Asda takes on Tesco as mobile network operator

by James Quilter, Marketing 21-Mar-07

Asda is planning to challenge Tesco with the launch of Asda Mobile, a mobile virtual network operator (MVNO) set up in conjunction with Vodafone.

The supermarket plans to launch the service next month. Insiders say
Asda Mobile will be available in dedicated areas in its stores that will
be staffed by experts.

The supermarket is in the final stages of appointing agencies to handle

the online and in-store elements of the launch.

Asda marketing director Rick Bendel, who has said he wants the
supermarket to be seen as a 'common-sense retailer', hinted that it
would enter the mobile market when he criticised the lack of
transparency among retailers about their offers last month. He said it
was up to Asda to 'make sense of complicated issues like mobile
phones'.

Tesco Mobile was launched in conjunction with O2 in 2003 and has signed
up about 1m consumers. The supermarket's broadband and home-phone
services have a combined total of about 1.5m subscribers.

Asda refused to comment on the launch of the service.