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Ikea Sets Up Mobile Shop in Britain

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Source: Reuters

British consumers will soon be able to select a mobile package branded and marketed through a new mobile virtual network operator, or MVNO .

The latest player in the MVNO game isn't a stranger to consumers, however. It should be recognizable to shoppers and home decorators the world over: Ikea.

MVNOs don't own a physical cellular network. Rather, they rent and resell spectrum from wireless operators as voice and data services. The giant Swedish housewares and furniture company plans to offer pay-as-you-go mobile service beginning at just under $20 to members of its loyalty program.

Some 9,500 Ikea staff in Great Britain will be issued phones with about $10 is prepaid minutes. Ikea's mobile plan exists in partnership with T-Mobile.

The wholesale nature of the MVNOs is meant to bring prices down for customers, while building brand recognition and loyalty for the companies sponsoring them. Bulk buying makes them a good deal for the provider and the sponsor.

And, as they take off, you may find yourself a good deal on a short-term prepaid card next time.

This article first appeared on PDAStreet.com