The Distillery #2: Vodafone-Three TV, Digital ID, Flying Taxis & Quantum Leaps

Welcome back!

It's been a long week of tariff news, but if you're not burned out on the subject, we've got two blogs about their impact on fintech and telecoms. If you've got a specific question, feel free to drop us a line.

Also in this edition:

• Vodafone & Three may launch a TV service – here’s what it'll take to stand out.
• Digital ID is booming in the UK – but key challenges could slow adoption.
• SkyDrive’s eVTOL launch – what it means for flying taxis.
• Quantum isn’t just for sci-fi – here are the stats proving it’s big business.
• ICYMI - our latest insights on rich media messaging, QR code payments, network AI, and 6G.

TELECOMS & CONNECTIVITY

Reports: Vodafone & Three to Launch a TV Service

Reports suggest that Vodafone and Three are considering launching a subscription TV service following their £15bn merger, aiming to strengthen their position in the UK broadband market, and compete with rivals like BT and Virgin Media.

The service would likely include typical broadcast channels, alongside streaming platforms such as Netflix and Amazon Prime.

Distilled...

🟣 While discussions are still reportedly in the early stages, this move reflects a broader strategy of telcos offering bundled services to increase customer loyalty and revenue. However, with the TV market already saturated, they’ll need to leverage their large customer base and craft a compelling value proposition to stand out.

🟣 Younger audiences are shifting away from live broadcast TV, so any new service will need competitive pricing to stand out. But with the UK home to one of Europe’s largest carrier billing markets, Vodafone and Three have a real opportunity — if they get the offer right.

🟣 Strong customer experience will be key. If this plan goes ahead, investing in seamless onboarding, tech support, and user-friendly apps will help keep churn low and satisfaction high - especially for customers used to slick streaming platforms.

 

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FINTECH & PAYMENTS

New Study: 26 Million Brits to Use Digital ID Apps by 2029

Our latest study just found that almost 26 million UK residents will be using digital ID apps by 2029; up from just 7 million in 2025.

This massive increase will be largely fuelled by the forthcoming GOV.UK app, which will offer Brits a single, standardised and regulated platform to access government services and prove who they are. By 2029, we predict that it'll be in regular use by 45% of UK adults.

Distilled...

🟣 Third-party providers face an inflection point. With the GOV.UK app becoming the go-to verification method, they’ll need to pivot; offering tools to support onboarding onto the platform and aligning with the government’s trust framework to stay relevant.

🟣 Privacy remains a major concern for UK citizens, and so the report recommends a hybrid approach: one where government certification and third-party tech work together to build trust and drive adoption.

🟣 Accessibility will be a major barrier to adoption, particularly among young people. Between 4-9% are estimated to lack the required identification documents for verification, while many others face challenges with insufficient credit history, which is often used for security questions.

 

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Q&A: SkyDrive’s eVTOL Takes Off

Got a burning question about what's happening in your sector? Drop us a line, and our experts will break it down in the next issue.

How pivotal is SkyDrive’s successful test of its eVTOL? How does this compare with other manufacturers’ efforts?

"Last week, SkyDrive, a manufacturer of electric vertical takeoff and landing (eVTOL) aircraft, successfully conducted a demonstration flight of its SD-05 vehicle in Osaka, Japan.

However, this wasn’t just a photo opportunity. In the summer, SkyDrive plans to operate a full passenger service across Osaka, connecting the Osaka 2025 Expo with the city’s main transport hubs at Shin-Ōsaka and Umeda.

While similar promises were made by Volocopter for the 2024 Paris Olympic Games, what makes SkyDrive’s efforts more credible is its established infrastructure. The newly completed Osakako Vertiport, developed in collaboration with Osaka Metro, provides a solid operational base for these flights - and indeed, is one of only a few working vertiports in the world.

While competitors like Joby and Archer focus on certification, SkyDrive stands out for the tangible progress it has made through its strategic public-private partnerships; while its strategy of integrating with existing infrastructure and targeting practical, high-traffic use cases is a model worth copying.

And the market potential is there. For Japan, our latest research projects that Advanced Air Mobility (AAM) services will transport nearly half a million passengers by 2030, and almost 4 million annually by 2035 – raking in almost $5.3 billion in fares during that period. SkyDrive's momentum suggests it could be one of the first to capitalise on this opportunity."

 

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IOT & EMERGING TECHNOLOGY

Schrödinger’s Stat(s)

Quantum technology might feel like a sci-fi concept — but the market is very real. To mark World Quantum Day, we’ve un-entangled some facts worth knowing.

🟣 Quantum tech isn’t paying much right now, but the future looks bright. We're forecasting that quantum services will raise $5.3 billion in revenue by 2027; with the US and China making up 36% of this, followed by Germany, France, and the UK.

🟣 Similarly, business investments in quantum tech will approach $20 billion by 2027. For quantum providers looking to secure a share, this means offering smart, specialised solutions that tackle real challenges; including reducing error rates and boosting performance.

🟣 As quantum cyber threats rise, quantum key distribution (QKD) is gaining ground as a near-unhackable solution. This market is on track to hit $7 billion by 2030, driven by major growth in Germany and the UK, and initiatives like the EU’s OPENQKD.

🟣 QKD might not have the backing of the NSA or the UK’s National Cyber Security Centre, but that hasn’t stopped major players from jumping in. In the UK, telecom giants like BT and finance heavyweights like HSBC are already exploring the tech.

 

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ICYMI

Signal Boost

Every issue, we highlight the research, blogs, infographics, and assorted insights we're especially proud of.

🛍️ As if we didn’t already spend too much time on WhatsApp, eCommerce spend via rich media messaging channels will hit $19 billion by 2027.

⬛ Cash isn't king in Asia Pacific, where the value of QR code payments will triple to $1.2 trillion by 2029; led by markets like Vietnam and Indonesia.

🧠 Operators are set to invest $86 billion in AI over the next four years, all to build ‘zero-touch’ networks that don’t need fleshy, error-prone humans.

📡 And finally, who is 6G really for? Forget flashy use cases like remote surgeries or augmented reality - the real money is in enterprise.

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