage-for-customers/ |website=BT Newsroom |access-date=28 June 2023 |language=en}}</ref> |- |United States |2014 |[[T-Mobile US|T-Mobile]] + [[AT&T]]<ref>{{Cite web|url=https://www.telegeography.com/products/commsupdate/articles/2013/03/20/lycamobile-announces-us-mvno-launch/|title=Lycamobile announces US MVNO launch|last=PriMetrica|first=TeleGeography A. Division of|website=telegeography.com|language=en-us|access-date=2019-01-16}}</ref> |}
==Other businesses== ===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]] and [[Switzerland]] (the [[United Kingdom]] arm has been merged in Lycamobile).<ref name="prepaidmvno.com">{{cite web |url=https://www.mvnodynamics.com/ |title=Benchmarking The Mvno Industry |publisher=Mvno Dynamics |access-date=14 March 2017 |archive-url=https://web.archive.org/web/20170313040941/https://www.mvnodynamics.com/ |archive-date=13 March 2017 |url-status=dead |df=dmy-all }}</ref>
===Lyca Radio=== {{Main|Lyca Radio}} Launched in 2013, Lyca Radio was born after the acquisition by Lyca of radio frequencies previously operated by [[Sunrise Radio]]. Lyca offers two stations, Lyca Radio and Lyca Gold. 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.
DilSe radio (now Lyca Gold) took over the 1035 AM radio band used by Sunrise's [[Kismat Radio]]. Programming includes Bollywood music, and special programming for [[ramadan]].<ref>{{cite web |url=https://www.bizasialive.com/maher-khan-to-lead-lyca-dilses-ramadan-show/ |title=Maher Khan to lead Lyca DilSe's Ramadan show |first=Raj |last=Baddhan |date=6 June 2016 |access-date=11 January 2020 }}</ref>
On 19 May 2023, Lyca Radio was found to be in breach of Ofcom regulations as it failed to deliver local news. According to Lyca, this was due to the departure of its local news journalist and that it had been "very hard to fill the role."<ref>{{Cite web |date=30 May 2024 |title=Ofcom Press Release |url=https://www.ofcom.org.uk/__data/assets/pdf_file/0012/261030/Licensing-Decision-Lyca-Media-II-Limited.pdf }}</ref> ===Lyca Productions=== {{Main|Lyca Productions}}
[[Lyca Productions]] is an India-based film production venture. Lyca produced India's most expensive film, ''[[2.0 (film)|2.0]]'', with a budget of US$75 million; it was scheduled for release in November 2018.<ref>{{Cite web|url=http://lycaproductions.in/|title=Lyca Productions – Lyca Productions|language=en-US|access-date=2019-09-05}}</ref>
Whilst filming ''Indian 2'', three people died and ten were injured when a crane collapsed during filming. The crane operator, Rajan, fled the scene immediately after the accident.<ref>{{Cite web |last=Pawar |first=Jayanthi |date=2020-02-20 |title=Three killed as crane falls on film crew at Shankar and Kamal's 'Indian 2' shooting spot |url=https://www.newindianexpress.com/states/tamil-nadu/2020/Feb/20/three-killed-as-crane-falls-on-film-crew-at-shankar-and-kamals-indian-2-shooting-spot-2105794.html |access-date=2024-05-30 |website=The New Indian Express |language=en}}</ref>
===LycaTV=== Lyca TV is an online over-the-top (OTT) ethnic entertainment provider, currently available in 20 countries and in nine languages. The service, launched in 2015, is mainly targeted at major expat communities spread across the world.