Vodafone launches Asda against Tesco

WITH OVER one million people having signed up to Tesco's mobile network since its launch back in 2003 through O2, Vodafone has tied up a similar deal with Asda.

Given that the regulator has just chopped millions off Vodafone's potential earnings by lowering 'termination charges', Vodafone had to do something to bolster its UK earnings.

ASDA is owned by US retailing giant Wal-Mart so its marketing prowess isn't in question. Given that the original MVNO (Mobile Virtual Network Operator) - Virgin Mobile - has almost stalled, it is dubious whether there's room in the market for yet another branded operator. Who's bought into Carphone's Fresh, for example?

As the Asda deal will obviously target low-end consumers, Vodafone has spotted another hole and struck a deal with DSG international - the company behind the PC World stores.

The intention is to target small businesses through PC World. So now you can buy both a mobile phone and a PC from a sales assistant who has had probably little or no proper training. Oh, joy.

In Europe, Vodafone's other big network is in Germany. So in order to keep profits buoyant, the company intends to make cost savings of some 50 million Euros "from cross-selling mobile and broadband services."

Some good news for Vodafone is that India's FIPB (Foreign Investment Promotion Board )has delayed a decision on Vodafone's proposed acquisition of Hutchison Telecom's (HTIL) stake in Hutch Essar whilst it seeks more information. µ

L'INQ
Vodafone