Are Tesco going to flog their mobile wing?

tesco As Tesco aim to streamline so they can claw back all that money they lost, one of the surprising things that could be getting sold-off is Tesco Mobile.

These are desperate times for the supermarket giant as they are under huge pressure to reduce their estimated £21.7 billion debt. They're going to have to scale down the way they operate to recoup what they've lost, as well as try and make ground on Aldi and Lidl who have been chomping away at their market share.

Tesco have already sold their broadband arm and Blinkbox streaming service to TalkTalk. With that, it looks likely that TalkTalk might be willing to buy Tesco Mobile too. It makes sense as Tesco's MVNO is a partnership with O2, and TalkTalk just so happen to be moving their MVNO from Vodafone to the O2 network.

O2 could also be in with a shout, but you imagine that they're too busy dealing with the whole Being Sold To Three thing. The rumoured price for that is somewhere in the region of £10.25 billion.

When Tesco Mobile launched in 2003, it was a decent and cheap alternative to the big guns, but since then, it has lost its way as EE, Vodafone, Three et al. With Sky and Carphone Warehouse moving into mobiles and BT making a comeback, it might be a good time for Tesco to sell their mobile business.

What do you think?

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