O2 renews multi-year MVNO deal with Lycamobile

Operator has been MVNO’s network partner in the UK for the past six years 

O2 has renewed its multi-year wholesale agreement with international MVNO Lycamobile. Details on the length of the new deal have not been disclosed.

The mobile operator has been Lycamobile’s MVNO partner since 2010, and follows deals with year with Sky and TalkTalk, joining others such as Tesco Mobile and GiffGaff to use its network to support their mobile offerings to customers.

O2 digital and new business director David Plumb said: “Having partnered with O2 for six years, Lycamobile understands the benefits of a robust network and brilliant customer experience, which is why it has renewed its relationship with us for a second time. We are committed to supporting MVNOs in the market

Lycamobile, which was founded in 2006, has 14 million customers and employs around 5,000 people. Last year it posted revenues of ‚¬1.2 billion. Earlier this week, it announced it had expanded its business to 20 countries with the launch in Tunisia, running off the Tunise Telecom mobile network.

Lycamobile chairman Subaskaran Allirajah said:  “Having a strong network partner is essential for us to deliver a great offering for our customers and our long-standing relationship with O2 allows us to do just that. We are constantly working on behalf of our customers, to improve the quality and price competitiveness of our service. This has been key to our growth and ultimately our success.”

In May, Lycamobile CEO Christopher Tooley exclusively told Mobile News that its long-term relationwhip with O2 as its MVNO wholesale partner will not be affected shout Hutchison’s proposed £10.25 billion acquisition go through.

“It’s a rolling deal with varioous targets set between the parties,” he said. “Whenever it’s come up for renewal, they have been able to meet our demands in the spirit of negotiation and we haven’t moved away from them, where we have done with our original hosts in other countries.

That’s what being a full MVNO enables you to do. You can start with one, move to another and go back again. Wholesale deals can change over time but for now we are extremely happy with what we get with O2.”