High street retailer Carphone Warehouse will try reportedly its hand at selling own-branded mobile services following the completion of its merger with Dixons.

The Financial Teams brings word the new 'Carphones Dixons' brand is in advanced talks with Three to piggyback on its network and sell its own contracts for smartphones, tablets and other connected goods.

Currently, Carphone Warehouse offers low-cost contracts through Vodafone, an arrangment the FT claims will continue, but those customers essentially belong to the network.


Under the proposed agreement with Three Carphone could become a mobile virtual network operator (MVNO), just like Tesco Mobile's arrangement with O2 and Asda's with EE.

Insurance

The FT says Carphone has put out feelers to all of the major networks, but talks with Three are furthest along.

If an agreement couldn't be reached with, the retailer would continue to sell devices and contracts with other networks, if permitted.

EE is currently in the process of deciding whether it wants to utilise third-party retailers anymore, so setting up a MVNO could be a good insurance policy against other networks walking away.

Via Engadget