The MVNO service run by the UK’s Post Office is to shut down in August after an unsuccessful trial period.
The service, which launched in June 2015, ran on EE’s network, and was seen as a play to compete with UK retail giants like Tesco and Sainsbury’s, which have similar offerings.
In a statement, the group announced it will stop selling to new mobile customers with immediate effect, while existing customers have three months to find a new provider before the service is withdrawn.
Martin George, chief commercial officer at the Post Office, said the trial results “did not give us sufficient confidence that mobile was going to contribute to our goal of becoming commercially sustainable”.
When the service launched last year, George hailed the move as a “significant milestone”.
The group was expected to use its 11,500 branches in the UK and its existing online platform to expand its mobile business with the venture.
Along with the UK’s four mobile operators – EE, Three, O2 and Vodafone – there are several MVNO services which use networks to provide services from networks owned by the quartet.
According to GSMA Intelligence, there are around 90 live MVNOs in the UK at the moment.