Vodafone bails out MVNO Dot Mobile

Vodafone has paid around £1 million to take on the 18,000 customers of student MVNO Dot Mobile, which went into administration last month.

Dot Mobile launched across 90 universities across the UK in 2005, offering bundles of ‘units’ instead of the traditional minutes or texts. It recruited customers by offering up to £80 for successful referrals.

Vodafone, which supplied the airtime for Dot Mobile, agreed with administrators Smith and Williamson that it would pay an estimated £1 million for customer information. It has agreed to migrate customers to Vodafone tariffs of equal or better value, and to pay any outstanding referral bonuses.

The £1 million will pay Dot Mobile creditors, which include handset distributor 20:20.

Allister Manson, associate director of administrator Smith and Williamson, said: “Vodafone has honoured its commitment to provide these services so there should be no disruption to customers.”

Manson added that although Dot Mobile subscriber numbers had been rising, its MVNO agreement with Vodafone was due to expire in May 2009. Vodafone said it would not renew this contract, and Dot Mobile was unsuccessful in finding a replacement network partner.
Vodafone declined to comment except to say it was working with the administrator.