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Post Office to close pay as you go mobile service

Thursday, May 26th 2016 by Phil Wilkinson-Jones

The Post Office is ending its pay as you go mobile service – less than a year after it was launched.

Post Office Mobile, which operates on the EE network, has stopped selling to new customers.

It is giving existing users three months to find a new provider before the service is withdrawn in August.

The SIM-only offering had been available on the Post Office website and in 11,600 branches around the country after launching in June last year.

Customers with remaining credit will be eligible for a refund.

Martin George, chief commercial officer for the Post Office, said: “We have decided to conclude this trial as results did not give us sufficient confidence that mobile was going to contribute to our goal of becoming commercially sustainable.

“This decision demonstrates that we are prepared to make difficult decisions to focus our investment where it can have the biggest benefit, such as in continuing to improve our retail network, digital capability and our product portfolio.

“We apologise for any inconvenience this causes our ‘Pay As You Go’ mobile customers and our focus is now on letting them know how to switch to another supplier, keep their existing number and receive any refunds they are entitled to.”

The Post Office said it will continue to invest in its existing broadband and home phone service, and is planning to launch a fibre broadband service later this year.

'A hassle'

In October last year, Sainsbury’s announced it was pulling out of the MVNO (mobile virtual network operator) market.

Mobile by Sainsbury’s, which was launched in July 2013 and used Vodafone’s network, offered a range of Pay As You Go and Pay Monthly SIM Only deals.

A statement on the company’s website told customers they had until 15 January 2016 to use any remaining credit and that the service would stop working on that date.

“We’ve loved having you as a customer, and we know that changing your service provider can be a hassle,” it told customers.

“So, we want to make the process as straightforward as possible. We’re telling you now so that you have plenty of time to decide what to do.”

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