UK retail giant Tesco will reportedly launch a mobile virtual network operation (MVNO) in Ireland next year on the O2 network. The retailer already operates an MVNO in the UK with O2.

The Irish regulator, the Commission for Communications Regulation (ComReg), has been trying to widen the Irish mobile market using the MVNO mechanism for some time (click) but has so far been thwarted by the opposition of dominant players Vodafone and O2 and a decision by Ireland ’s Electronic Communications Appeals Panel (ECAP) to annul the significant market power (SMP) designation on  mobile origination (click). Quite what has led to a change of heart on O2’s part isn’t being spelled out, although it’s probably something to do with bowing to the inevitable and getting its retaliation in first.

Here’s part of what Ovum senior analyst Carrie Pawsey makes of the deal on her company’s EuroView Daily Comment service. “This MVNO deal has been hotly tipped for quite some time and it makes sense for both O2 and Tesco to build on the success of the UK operation,” she writes. “The MVNO announcement will also give hope to the many players that have expressed their interest in entering the Irish market since ComReg’s original announcement. These include Minutebuyer (a fixed reseller planning to target the business market), Perlico - a fixed altnet, BT Ireland, Dome Telecom, Carphone Warehouse and Clever Communications.”

“More interestingly,” adds Pawsy “T-Mobile has also expressed its interest in entering the Irish market as an MVNO. This is something to watch out for in 2007, we expect to see more mobile operators investigating the MVNO opportunity in markets where they do not currently operate.”
John Williamson