O2 UK using MVNOs to secure their future?

With O2 UK losing exclusivity over the iPhone it will still be getting part of the iPhone business through one of the UK’s most successful MVNOs, supermarket chain Tesco who have stated they intend to offer the iPhone by the end of this year and before Vodafone reports itproportal.

They say that it is quite likely O2 UK will encourage Tesco to sell the iPhone in order to further divide the market, and since Tesco will use O2’s network infrastructure it should mean Tesco will experience a much quicker time to market with the iPhone as there will be less testing and such.

There is also the point that a significant quantity of iPhone users via Tesco will not just boost O2’s own figures but also using its existing network more efficiently. Of course the upcoming merger between Orange and T-Mobile may just force the largest MVNO in the world, Virgin Mobile to seek strategic partners.

O2 is also going further by essentially offering a white label MVNO with GiffGaff and is a concept they may replicate to encourage organisations such as Debenhams and Matalan to offer their own mobile phone network.

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