Telefónica O2 UK and Tesco Mobile joint-venture

Tesco Mobile is a 50/50, joint venture, MVNO agreement (mobile virtual network operator) between Telefónica O2 UK and Tesco plc. It offers customers value, simplicity and choice, along with supermarket style offers and the chance to earn Clubcard points when buying handsets and call time.
This successful joint venture (whose customers are not included in Telefónica O2 UK’s base) provides O2 with efficient access to a significant market segment that has not been very well served by mobile operators in the past. Tesco Mobile addresses sections of the family market, not currently targeted by O2, through Tesco's nationwide network of supermarkets and smaller "Metro" shops.
The introduction in July 2005 of new pricing initiatives such as a ‘Value’ tariff and reduced international calling rates, as well as, an expanded retail presence continues to drive customer growth. Tesco Mobile’s success is marked by the fact that, in December 2005, only 6 months after launch it had already achieved a pre-pay base of 1 million subscribers. By December 2008, the number of subscribers had grown to more than 1.7 million.
Value tariffs are available for customers on ‘Pay as you go’ and ‘Pay monthly’ tariffs. Simply priced, the tariffs let mobile users call for just 10p a minute and text for just 5p; allowing access to low-cost texts without the need to pay upfront for a bundle.
In 2007, following on from the success in the UK, Telefónica O2 Ireland and Tesco Ireland launched the first MVNO, in the Irish market-place.
Visit Tesco Mobile.