Dixons Carphone will use its newly inked MVNO deal with Three to boost its drive into the Internet of Things (IoT) market.
The MVNO partnership, which Mobile revealed last year, will launch later this year and will offer IoT contracts that customers can take out when buying connected devices such as laptops, TVs and wearables. The IoT contracts will be supported by a software platform currently in development.
The MVNO, which is yet to be named, will also sell flexible mobile tariffs to Dixons Carphone customers.
Graham Stapleton, Carphone Warehouse UK and Ireland CEO, said this week that the MVNO will be different from other offerings on the market, with a more personalised service for mobile customers, which will let them tailor their price, minutes and data.
He said the company also wanted to serve customers buying connected products such as TVs, laptops and desktop computers.
Analysts said the strategy could drive sales of connected devices. Phil Kendall, director of global wireless at Strategy Analytics, said: ‘Dixons Carphone wants to get into the connected world space, so offering to bundle in the cost of connectivity with the cost of the device makes for a compelling offer for customers.’
However, Eddie Murphy, telecoms analyst and MD of Priory Consulting, said the MVNO’s IoT deals must offer excellent connectivity on devices if they are to be a successful.
He said: ‘The higher the frequency, the lower the in-building penetration, so unless the MVNO is going to provide 800MHz connectivity with these tariffs, the chances are the connectivity will be poor.’
He added: ‘One alternative Dixons Carphone might be considering is offering customers an external aerial and Wi-Fi connectivity with one Sim for all connected devices.’