Ethnic MVNO Lycamobile has announced a network partnership with O2 for a new pay as you go Sim brand, due to be launched in Q4 this year.
The move does not affect Lyca’s current relationship with Orange, which it has an agreement with for the MVNO’s existing 1.2 million customers.
An Orange spokesman said: ‘Orange continues to work with Lycamobile to not only provide network services for their customer base, but also grow the services and opportunities offered through the relationship.
‘We have long understood Lyca's desire to run a multiple operator strategy and welcome the new network to the Lycamobile partnership.’
However, it could see Orange looking to other MVNO agreements other than its existing deal with Lyca.
LycamobileCEO, Milind Kangle, said: ‘We are delighted to announce the signing of this deal with O2. They have demonstrated a dedicated approach to this partnership and our deal will accelerate the success that the Lycamobile brand has already had in the UK.
‘Thanks to the technical architecture Lycamobile has developed, we will be providing an enhanced low-cost, high-quality mobile service to our UK customers.’
O2 Business Sales Director, Ben Dowd, said: ‘This deal with Lycamobile offers us an exciting opportunity to work in a key growth market with the UK’s leading International MVNO partner.’