<ref>{{cite web|url=http://www.movilonia.com/noticias/lycatv-television-en-streaming-y-lycachat-app-de-mensajeria-instantanea/ |title=Lycamobile incorpora LycaTV, su servicio de TV en streaming |website=Movilonia.com |date=18 April 2016 |access-date=14 March 2017}}</ref><ref>{{cite web |date=22 April 2016 |title=Nace LycaTV, la plataforma de TV internacional de LycaMobile |url=http://computerhoy.com/noticias/imagen-sonido/nace-lycatv-plataforma-tv-internacional-lycamobile-43870 |archive-url=https://web.archive.org/web/20160423112324/https://computerhoy.com/noticias/imagen-sonido/nace-lycatv-plataforma-tv-internacional-lycamobile-43870 |archive-date=2016-04-23 |access-date=14 March 2017 |website=ComputerHoy.com |language=es}}</ref><ref>{{cite web|url=http://www.gmanetwork.com/international/articles/2015-11-11/714/GMA-International-and-Lyca-TV-launch-Kapuso-channels-in-Europe/ |title=GMA International and Lyca TV launch Kapuso channels in Europe | GMA International and Lyca TV launch Kapuso channels in Europe |website=Gmanetwork.com |access-date=14 March 2017}}</ref>
===Lycalotto=== Lycalotto, launched in March 2017, is a lottery syndicate platform available in the UK and Ireland. Lycalotto offers access to lottery draws from around the world, including those not normally accessible in the region such as the US Powerball.<ref>{{cite web|title=Lyca introduces new lottery syndicate platform Lycalotto|url=https://www.telecompaper.com/news/lyca-introduces-new-lottery-syndicate-platform-lycalotto--1187337|website=www.telecompaper.com|access-date=30 March 2017}}</ref>
=== EAP === In 2019, EAP Broadcasting Company, one of Sri Lanka's largest entertainment companies, was acquired for $72 million by Lyca Group.<ref>{{Cite web |date=2023-03-23 |title=Aliraja to buy state-owned shares in Telecom & Lanka Hospitals! |url=https://srilankamirror.com/biz/aliraja-to-buy-state-owned-shares-in-telecom-lanka-hospitals/ |access-date=2024-07-08 |website=Sri Lanka Mirror |language=en-US}}</ref>
==<span id=ComReg>Controversies</span>==
=== Tax evasion and money laundering (France) === After a lengthy exposé by Buzzfeed in 2015,<ref>{{Cite web |last=Holmes |first=Heidi Blake, Michael Gillard, Tom Warren, Jane Bradley, Richard |date=2015-10-05 |title=This Tory Donor Was Secretly Filmed Dropping Cash-Stuffed Rucksacks At Post Offices |url=https://www.buzzfeed.com/heidiblake/this-tory-donor-was-secretly-filmed-dropping-cash-stuffed-ru |access-date=2024-03-18 |website=BuzzFeed |language=en-gb}}</ref> the French authorities began an investigation into the group which led to 19 arrests. The police stated that "The charges relate to [[money laundering]] of at least €17m and VAT fraud of several million euros". In addition to the arrests, the police also seized €1m in raids on Lycamobile's Paris headquarters and a series of addresses across the city.<ref>{{Cite web |last=Holmes |first=Heidi Blake, Jane Bradley, Tom Warren, Richard |date=2016-06-24 |title=Tories' Biggest Donor Lycamobile Raided In Criminal Money-Laundering Probe |url=https://www.buzzfeed.com/heidiblake/the-french-connection |access-date=2024-02-26 |website=BuzzFeed |language=en-gb}}</ref>
The French court ruling was released on 26 October 2023, stating that the company had "knowingly participated in an elaborate money laundering system". The system involved the use of [[Shell corporation|shell companies]].<ref>{{Cite news |date=2023-10-26 |title=Les sociétés françaises de Lycamobile condamnées à 10 millions d'euros d'amende |url=https://www.lemonde.fr/economie/article/2023/10/26/les-societes-francaises-de-lycamobile-condamnees-a-10-millions-d-euros-d-amende_6196666_3234.html |access-date=2024-02-26 |work=Le Monde.fr |language=fr}}</ref>
=== Tax evasion (Norway) === In January 2023 [[Okokrim]], the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime, sentenced two people to over two years in prison for complicity in a "particularly advanced and reprehensible" tax evasion scheme in connection with the sale of calling cards for Lycatel and Lycamobile in Norway in the period 2010–2016.<ref>{{Cite web |title=Lycamobile-saken: Fengselsstraff og forelegg - Økokrim |url=https://www.okokrim.no/lycamobile-saken-fengselsstraff-og-forelegg.6579387-549344.html |access-date=2024-02-26 |website=www.okokrim.no}}</ref>
