View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
October 14, 2015

Sainsbury’s cuts off Vodafone MVNO deal

News: Customers are advised to use credit before the service ends early next year.

By Alexander Sword

Sainsbury’s is ending its Mobile by Sainsbury’s MVNO from early next year.

The virtual network, running on infrastructure from Vodafone, will no longer be available from 15 January 2016.

Sainsbury’s said in a statement that Pay Monthly customers would be able to use the service until that date, whereas Pay As You Go customers can top up until 14 November. It advised customers to use all credit before that date.

The service reportedly attracted around 150,000 customers since it was launched in July 2013.

Kester Mann, Principal Analyst at CCS Insight, said that the decision could be motivated by a combination of the service not meeting expectations for customer take-up and a general strategic shift by Vodafone.

"There has been relatively low take-up in the 2-3 years Mobile by Sainsbury’s has been around," he said.

"There has been a change of sentiment at Vodafone in its attitude towards MVNOs. They are concerned about investing in their 4G networks and offer this to rivals at discounts. It undermines its business case for investment.

Content from our partners
Unlocking growth through hybrid cloud: 5 key takeaways
How businesses can safeguard themselves on the cyber frontline
How hackers’ tactics are evolving in an increasingly complex landscape

"[Of the other operators], EE seems to be the most vocal about backtracking on MVNOs.

Mann gives examples of a Hungary MVNO venture with Tesco that Vodafone had abandoned, as well as ending its deal with BT Mobile.

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.