Dixons Carphone confirmed on Monday that it has formed a mobile virtual network operator (MVNO) partnership with 3UK and plans to launch services in the spring.
The new network, which builds on the group’s existing mobile broadband relationship with 3UK, “will bring innovative and highly personalised connectivity options for customers to enjoy”, the retailer said.
Few other details were provided, but the Financial Times had reported earlier that as well as selling branded mobile plans, Dixons Carphone would also offer mobile connections to customers buying connected devices such as laptops, tablets and home appliances. Indeed, the opportunity to exploit the “Internet of Things” market of connected devices was one reason given for the merger of Carphone and Dixons last year.
“The announcement of our new network supports our strategic vision to continue to offer customers the widest range of connections, for when they are at home or on-the-go,” said Graham Stapleton, CEO of Carphone Warehouse UK & Ireland.
Lynda Burton, director of wholesale at 3UK, noted that this is its biggest new customer to date. “Our network capability, recognised as best for smartphone customer satisfaction and reliability, is a great platform and we look forward to supporting the UK’s biggest mobile specialist’s MVNO success,” she commented.
The move will also see Vodafone UK take full control of Carphone’s existing MVNO called talkmobile, which has operated on the Vodafone network since its launch in 2007.
“Vodafone is perfectly placed to continue to deliver the great service and value talkmobile customers expect,” Stapleton commented.
Details on the new MVNO branding and propositions h ave yet to be revealed. The move comes as 3UK parent Hutchison Whampoa remains locked in discussions with Telefonica over a potential £10.25 billion deal to acquire O2 in the U.K. and merge it with 3UK, creating the country’s largest mobile operator by subscribers.
The deal is also the latest in a flurry of UK MVNO announcements: for example, Sky announced on Thursday that from 2016 it will begin offering mobile services in the U.K., after establishing an MVNO deal with Telefonica.
Dixons Carphone also sells mobile airtime on behalf of EE, Vodafone and O2 in the UK. The company last week confirmed a multi-year partnership with EE, which followed the confirmation of long-term agreements with Vodafone and O2 at the end of last year.