=== Tax evasion (Denmark) === In February 2016, Lycamobile's subsidiary in Denmark, Lycamobile Denmark, was ordered by the Danish tax authority (SKAT) to pay approximately €9.6 million in unpaid tax. SKAT had assessed that Lycamobile had failed to correctly report and pay VAT on the sale of prepaid SIM cards.<ref>{{Cite web |title=Mobile-gigant betalte ikke moms: Skal betale over 71 millioner kroner i efterregning |url=https://www.berlingske.dk/business/mobile-gigant-betalte-ikke-moms-skal-betale-over-71-millioner-kroner-i |url-status=dead |access-date=2024-11-15 |website=Berlingske |language=da}}</ref> Lycamobile appealed the decision, but the Danish National Tax Tribunal upheld the ruling.<ref name=":A">The 2021 ruling of the National Tax Tribunal (Landsskatteretten) confirmed the DKK 71.7 million VAT assessment.</ref>
Following this, Lycamobile closed its Danish operations and the local subsidiary, Lycamobile Denmark ApS, filed for bankruptcy in 2022.<ref>{{Cite web |title=Lycamobile Denmark ApS er erklæret konkurs |url=https://datacvr.virk.dk/enhed/virksomhed/30325992 |access-date=2024-11-15 |website=CVR - Central Business Register (Denmark)}}</ref> The company subsequently continued to provide services to its Danish customers, effectively transferring the administrative and operational base to its UK entity.
=== Money laundering (India) === In May 2023, the Lyca Productions offices were raided by the Indian Enforcement Directorate. The raid resulted in the discovery of "incriminating" evidence reflecting loans and investments made without any due diligence or rationale into the Kallal Group by Pettigo Commercio Internacional LDA, a Portuguese subsidiary of Lycamobile.<ref>{{Cite web |title=Udhayanidhi Stalin Foundation's Rs 34 Lakh attached by Enforcement Directorate |url=https://www.indiatoday.in/india/story/udhayanidhi-stalin-foundations-rs-34-lakh-attached-by-enforcement-directorate-2385272-2023-05-27 |access-date=2024-02-26 |website=India Today |date=27 May 2023 |language=en}}</ref><ref>{{Cite web |date=26 Feb 2024 |title=ED Press Release |url=https://enforcementdirectorate.gov.in/sites/default/files/latestnews/Press%20Release%20-%20Kallal%20Group%20-27.5.2023.pdf}}</ref>{{Primary source inline|date=August 2025}}
=== Tax evasion (Germany) === In February 2021 Lycamobile Germany, operating on the [[Vodafone|Vodafone Network]], was found to have not paid over €70m in sales taxes by the Federal Finance Court in Germany. Lycamobile unsuccessfully argued that by the use of a sister company in Ireland, they were able to legally avoid paying the tax.<ref>{{Cite web |date=5 December 2021 |title=Wie der Mobilfunker Lycamobile 70 Millionen Euro Steuerschuld anhäufte und pleiteging |url=https://www.handelsblatt.com/technik/it-internet/telekommunikation-wie-der-mobilfunker-lycamobile-70-millionen-euro-steuerschuld-anhaeufte-und-pleiteging/27855112.html |access-date=2024-03-18 |website=Handelsblatt |language=de}}</ref><ref>{{Cite web |last=Gajek |first=Henning |date=2021-12-06 |title=Lycamobile Deutschland: Nach Umbenennung insolvent |url=https://www.teltarif.de/lycamobile-umbenennung-umsatzsteuer-insolvenz/news/86538.html |access-date=2024-02-26 |website=www.teltarif.de |language=de}}</ref><ref>{{Cite web |date=2016-06-02 |title=Lycamobile: Die dubiosen Methoden des Mobilfunkanbieters - WELT |url=https://www.welt.de/wirtschaft/article155866781/Lycamobile-Das-unheimliche-Telefon-Imperium.html |access-date=2024-02-26 |website=DIE WELT |language=de}}</ref><ref>{{Cite web |last=Nouvertné |first=Dr Richard |date=2021-12-20 |title=Lycamobile Insolvency Germany - Filing Claims |url=https://se-legal.de/lycamobile-insolvency-germany-filing-claims/?lang=en |access-date=2024-02-26 |website=Schlun & Elseven |language=en}}</ref>
