Post Office Launches Mobile Network

The Post Office has plans to deliver a lot more than just letters and parcels later this year when it enters the UK’s ultra-competitive mobile phone market for the first time.

This autumn the now privately-owned institution is launching as a mobile virtual network operator [MVNO] on EE’s nationwide network and it hopes to challenge the incumbents with a service that offers consumers better value.

“Our research tells us that people are seeking greater value, with one in three of those surveyed saying they intended to move away from one of the mainstream providers for their next service,” said Martin George, chief commercial officer at Post Office. “We believe we are in an ideal position to offer a genuine alternative with over a third [36 per cent] also saying they would consider us as their mobile provider.”

Initially the service will be launched in 50 Post Office branches across the country as well as online and over the phone before it is eventually rolled out to all 11,500 branches.

As an MVNO, the Post Office will compete against the likes of Tesco, Sainsburys, TalkTalk and other low cost providers and as such it needs to tailor an offering that is particularly attractive to customers.

EE already has a number of MVNOs on its books including Virgin Mobile and Asda Mobile plus it managed to wrest away the lucrative BT MVNO contract from Vodafone earlier on this year.

Joining the mobile phone market adds to its presence in the home phone and broadband sector that has already seen almost 500,000 customers sign up since its launch some time ago.

Image Credit: Flickr (Graham Richardson)