ASDA to launch MVNO in the UK with Vodafone

by: admin Monday, January 8th, 2007

Rating: shopping trolley heaven

Asda and Vodafone will launch mobile phone service in the UK in April.

Asda is the UK’s number two supermarket and its wants to compete head to head with Tesco - which is currently the UK’s number one supermarket that also boasts a mobile phone service JV with O2.

Vodafone has been rumoured to be launching several MVNO or JV style services in the UK such as Extreme Mobile - but nothing has launched yet. If this succeeds it would bolster Vodafone’s appeal in the consumer market. Vodafone devices can already be purchased from Asda - but Asda branded devices might favour first time buyers, OAP’s and mothers.

Saying this any sort of MVNO is on dangerous grounds in the UK market where prices are already low and competition fierce. Even Tesco is not hugely successful. Tesco boasts over one million customers but at the same time over 22 million people visit a Tesco store each week. This means that its actually underperforming in mobile.

We hope Asda Mobile launches - but we will not hold our breath based on Vodafone’s track record.