=== Tax evasion and redundancy talks (UK) === 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.<ref name="PrivateEyeOct">{{cite news |date=30 October 2015 |title=Called to account |work=[[Private Eye (magazine)|Private Eye]] |page=37 |issue=1404}}</ref> Lycamobile had previously been threatened with being struck off in 2012; its accounts were filed two years late that year.<ref name="GuardJun12">{{cite news |date=4 June 2012 |title=Lycamobile is Tories' top corporate donor - but pays no corporation tax |url=https://www.theguardian.com/politics/2012/jun/04/lycamobile-tories-biggest-corporate-donor |access-date=11 November 2015 |work=The Guardian}}</ref>
In February 2023, Lycamobile's auditors stated they had been "unable to obtain sufficient appropriate audit evidence" regarding loans of £18 million, and there is a further £169 million of complex debt within related companies. Lycamobile faces a £100 million demand over alleged [[Value-added tax|VAT]] irregularities.<ref name="telegraph-20230212">{{cite news |last=Gill |first=Oliver |date=12 February 2023 |title=Tory donor plunged into accounting row as he grapples with £106m tax dispute |url=https://www.telegraph.co.uk/business/2023/02/12/tory-donor-plunged-accounting-row-grapples-106m-tax-dispute/ |url-access=limited |access-date=13 February 2023 |newspaper=The Daily Telegraph}}</ref>
In July 2024, CEO Richard Schäfer and CFO Nikos Paraskevopoulos left the company amid the tax evasion crisis.<ref>{{cite news|url=https://www.msn.com/en-gb/money/other/bosses-quit-tory-donor-s-lycamobile-amid-accounting-woes/ar-BB1pu18S|title=Bosses quit Tory donor's Lycamobile amid accounting woes|date=5 July 2024|first1=James|last1=Warrington|first2=Matthew|last2=Field|work=MSN}}</ref>
In December 2024, following losses of over £25 million during their 2021/22 tax year,<ref>{{Cite web |title=LYCAMOBILE UK LIMITED filing history - Find and update company information - GOV.UK |url=https://find-and-update.company-information.service.gov.uk/company/05903820/filing-history |access-date=2024-12-16 |website=find-and-update.company-information.service.gov.uk |language=en}}</ref> combined with conflicts with [[HM Revenue and Customs]] on unpaid VAT bills of up to £51 million,<ref>{{Cite news |last1=Mersinoglu |first1=Yasemin Craggs |last2=Gray |first2=Alistair |last3=Agyemang |first3=Emma |date=2024-07-30 |title=Lycamobile UK loses £51mn value added tax case |url=https://www.ft.com/content/53adfbe5-7f6d-4fe8-a245-c99217467d3b |access-date=2024-12-16 |work=Financial Times}}</ref> Lycamobile announced the risk of redundancy of up to 316 UK staff, bringing the total down to 48, after staff at their [[City of London]] headquarters were told the company was facing "pretty serious challenges".<ref>{{Cite news |last=Davies |first=Rob |date=2024-12-16 |title=Lycamobile tells nearly 90% of UK staff they could lose their jobs |url=https://www.theguardian.com/business/2024/dec/16/lycamobile-tells-nearly-90-of-uk-staff-they-could-lose-their-jobs |access-date=2024-12-16 |work=The Guardian |language=en-GB |issn=0261-3077}}</ref>
