Retail giant Carphone Warehouse is reportedly in talks with British mobile operator Three to offer its own-branded mobile services network in the UK post completion of its merger with Dixons.
According to the Financial Times report, the retailer is keen in inking a deal with Three that would lead to a mobile virtual network operator (MVNO) arrangement whereby customers will be required to have their mobile contract with Carphone Warehouse. The proposed agreement will be similar to Asda’s arrangement with EE and Tesco Mobile’s with O2.
The report states that Carphone Warehouse has also approached other major mobile operators for the same but talks with Three has reached an advanced stage. The retailer is examining a similar MVNO arrangement in Ireland as well.
However if an agreement could be reached, the retailer would continue with its primary business to sell devices and contracts with other networks which offer smartphones and tablets to the customers through the chain’s stores.
Carphone already has a branded reseller agreement with Vodafone offering low-cost contracts, with around 700,000 service users. The retailer has made it clear that the yet to be named MVNO will not replace its existing MVNO with Vodafone, Talk Mobile, but will run in parallel with it.
The retailer is set to merge with Dixons as part of a £3.7 billion takeover in August. Carphone Warehouse is expected to launch its mobile offering by the end of this year.
