Vodafone Group CEO has dismissed accusations that the network is a reluctant partner in the MVNO market, adding that virtual networks need to be willing to share cost of investment for services such as 4G.
Vodafone denies Talk Talk's MVNO exit claims
Speaking to Mobile following the networks half year results Vittorio Colao said: ‘There needs to be a willingness from the guy who buys capacity to understand there are new investments and a lot of costs they’ll have to participate in. It’s a bit too easy to say I want 4G but I don’t want to pay more, that’s just the way it works.
‘It’s not something ideological or a strategic position, when I receive these things I pass them on to Nick Reed [Vodafone Group CEO] and say Nick does it make sense or not financially?’
Mobile by Sainsbury’s
Vodafone’s approach to wholesale partners came to attention once again after the network announced that its joint venture MVNO with Sainsbury’s would cease to exist.
TalkTalk has previously suggested that Vodafone were planning to pull out of the MVNO market, a claim fiercely denied by the network.
Vodafone to focus on larger MVNOs
Group CFO Nick Read reiterated this stance, although he emphasised that the network only worked with partners on the ‘right terms’, he said: ‘I think that we have shown across all our markets that we remain committed to wholesale. Clearly, they have to be commercially the right terms and we have to get the right return on the investments that we’re made on our infrastructure and our spectrum.
‘With Sainsbury’s it was more a case of whether it was viable for them and if they were getting enough traction on the business commercially.’
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