=== Political links (UK) === Lycamobile donated over £2m to the [[Conservative Party (UK)|Conservative Party]] between 2011 and 2016, with Allirajah Subaskaran enjoying a close relationship with both [[David Cameron]] and [[Boris Johnson]].<ref>{{Cite web |last=Holmes |first=Heidi Blake, Jane Bradley, Tom Warren, Richard |date=2016-06-24 |title=Tories' Biggest Donor Lycamobile Raided In Criminal Money-Laundering Probe |url=https://www.buzzfeed.com/heidiblake/the-french-connection |access-date=2024-03-20 |website=BuzzFeed |language=en-gb}}</ref>
Lycamobile had previously been threatened with being struck off in 2012.<ref name="GuardJun12" /> Some suggest it is because Lycamobile is a significant donor to the British [[Conservative Party (UK)|Conservative Party]], having donated £1.3 million since 2011, including £500,000 in 2015.<ref name="PrivateEyeOct" />
In 2019, the [[Labour Party (UK)|Labour Party]] described Johnson as "unfit" to be prime minister, following reports he attended a private dinner with Allirajah in an attempt to gain more funding in the run up to the [[2019 United Kingdom general election|2019 General Election]].<ref>{{Cite web |last=Wickham |first=Tom Warren, Alex |date=2019-07-04 |title=Boris Johnson Held A Secretive Dinner At A Restaurant Owned By Donors Accused Of Money Laundering |url=https://www.buzzfeed.com/tomwarren/boris-johnson-lycamobile-dinner-money-laundering |access-date=2024-12-16 |website=BuzzFeed |language=en-gb}}</ref>
== Regulatory failures == Lycamobile has been the subject of multiple regulatory actions. These primarily relate to failures to collect, verify, or provide customer identity information to the regulatory authorities. This behaviour is widespread across the group with regulators taking similar action against the group in Australia, Belgium, Germany, Norway and Spain. These regulatory actions have resulted in significant financial penalties.<ref>{{Cite web |date=26 Feb 2024 |title=AMCA release |url=https://www.acma.gov.au/articles/2022-06/lycamobile-pays-186480-penalty-public-safety-failures}}</ref><ref>{{Cite web |date=26 February 2024 |title=BIPT Release |url=https://www.bipt.be/operators/publication/the-bipt-imposes-a-1385000-fine-on-lycamobile}}</ref><ref>{{Cite web |title=La CNMC sanciona a Lycamobile por no suministrar datos de abonados {{!}} CNMC |url=https://www.cnmc.es/prensa/sancion-lycamobile-20220120 |access-date=2024-02-26 |website=www.cnmc.es}}</ref>
=== Regulatory failures (Australia) ===
In May 2021, Lycamobile paid A$604,800 after an ACMA investigation found "prolonged and large-scale customer data failures" that compromised public safety. The breaches included: * Failure to provide accurate customer information for 245,902 subscribers to the Integrated Public Number Database (IPND), which is used by emergency services (Triple Zero).<ref>{{Cite web |title=Lycamobile pays $604,800 over mishandling of customer data |url=https://www.acma.gov.au/articles/2021-05/lycamobile-pays-604800-over-mishandling-customer-data |access-date=2024-11-15 |website=ACMA}}</ref> * Failure to comply with ID check rules for 4,207 prepaid mobile customers when activating services.<ref>{{Cite web |title=Australian regulator fines Lycamobile for 'dangerous' failures |url=https://capacityglobal.com/news/australian-regulator-fines-lycamobile-for-dangerous-failures/ |access-date=2024-11-15 |website=Capacity Media}}</ref>
In June 2022, the ACMA issued a further penalty of A$186,480 after Lycamobile failed to comply with the court-enforceable undertaking and remedial direction issued in 2021, citing the company's "ongoing disregard for its obligations" by missing deadlines and providing inadequate reports.<ref>{{Cite web |title=Lycamobile pays $186,480 penalty for public safety failures |url=https://www.acma.gov.au/articles/2022-06/lycamobile-pays-186480-penalty-public-safety-failures |access-date=2024-11-15 |website=ACMA}}</ref>
