Sainsbury’s and Vodafone to can mobile joint venture

Sainsbury’s and Vodafone to can mobile joint venture

Sainsbury’s and Vodafone have revealed that they will end their joint venture; Mobile by Sainsbury’s.

 The supermarket and the mobile network have worked together on the 50:50 MVNO since the summer of 2013 with the aim of challenging the likes of Tesco Mobile for the low cost consumer segment.

 However, it appears that two years on the performance of the JV has failed to match expectations and the service will no longer be available after 15th January 2016.

 Despite the JV’s closure Sainsbury’s has stressed to Mobile that the brand is not abandoning the market and remains ‘serious about mobile’.

 A spokesperson from Vodafone said: ‘We regret that Mobile by Sainsbury’s - a joint venture between Sainsbury’s and Vodafone UK - offering a mobile phone service to Sainsbury’s customers is ending and the service will no longer be available from 15 January 2016. Mobile by Sainsbury’s priority now is to help its customers and make sure they are inconvenienced as little as possible.’

 Sainsbury’s spokesperson said: ‘We regret that Mobile by Sainsbury’s, a joint venture with Vodafone offering a mobile phone service to Sainsbury’s customers, is ending, and the service will no longer be available from 15 January 2016. 

'Our priority now is to help our customers and make sure they are inconvenienced as little as possible. We will continue to sell mobile phones and accessories in our 38 in-store phone shops and to sell handsets in over 300 of our stores.’

The announcement follows TalkTalk's claims that it had information that Vodafone had served notice to terminate the MVNO agreement it had in place with Sainsbury’s. Vodafone strongly refutes these claims.

 

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