Sainsbury’s takes on Tesco with mobile launch

Sainsbury’s and Vodafone have announced the launch of a new virtual mobile network Mobile by Sainsbury’s in a move to directly rival Tesco and O2’s Tesco Mobile offering.  

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Mobile by Sainsbury’s was announced this morning (1 July) as a 50/50 joint venture and is scheduled to launch this summer offering mobile phone services to consumers running on Vodafone’s network – this is known as an MVNO.  

The new MVNO’s management team will be drawn from both the retailer and mobile operator’s existing personnel with marketing highlighted as a key area of focus. No further details about the new management team have officially been released at present. 

Sainsbury’s claims the new offering will bring “value-for-money mobile products” with a focus on “simplicity” and reducing the “stressful experience” of deciding which tariff and devices to opt for. 

Justin King, Sainsbury’s CEO says: “Together with Vodafone, we’ll be able to develop mobile products and services that represent great value for Sainsbury’s customers.”

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

The pairing brings both Sainsbury’s and Vodafone into direct competition with both O2 and Tesco whose MVNO Tesco Mobile dates back almost a decade with an emphasis on offering basic, value-for-money mobile services.  

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