Sainsbury’s And Vodafone Team Up For Mobile Service

Sainsbury’s and Vodafone have teamed up to launch Mobile by Sainsbury’s, a Mobile Virtual Network Operator (MVNO) co-owned by the two companies.

Mobile by Sainsbury’s will launch this summer, promising a range of value-for-money tariffs, customer rewards and Nectar points to encourage customer loyalty.

The partners say that the joint-venture will combine Vodafone’s mobile network and technological expertise with Sainsbury’s brand, customer insight and retail distribution, and the management team of the MVNO will be composed of experienced mobile, retail and marketing experts from both firms. MVNO deals are common in the UK, but it is rare to see the operator participating in the brand to this extent.

Mobile by Sainsbury’s

“We are delighted to announce this partnership. Together with Vodafone, we’ll be able to develop mobile products and services that represent great value for Sainsbury’s customers,” said Justin King, Sainsbury’s CEO.

“Both businesses will capitalise on their respective strengths in this venture to offer an exciting product range to customers,” added Guy Laurence, Vodafone UK CEO.

Sainsbury’s is the second major supermarket in the UK to launch its own mobile network, following in the footsteps of rival retailer Tesco, which operates Tesco Mobile on the O2 network.

There are currently more than 25 MVNO’s in the UK, including Giffgaff (on O2) and Virgin Mobile (on EE), while a number of new services have launched in recent months. LIFE Mobile from Phones 4U was announced in January this year, while WWF Wildlife Mobile and The People’s Operator have also entered the market in the past year.

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