Lyca Mobile
Lyca Mobile is a mobile virtual network operator operating in 23 countries, with headquarters in the United Kingdom and Sri Lanka. It provides international 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 network operators. It has also established mobile virtual network aggregator arrangements in certain regions.
History
Lycamobile was launched by British-based Sri Lankan entrepreneur Allirajah Subaskaran in 2006. By 2016, the company had more than 15million customers.In 2016, nearly twenty Lyca Mobile employees were arrested in France, and about half of them charged with money laundering. As of 2020, Lyca Mobile is involved in three major tax disputes with HM Revenue and Customs in the UK. The previous CEO, Chris Tooley, was given a suspended prison sentence in 2023 for his involvement in an "elaborate money laundering system" in France.
Operations
The company operates in 23 countries. Lycamobile offered services in Hong Kong from April 2015, but its services were suspended from 6 April 2018.In October 2023, Lycamobile's French companies were convicted of committing value-added tax and money laundering fraud, subject to appeal, with a fine of €10 million.
In August 2024, HM Revenue and Customs 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 claim, though this appears not to be related to the winding-up petitions. The company auditors had not been able to sign-off company accounts in June because of insufficient audit evidence being available to them.
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.
| Country | Year | Partner network |
| Australia | 2010 | Vodafone / TPG |
| Austria | 2013 | A1 Telekom |
| Belgium | 2007 | Telenet |
| Denmark | 2010 | TDC |
| France | 2011 | Bouygues Telecom |
| Germany | 2011 | Telefónica |
| Hong Kong | 2015-2018 | 3 |
| Ireland | 2012 | 3 |
| Italy | 2009 | Vodafone |
| Netherlands | 2006 | KPN |
| North Macedonia | 2016-2024 | A1 Macedonia |
| Norway | 2009 | Telia |
| Poland | 2011 | Plus |
| Portugal | 2012 | Vodafone |
| Romania | 2015-2023 | Telekom |
| Russia | 2019-2022 | t2 |
| South Africa | 2017-2024 | Cell C |
| Spain | 2010 | Movistar |
| Sweden | 2009 | Telenor |
| Switzerland | 2008 | Salt |
| Tunisia | 2015 | Tunisie Télécom |
| Ukraine | 2017 | 3mob |
| Uganda | 2020 | Tangerine Ltd |
| United Kingdom | 2023 | EE |
| United States | 2013 | T-Mobile |
Other businesses
GT Mobile
GT Mobile is a MNVO sub-brand of Lycamobile that operates in Denmark, Germany, The Netherlands, Sweden, Australia, Spain, Italy, France, Belgium and Switzerland.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 took over the 1035 AM radio band used by Sunrise's Kismat Radio. Programming includes Bollywood music, and special programming for ramadan.
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."
Lyca Productions
is an India-based film production venture. Lyca produced India's most expensive film, 2.0, with a budget of US$75 million; it was scheduled for release in November 2018.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.
LycaTV
Lyca TV is an online over-the-top 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.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.EAP
In 2019, EAP Broadcasting Company, one of Sri Lanka's largest entertainment companies, was acquired for $72 million by Lyca Group.Controversies
Tax evasion and money laundering (France)
After a lengthy exposé by Buzzfeed in 2015, 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.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 companies.
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.Tax evasion (Denmark)
In February 2016, Lycamobile's subsidiary in Denmark, Lycamobile Denmark, was ordered by the Danish tax authority 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. Lycamobile appealed the decision, but the Danish National Tax Tribunal upheld the ruling.Following this, Lycamobile closed its Danish operations and the local subsidiary, Lycamobile Denmark ApS, filed for bankruptcy in 2022. 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.Tax evasion (Germany)
In February 2021 Lycamobile Germany, operating on the 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.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. Lycamobile had previously been threatened with being struck off in 2012; its accounts were filed two years late that year.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 VAT irregularities.
In July 2024, CEO Richard Schäfer and CFO Nikos Paraskevopoulos left the company amid the tax evasion crisis.
In December 2024, following losses of over £25 million during their 2021/22 tax year, combined with conflicts with HM Revenue and Customs on unpaid VAT bills of up to £51 million, 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".
Political links (UK)
Lycamobile donated over £2m to the Conservative Party between 2011 and 2016, with Allirajah Subaskaran enjoying a close relationship with both David Cameron and Boris Johnson.Lycamobile had previously been threatened with being struck off in 2012. Some suggest it is because Lycamobile is a significant donor to the British Conservative Party, having donated £1.3 million since 2011, including £500,000 in 2015.
In 2019, the 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 General Election.