Tesco Phone Shops to ditch other networks

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Retailer will phase out other networks “over a period of time” and only sell its own Tesco Mobile brand at stores

Tesco has confirmed that its phone shops will stop selling contracts on other networks so it can focus on selling Tesco Mobile products.

The supermarket said that it plans to phase out pay monthly offerings on other networks over a transition period expected to last several months.

Instead, its Phone Shop will only offer connections with its Tesco Mobile MVNO, which runs on O2’s network, although it will still continue sell pre-paid deals from other providers.

Tesco currently sells contracts on Orange, T-Mobile, Three and Tesco Mobile. It also provides pre-paid handsets on those networks as well. It had a supply agreement with Shebang Distribution until 2010. It also has an agreement with Brighstar, but Tesco refused to disclose how the changes will effect its current partnerships.

A Tesco spokesperson said the supermarket was liaising with all current supply partners regarding the changes. The spokesperson added: “While there is no immediate change to our store’s telecoms retailing, we will over a period of time phase out the availability of pay monthly contracts on other mobile brands to focus on our own brand mobile network, Tesco Mobile and other key areas of our Telecoms business.

“We have taken this strategic decision to focus on the areas of our business that appeal most to our customers, where we can provide them with the best possible service and value.”

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