en.Wedoany.com Reported - Tesco Mobile, one of the UK's largest mobile virtual network operators, is considering following Giffgaff's model by launching full-fibre broadband packages to expand its existing business. The company has nearly 6 million customers and operates on O2's (part of Virgin Media) national mobile network.
According to the Financial Times, Tesco Mobile has held preliminary talks about offering home broadband services via VMO2 and nexfibre's full-fibre (FTTP) network. These two networks share some parent companies and may only cover XGS-PON-based full-fibre areas, similar to Giffgaff's arrangement. Tesco previously ventured into home broadband but sold the business to TalkTalk in 2015 due to financial difficulties, when it had 75,000 fixed-line broadband users (including 20,000 telephone users).
Giffgaff, which also uses the O2 network, entering the broadband market may prompt Tesco Mobile to follow suit and compete. The operator has significant potential if it can leverage Tesco Clubcard discounts and cross-sell broadband with mobile services, given its sizable mobile customer base with a good quality reputation. However, Tesco Mobile is not part of the same group and may not enjoy the same level of preferential treatment as Giffgaff.
Virgin Media (O2) and nexfibre are currently trying to attract non-group wholesale partners (such as Vodafone) for their consumer fixed-line platform, which helps present a better competitive image to the Competition and Markets Authority (CMA) and supports its £2 billion acquisition of full-fibre alternative network operator Netomnia. A Tesco Mobile spokesperson said the company regularly communicates with potential partners about various opportunities as part of normal business operations, but added that there are currently no plans to enter the broadband market. The company has not made a final decision on whether to re-enter the broadband market.
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