Sainsbury’s is the latest supermarket to enter the operator game through a partnership with the introduction of its Mobile by Sainsbury’s MVNO brand.

The network is a 50/50 joint venture with Vodafone, and will be led by a management team made up of key personnel from both companies.

The idea, according to the announcement, is to draw together Sainsbury’s brand, customer insight and retail distribution with Vodafone’s expertise, technology and network providing mobile services. 

The operator is set to launch later this summer in Sainsburys stores and online, and will tie its offering in with Sainsburys Nectar points loyalty scheme.

Informa responds:

“The MVNO business is hugely profitable for mobile operators,” says Informa principal analyst Dario Talmesio. “Operators’ margins for their MVNO businesses exceed 50 per cent, while their own retail operations barely reach 25% in the UK. The UK Post Office is also set to launch mobile phone services soon by becoming an MVNO, and many other big-name UK retail brands are set to do the same.

“Many businesses are looking at ways of diversifying their service portfolios and increasing stagnating revenues. Retailers can sell mobile telephony services both to expand their portfolios of products and services and to enhance aspects of their core business with mobile functionality. In most global markets, regulatory changes are needed, but consumers are ready for MVNOs. Operators need to embrace rather than obstruct the sector.”