Vodafone and Gigs have partnered to facilitate tech firms in creating their own MVNOs using Vodafone’s 5G network.
- The collaboration aims to lower the barriers for businesses to launch mobile services without extensive telecom expertise.
- Gigs provides a connectivity API and comprehensive support, making it easier for startups to enter the mobile market.
- This partnership aligns with Vodafone’s recent merger with Three, potentially easing regulatory concerns.
- Gigs anticipates significant recurring revenue from this venture, though financial details remain undisclosed.
Vodafone has entered into a significant partnership with Gigs, a telecom-as-a-service company, to enable technology firms to establish Mobile Virtual Network Operators (MVNOs) using Vodafone’s robust 5G infrastructure. This initiative is designed to eliminate traditional obstacles for businesses entering the mobile service sector, such as extensive telecom knowledge and significant operational overheads.
Gigs offers a range of services through its platform, including a connectivity API, a hosted checkout process, and a multi-currency payment suite. These tools, coupled with a tax engine, subscription and analytics platform, and AI-driven customer service, mean businesses can integrate mobile plans without hiring large teams or dealing with complex compliance issues.
While the financial terms of the deal remain confidential, Gigs has indicated that the partnership is expected to unlock millions in recurring revenue. The company, which was founded in Berlin and now operates in London and San Francisco, received backing from Y Combinator and Google’s venture fund after raising $20 million in a Series A funding round in 2022.
Hermann Frank, co-founder of Gigs, highlighted that this collaboration with Vodafone opens up networks for innovative use cases, enhancing market competition and fostering the development of new mobile services. Frank stated, “Now it’s not about who’s the cheapest any more, it’s about who can bundle an existing service. You can expect to see much more innovation and much more interesting types of offers on the market.”
Moreover, this deal arrives shortly after Vodafone’s merger with Three, which resulted in the largest mobile telecom operator in the UK. This merger received clearance from the competition regulator, with conditions including a joint network plan over the next eight years. The partnership with Gigs may serve to alleviate some regulatory concerns related to the MVNO market that were raised during the merger evaluation.
The Vodafone and Gigs partnership marks a strategic move towards fostering innovation and expanding the mobile service market in the UK.