Separately, in October 2020, Lycamobile paid A$12,600 after the ACCC issued an infringement notice for alleged false or misleading representations. The company had advertised its unlimited plans on social media, when in fact the plans had a capped data allowance..<ref>{{Cite web |title=Amaysim and Lycamobile pay penalties over ads for 'unlimited' mobile plans |url=https://www.accc.gov.au/media-release/amaysim-and-lycamobile-pay-penalties-over-ads-for-unlimited-mobile-plans |access-date=2024-11-15 |website=ACCC}}</ref>
=== Corporate structure concerns === The corporate structure of the group came under scrutiny in 2017 when [[KPMG]] resigned as auditors for Lycamobile UK Limited, stating that they had difficulties in obtaining audit evidence at this company and for related audits of its related UK companies as a result of the structure and oversight of the company's system of financial reporting.<ref>{{Cite web|url=https://s3.eu-west-2.amazonaws.com/document-api-images-live.ch.gov.uk/docs/JqQZ1i50CtI0388kcFgJhS6NNk_LItWG-CpQHjOykR8/application-pdf?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Credential=ASIAWRGBDBV3HYOYMR3Q%2F20240320%2Feu-west-2%2Fs3%2Faws4_request&X-Amz-Date=20240320T192450Z&X-Amz-Expires=60&X-Amz-Security-Token=IQoJb3JpZ2luX2VjEP%2F%2F%2F%2F%2F%2F%2F%2F%2F%2F%2FwEaCWV1LXdlc3QtMiJIMEYCIQC0wUhAp7q6uynfS1EcMEolaT9I4MDttrIvQmSfTFw32AIhAKXvc4hYXFnl0Kuv6reXpDRueRzfG4RolxH6%2FmUZOw4bKrsFCBgQBRoMNDQ5MjI5MDMyODIyIgzEAnNDz7PiJcuXoc8qmAWo2N8S6H8rrc5zmd84pA3X%2F67ZeMa3nwPByRnnBD2Q%2FvuJ8TspCzN9g7kwqdM7zUd3f%2FHOnQolywn2N2iHHE2Nrfr47N%2B08aJoA3CxP9D7txjfO9Qs2ifuEdQo3i%2BWhgEzK%2BhuQHmX%2BLhFjgJnkmqvHwuB2XoD%2BeCtVWuc5JoLEW0vLC5DqTXTEiyY1tK96cZvBcplstmDTIxcPSYUG7yVrwqVXDGT92T%2Bzsuq6fpMMV6E9Z5vB22DYRs6FwfeIBsFPH8RnhwbLOArtzQZdEmVyjdDkgRoTWK9bUgT0iCWz%2BSxVXY08aGSoJEZaEYMQdIaBHFFXm5XFToDOZUimR4uhq%2FoEkloRcQmVKala5hDQHeD2%2FYlsh8WIrfjBlXOqkDlhglAyujV%2FqteT9znCOaJ0%2Fy6xzih2ynb6Nmx0MLkQqc%2BZzMDYh7PtP0NYjYA%2FpXh8QXYKN5CAV381RvgFxN5GUpmh38bZmVNAcdQZ40jByZ3lKRRvJFSpnDNVBL%2B7riGCFnT8qk90akOBIIyJhqYpTO0NkwSyV9ZUb9aV1McIhlGZiqrLHkBWyfYzCaReDMLnm9lErJ5A4fTcHhOdIag79W%2Fkw80QrnivfhaZ50PSKAlvs3J0FApIR0X3n%2F1jftO2ucSARtkhYaKQAL%2BeYRwLTeJW2Gp9%2BRuqDKCTR3O6Kk%2BQ%2FOGO5A8ejR18G0w4eLgnFNGfWa7HNLvFLUtwH0VfTt6af%2FE4Fzok2mIeYX3G7S7D5nT7mBRNMecVCOanPfOYA9%2FpO2dyvSzL%2B0W4BtCc2r8MJSBMOjXIA3NQzjwbi9dbDBWkHZ0DplZXNepFRaWhzhyR6oS%2FiRgP%2BdZ%2FMRboZB06b6K8pjdq%2FssMl7BdisIRaOCBO02MObo668GOrABlXVhH1j5NIEwZPV2NHqbG2B8%2BPeiDch%2BC%2B8bs7Ohu8q3DYWewUY5OIHnShxBxgPZ3ofE%2BbS3s3F8DZFT5xTIzPryM9kVw0e8H5oBMrC760gxZHifLf4EDXU%2FNCylXudhguRqbHZ3qsFlzxedCFs46sIYL2VAo9y4lrq1Qls%2BUzCkfbZ7wifGBB8GZr%2Fq6ETJKv%2BuzLxZqnDExRWe9Crp7nqs%2BIaqeoOTnNCNYSsHgTU%3D&X-Amz-SignedHeaders=host&response-content-disposition=inline%3Bfilename%3D%22companies_house_document.pdf%22&X-Amz-Signature=319e94c2aaa72b3758e574717a07fe3d085638fac44e56c24f58405bf7d8eae1|title=Resignation filing}}</ref>
The 2021 audited report<ref>{{Cite web |title=LYCAMOBILE UK LIMITED filing history - Find and update company information - GOV.UK |url=https://find-and-update.company-information.service.gov.uk/company/05903820/filing-history |access-date=2024-02-26 |website=find-and-update.company-information.service.gov.uk |language=en}}</ref> published on the Companies House website states that the company is in dispute with HM Revenue and Customs, in relation to treatment of VAT on certain classes of transactions. A provision has been recorded of £105.5m to reflect the Company's current best estimate of the potential exposure as at 31 December 2021, including penalties and interest.
