Mobile provider Tesco Mobile (Tesco plc) has today announced that they’ve renewed their existing Mobile Virtual Network Operator (MVNO) partnership with O2 (Virgin Media) to run for another 10 years, which marks a significant commitment given that MVNO deals usually attract 5-year terms.
The deal signals strong confidence in VMO2’s platform, which is despite the fact that O2 doesn’t always deliver the best UK 4G and 5G data / broadband speeds or network availability in studies. On the flip side, O2’s various MVNO partners often perform extremely well for customer support and service quality, with surveys frequently ranking them near the top (example).
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The partnership has so far helped to give Tesco Mobile a massive base of more than 5.5 million customers, which makes them the UK’s largest MVNO operator. No doubt Tesco must have negotiated some fairly favourable terms in order to see them commit for such a long period of time, although today’s announcement doesn’t provide much in the way of specifics.
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Lutz Schüler, CEO of Virgin Media O2, said:
“We have enjoyed great success with Tesco Mobile over the past 20 years, as a partner and a network provider, and I have no doubt that will continue over the next decade.
With demand for mobile data greater than ever, we’re continuing to invest heavily in our network to give our customers, and those of other providers who use our connectivity, an even better experience with the fast and reliable mobile services they expect and rely on.”
Jonathan Taylor, CEO at Tesco Mobile, commented:
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“With the combined power of Virgin Media O2 and Tesco we’re an MVNO which packs an almighty punch. We’re incredibly proud of the success we’ve achieved over the last 20 years, we’ve gone from strength to strength and now serve over 5.5 million customers across the UK.
We’re looking forward to unlocking further opportunities with our partners to drive future growth and continue to offer our customers the best value, helpful propositions and award-winning service.”
MVNO operators are usually a bit behind their primary networks when it comes to introducing new network enhancements but, given the significance of today’s announcement, we wouldn’t be at all surprised if Tesco Mobile were much closer to O2 on that in the future (e.g. expect 6G on Tesco Mobile to launch around the same time as it does on O2).
Source: https://tholansonnha.com
Category: mobile
