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Carphone Warehouse in talks with Three over MVNO agreement

Friday, July 18th 2014 by Luke Thompson
Carphone Warehouse in talks with Three over MVNO agreement

Carphone Warehouse could begin offering own-brand mobile phone services in future, according to new reports.

Carphone Warehouse is understood to be in advanced talks with Three over a potential mobile virtual network operator (MVNO) agreement.

This is according to the Financial Times, which reports that the company – soon to be merged with Dixons in a £4 billion transaction – has spoken with several UK operators about the possibility of launching mobile phone services on their networks.

A person with knowledge of the situation described Carphone Warehouse's talks with Three as "progressing", adding that it had also mooted an equivalent MVNO agreement in Ireland.

At present, the retailer has a 'branded reseller' arrangement with Vodafone, under which it has signed up some 700,000 subscribers to date. These customers belong to Vodafone rather than Carphone Warehouse, however.

The launch of an own-brand mobile phone service would support the strategic goals of the retailer's approaching merger, which will create a new high street juggernaut focused on 'internet of things' solutions – products such as household appliances that use cellular and Wi-Fi networks to communicate.

According to a shareholders' prospectus seen by Mobile News this month, the transaction will be completed on 7 August.

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