Whilst the Group CEO is listed as Richard Schafer, the most recent annual report published by Companies House for the year ended 31 December 2021 for Lycamobile UK Limited states that "The majority of the cash flows associated with investing and financing activities are ultimately either discretionary and/or with related parties under the control of Mr A Subaskaran".
Subsequent to the release of the 2022 Lycamobile UK accounts, several articles were written about the company.<ref>{{Cite news |title=Auditor refuses to sign off accounts of Lycamobile UK |url=https://www.ft.com/content/6f458850-e46e-4635-9d53-1a803df553ec |access-date=2024-06-25 |newspaper=Financial Times|date=16 June 2024 |last1=Mersinoglu |first1=Yasemin Craggs }}</ref><ref>{{Cite news |last1=Warrington |first1=James |last2=Field |first2=Matthew |date=2024-06-15 |title=Auditors refuse to sign off accounts of former Tory donor's mobile firm |url=https://www.telegraph.co.uk/business/2024/06/15/auditors-sign-off-accounts-former-tory-donor-mobile-firm/ |access-date=2024-06-25 |work=The Telegraph |language=en-GB |issn=0307-1235}}</ref><ref name="auto">{{Cite web |last=Jackson |first=Mark |date=2024-06-17 |title=Lyca Mobile UK Auditor PKF Littlejohn Refuses to Sign Off Accounts |url=https://www.ispreview.co.uk/index.php/2024/06/lyca-mobile-uk-auditor-pkf-littlejohn-refuses-to-sign-off-accounts.html |access-date=2024-06-25 |website=ISPreview UK |language=en}}</ref> Lyca responded to the article written by ISP Review stating ''“Lyca has a number of successful private businesses and entities under common control, but it is not a ‘group’. There is no obligation to produce consolidated group accounts, nor to have these audited. As a result, no single auditor has a remit to audit or review related party transactions, which is noted by the auditor of Lycamobile UK as a reason for the disclaimer in the audit report.”''<ref name="auto"/>
=== Related Party Loans === Across Lycamobile UK Limited and Thames Quay Properties Holdings Limited, [[Subaskaran Allirajah|Mr Allirajah]] and his wife have taken a total of £45.240m and £24m respectively in loans at below market rates. In addition to these loans, three employees have also received zero interest loans from WWW Holding Company Limited. A S Premananthan (Deputy Chairman) has received £3.329m, M A Malique received £3.329m and [[Chris Tooley]], the company's former CEO, received £3.329m. These amounts are as reflected in the audited accounts for the 2020 financial year. As of 4 June 2024, no further accounts have been filed.<ref>{{Cite web |title=WWW HOLDING COMPANY LIMITED filing history - Find and update company information - GOV.UK |url=https://find-and-update.company-information.service.gov.uk/company/05049626/filing-history |access-date=2024-06-04 |website=find-and-update.company-information.service.gov.uk |language=en}}</ref><ref>{{Cite web |date=30 May 2024 |title=Thames Quay Holdings Filings Page |url=https://find-and-update.company-information.service.gov.uk/company/08787174/filing-history }}</ref><ref>{{Cite web |title=LYCAMOBILE UK LIMITED filing history - Find and update company information - GOV.UK |url=https://find-and-update.company-information.service.gov.uk/company/05903820/filing-history |access-date=2024-06-04 |website=find-and-update.company-information.service.gov.uk |language=en}}</ref>
Thames Properties Holdings filed its 2022 accounts in March 2024. Despite making a loss of approximately £30 million, the company saw fit to offer a zero interest, unsecured loan of £16 million to Prema Subaskaran.
