In a move that signals enduring synergy, Virgin Media O2 (VMO2) and Tesco have declared a ten-year extension of their partnership encompassing the Tesco Mobile enterprise. This collaboration between the two giants was established twenty-one years ago and has culminated in Tesco Mobile’s growth as the most prominent mobile virtual network operator (MNVO) in the United Kingdom.
At present, Tesco Mobile boasts of a robust consumer base with over 5.5 million customers. The year 2022 witnessed a commendable 9.4% hike in sales driving the revenues to a handsome £970 million. It is worth noting that Tesco Mobile, as an MNVO, does not hold any spectrum license of its own. Instead, it capitalizes on VMO2’s comprehensive mobile network to offer mobile services.
In a press release, VMO2 stated that its 4G network coverage spans 99% of the population. While addressing the same, Lutz Schüler, CEO of VMO2, stated, “With demand for mobile data greater than ever, we’re continuing to invest heavily in our network to give our customers, and those of other providers who use our connectivity, an even better experience with the fast and reliable mobile services they expect and rely on.”
Echoing similar enthusiasm, Tesco CEO Jonathan Taylor said, “This renewal will ensure that our customers can continue to benefit from excellent connectivity across the UK, while enjoying all the benefits of supermarket mobile, including exclusive deals with Clubcard Prices.”
It is a significant advancement, particularly since in 2015 Tesco considered selling its stake in the mobile unit with the aim to reduce its £22 billion debt. Thankfully, the plan did not see the daylight and today, the joint venture is healthier than ever.
