LONDON-Tesco, one of the United Kingdom’s major supermarket chains, announced plans to launch its own mobile service in partnership with MmO2.
The supermarket will offer branded mobile services to the consumer market based on MmO2’s network via its stores countrywide. The 50:50 joint venture is expected to begin delivering services later this year, initially in the form of pre-paid phones to be rolled out via Tesco stores, including its online site (tesco.com), by Christmas. Postpaid contracts will be launched through the Web site shortly afterward. The service will also provide alerts of supermarket offers.
Both O2 and Tesco are to invest $13 million into the joint venture during the first two years of operation. The deal will offer MmO2 a new mobile retail business and access to Tesco’s 14 million customers every week, while allowing Tesco to further expand its telecom offering to develop new revenue streams. The supermarket chain has already announced a low-cost fixed-line telecom service in partnership with Cable & Wireless, scheduled for launch later this year.
Virgin Mobile also offers MVNO services in the competitive U.K. market, which also has five licensed second- and third-generation mobile operators.
