U.K. supermarket chain Sainsbury’s on Wednesday revealed it will stop offering MVNO services after just two years, after talks with host network Vodafone reportedly broke down.
A message on the Mobile by Sainsbury’s Website said customers have until 15 January 2016 to switch to another provider. Subscribers that wish to retain their mobile number must request a PAC code before this date.
"We’re sorry to let you know that from 15th January 2016, the Mobile by Sainsbury’s phone service will no longer be available," said Sainsbury’s. "We know that changing your service provider can be a hassle. So, we want to make the process as straightforward as possible."
Prepay customers can add credit until 14 November , which is also the deadline for customers on a 30-day rolling contract who want to buy another month’s worth of service. From today, postpaid subscribers can cancel their contract without incurring any termination fees.
Sainsbury’s offered no explanation for the impending closure, but a source cited by Engadget claimed that it is the result of a breakdown in negotiations between the supermarket and host network Vodafone.
Mobile by Sainsbury’s was announced in July 2013, and was the company’s second foray into the mobile virtual network operator market.
In 2001 it became the first major U.K. supermarket chain to offer mobile services with the launch of Sainsbury’s One on host network BT Cellnet, which later became O2. However, it failed to gain significant traction, and in 2003 its modest customer base was switched to O2.
Fierce rival Tesco has enjoyed more success as an MVNO, garnering 4 million subscribers; however, rumours abound that it too is looking for an exit.
Meanwhile, Walmart-owned Asda also operates an MVNO service, while smaller chain Co-Op last year launched an MVNO on EE’s network.
