O2 hints at more subsidiary MVNOs

Following the launch of its GiffGaff MVNO last November, O2 has indicated that it could launch more ‘subsidiary' MVNOs if the company lacked the resources to develop the service itself.

According to O2's customer director, Tim Sefton, the strategy taken for MVNOs was based upon customer insight, "but adding any new MVNO subsidiaries would only be taken if absolutely necessary, and that the operator was not going to become fragmented".

GiffGaff, which is lead by ex-O2 broadband chief Mike Fairman, offers its members free calls and texts in exchange for ‘getting involved' by promoting the MVNO.

While the UK has a well developed MVNO market, France has continued to lag behind with MVNOs subscribers remaining at around five per cent of the total market. However, according to figures released by the French telecoms regulator AREP, MVNO customers in Q4/09 rose to nearly six per cent of the overall user base driven by more aggressive marketing tactics.

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