Post Office delivers bad news to Brightstar

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Plans to ditch the Post Office MVNO come less than a year after it launched

Brightstar has suffered a blow after the Post Office announced plans to ditch its MVNO less than a year after it launched.

In January 2015, the hardware distributor struck an exclusive agreement with the Post Office for supply of handsets, SIMs and accessories, with the MVNO launching six months later. However, the Post Office confirmed last week it will axe the MVNO, which runs on EE MVNA Transatel, this August after deciding it was not financially sustainable to the business. It refused to discuss customer numbers.

Difficult decision

“We have decided to conclude this trial as results did not give us sufficient confidence that mobile was going to contribute to our goal of becoming commercially sustainable,” said Post Office CCO Martin George. “This decision demonstrates that we are prepared to make difficult decisions to focus our investment where it can have the biggest benefit.”

SIMs were sold in 213 of the Post Offices 11,500 UK branches. Customers now have three months to find a new provider before they are disconnected. Customers can contact the Post Office to receive their PAC code to retain their number. Credit can also be refunded by contacting customer services.

Brightstar UK and Ireland managing director Jim Michel said: “This ends our agreement with the Post Office. It had a plan to give focus on parts of its business where it could attract customers.

“After they announced the launch of its MVNO, there was a change of direction at leadership level and it has slowly drawn to an end.”

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