AO launches mobile network in move beyond electricals

AO founder and chief executive John Roberts said the proposition was designed to avoid the complexity often associated with mobile contracts. "AO Mobile simplifies everything with just one tariff," Roberts said. "AO members get 500GB for only £12 including 15GB of EU roaming every month. No gimmicks, no price rises in the first 12 months, no surprises and a rolling 30-day contract. It is typical AO value. We don't need to tie you in because you'll never want to leave."

The move pits AO against established MVNOs and the big four mobile networks in a UK market where price competition has intensified over the past year. AO's advantage lies in its existing customer base of electricals shoppers, whom it can target with the SIM offer at checkout or through its loyalty programme. Roberts said the pricing is transparent, contracts are flexible, and prices are fixed for the first 12 months.

AO shares traded at 68.4 pence in London on Tuesday, valuing the company at roughly £390 million. The stock has risen about 30% over the past 12 months as the company returned to profitability after a restructuring that cut costs and narrowed its product focus. AO Mobile is not expected to contribute meaningfully to earnings in the current financial year, the company said.