While still way behind the big UK networks it’s worth a quick look at the success of Tesco’s MVNO which is now ahead of it’s next biggest rival Virgin Mobile.
Tesco’s mobile network experienced double digit airtime growth in every quarter of 2010 for both it’s Pay as you go and monthly contract base. Over the year Tesco Mobile grow its customer numbers by 25% in 2010, thanks partly to initiatives such as its 12 month contracts on all phones including the iPhone 4 and the expansion of it’s service to add contract customers.
There’s no doubt that if you put enough muscle and marketing behind a brand, then it will sell well, and Tesco has certainly been aggressive in the way it’s approached the market. However it’s not just the marketing that has made Tesco Mobile so successful – ask yourself when was the last time you saw the phrase double digit growth and O2, Orange, T-Mobile etc in the same sentence – it’s also their willingness to innovate.
Tesco Mobile’s 12 month contracts were a breath of fresh air in a market that’s been stale and stagnant for far too long, with even the normal “maverick” providers like Virgin sitting back and providing just more of the same. If the big networks carry on the way they are then next year Tesco will be making even further headway and may even start to give the big boys an exercise in how to run a modern brand.
Additionally Tesco Mobile network has also introduced 200 in-store Tesco Phone Shops, and it has just launched its first standalone Phone Shop in Bristol.
Tesco Phone Shops have also seen growth internationally across the Tesco estate and there are now Phone Shops in Slovakia, Czech Republic, Poland, Hungary, Turkey and South Korea.
Lance Batchelor, Chief Executive Officer of Tesco Mobile and Tesco Telecoms said:
“Tesco Mobile is well on its way to becoming the number one MVNO in the UK. It is continuing to grow its Pay as you go and Pay Monthly base in a declining market space which highlights the network’s appeal to our mobile savvy nation.” Adding, “We have a unique position in the mobile market place because we are able to reward customers in hundreds of ways through Clubcard. We’re focused on giving consumers real and valuable rewards that encourage their loyalty and help them get the best value from their provider.”[ad name=”Google Text half banner advert “]