20:20’s prepay distribution deal with Vodafone is to end in January, Mobile News understands.
20:20 is understood to have been served with 30 days’ notice on the prepay distribution contract as Vodafone looks to increase direct supply of prepay in the New Year. 20:20 is meanwhile looking to build on its existing relationships with O2, Orange, T-Mobile and Virgin Media.
Sources claim the loss of the distribution deal is not “significant” to 20:20 and represents only a small part of its prepay handset distribution business. 20:20 retains distribution of Vodafone-branded BlackBerry handsets in the UK, and has a 50/50 joint venture with Vodafone in Ireland.
20:20 last month retained major distribution contracts for handsets, website management and fulfilments deals with supermarkets Morissons, Sainsbury’s and Asda, as well as BT.
It has also landed a deal with Halfords in June, to supply prepay handsets and accessories to its top 100 stores and continues to supply to retailers Superdrug and Amazon.
Both parties declined to comment on the matter.
An industry source said: “The Vodafone deal is not significant to 20:20 and it is still doing good business with other network partners.
“Networks and distributors are aligning themselves more. They will increasingly going choose where there alliances lie and where they focus their energy.”
Vodafone continues to work closely with 20:20 rival Data Select, meanwhile.