20:20 Mobile wins back Tesco contract

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20:20 Mobile has won the supply contract with Tesco Telecom, exited by Shebang last month and worth around £20 million turnover per annum

Distributor 20:20 Mobile has won supply of most handsets and accessories into Tesco in a contract worth around £20 million per year in turnover, Mobile News understands.

20:20 Mobile refused to comment. Tesco was unavailable.

It is understood Tesco will use 20:20 Mobile’s Active 8 online sales tool which links in to all the UK network operators to perform credit checks on the customer. It replaces Shebang’s Sellfone EPOS system.

The Active 8 system is already used with a number of its existing corporate customers including Argos and DSGi, as well as a number of 20:20 Mobile’s dealers.

20:20 Mobile will not sell airtime directly. 20:20 Mobile will also provide  most of Tesco’s hardware fulfilment from its Crewe warehouse, although other distributors supply its certain lines by certain vendors. 20:20 Mobile is certified for all network configuration for handsets.

The deal is significant for 20:20 Mobile, which lost it to Shebang in 2007. Shebang quit the deal on the grounds it was unprofitable.

Meanwhile, 20:20 Mobile is understood to be devising its own white label insurance product for dealers to sell to customers. Dealers claimed the firm is readying the product for launch early next year, for offer as an additional revenue stream opportunity for business partners.

Dealers also claim 20:20 Mobile is in the process of becoming FCC regulated to allow it to sell insurance at retail. It provides fulfilment of insurance claims for O2 through Ace European Group.

20:20 Mobile is understood to be keen to work with small new business and mobile MVNOs to provide insurance fulfilment. One source said: “That market is developing. If it develops a good offer, it could set itself as the go-to firm for MVNO insurance policies and fulfilment.”

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