Lycamobile UK Limited, another UK subsidiary, also reflects loans to the Chairman and his wife totalling £45 million and £8.325 million respectively. As a result of these loans, the company's lack of liquidity and the lack of sufficient appropriate audit evidence provided to the auditors, PKF Littlejohn LLP, expressed a disclaimer of [[Auditor's report|opinion]] on the audited accounts. A disclaimer of opinion is only given in instances where:
* A lack of independence, or material conflict(s) of interest, exist between the auditor and the auditee (SAS No. 26) * There are significant scope limitations, whether intentional or not, which hinder the auditor's work in obtaining evidence and performing procedures (SAS No. 58); * There is a substantial doubt about the auditee's ability to continue as a [[going concern]] or, in other words, continue operating (SAS No. 59) * There are significant uncertainties within the auditee (SAS No. 79)
The auditors of Lycatel Services Limited, PKF Littlejohn, provided a qualified opinion on the accounts<ref>{{Cite web |title=LYCATEL SERVICES LIMITED filing history - Find and update company information - GOV.UK |url=https://find-and-update.company-information.service.gov.uk/company/05396108/filing-history |access-date=2024-06-25 |website=find-and-update.company-information.service.gov.uk |language=en}}</ref> and state that they were unable to obtain audit evidence relating to the recoverability of the employee [[loan receivable|loan receivables]] as it was not possible for management to provide them with sufficient evidence to support the net wealth of the employees to whom the company had advanced loans with an outstanding amount of £2,037,761.<ref name="auto1">{{Cite web |title=LYCATEL DISTRIBUTION UK LIMITED filing history - Find and update company information - GOV.UK |url=https://find-and-update.company-information.service.gov.uk/company/06141057/filing-history |access-date=2024-06-25 |website=find-and-update.company-information.service.gov.uk |language=en}}</ref>
=== Other controversies === 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]].<ref name="ComReg Website">{{cite web|url=http://www.comreg.ie/_fileupload/publications/ComReg1634.pdf |title=ComReg -v- Lycamobile Ireland : District Court Hearing on Failure to Provide Information to ComReg |website=Comreg.ie |access-date=14 March 2017}}</ref>
[[T-Mobile UK|T-Mobile]] in the United Kingdom charged its customers exclusive of their minutes 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 did not treat calls to UK T-Mobile customers any differently and calls were charged just as any "07" UK mobile telephone numbers.<ref>{{cite web|date=5 July 2011 |title=T-Mobile and Lycamobile trade insults over charges |url=http://www.mobilenewscwp.co.uk/2011/07/05/t-mobile-and-lycamobile-trade-insults-over-charges/ |archive-url=https://web.archive.org/web/20160305051526/https://mobilenewscwp.co.uk/2011/07/05/t-mobile-and-lycamobile-trade-insults-over-charges/ |archive-date=2016-03-05 |access-date=14 March 2017 |website=Mobilenewscwp.co.uk}}</ref>
==Data leak== On 30 September 2023, Lycamobile suffered a global service disruption in most countries, except the US and Ukraine. The disruption was later identified as a cyber attack. On 6 October, the company released a statement to inform customers about the attack, and the data leak as the result of the attack.<ref>{{cite web | url=https://www.lycamobile.co.uk/en/update | title=Notification to customers }}</ref>
==References== {{Reflist}}
==External links== *{{Official website|http://lycamobile.com}} <!--There's no need to add any of the individual national sites, like lycamobile.us-->
{{Australian mobile phone companies}} {{Irish mobile phone companies}} {{Italian mobile phone companies}} {{Mobile phone companies in Ukraine}} {{Mobile network operators in North Macedonia|state=collapsed}} {{Polish mobile phone companies}} {{UK mobile phone companies}} {{US mobile phone companies}} {{Telecommunications industry in the United Kingdom}} {{Lyca Productions}}
[[Category:Mobile virtual network operators]] [[Category:Telecommunications companies established in 2006]] [[Category:Mobile phone companies of North Macedonia]] [[Category:Telecommunications companies of North Macedonia]] [[Category:Lyca Productions]]