The Post Office is to launch a mobile virtual network in autumn 2014 using EE's network infrastructure, in competition with similar services offered by Tesco, Sainsbury's, Asda and the Co-Op.
The network will initially launch in 50 Post Office branches before being rolled out nationally. The Post Office already has an established home-phone and broadband service with almost 500,000 customers, so the move into the mobile market is not surprising, and has been rumoured for a while.
The launch of the network follows a £640m investment by the Government last year to transform the Post Office. 2,200 branches have already been revamped, with 60,000 extra opening hours created for customers.
"Our network of over 11,500 branches combined with our online, and call centre presence, gives us the perfect platform to become one of the most credible providers of mobile services in the market," said Martin George, chief commercial officer at the Post Office. "Our research tells us that people are seeking greater value, with one in three of those surveyed saying they intended to move away from one of the mainstream providers for their next service.
"We believe we are in an ideal position to offer a genuine alternative with over a third also saying they would consider us as their mobile provider. This is a fantastic vote of confidence in the Post Office brand – voted one of the most trusted brands in the UK."