Initially, the deal will see the Post providing equipment for Vodafone customers in certain areas of the country including Höfn in south-east Iceland and Borgarnes in western Iceland.

As well as delivering decoders and SIM cards, Iceland Post will also sell Vodafone handsets and 3G starter packs, which include a SIM card, new mobile phone and phone credits.

The telecoms company described the plans as the “first step” in its partnership with Iceland Post.

Vodafone said it was a “sign of changed times” when the Iceland Post, which operated as the Mail and Telephone company (Pósti og Síma) from 1935 until 1998 when its telecoms activities were demerged, is now taking on the role of telephone service provider once again.

“We welcome the scheme, which will improve Vodafone customer service in Borgarnes and Höfn. We are excited about the partnership with the Post and the opportunities that may be created in this first step in the partnership,” said a Vodafone spokesman.

Iceland Post said the partnership with Vodafone “improves Vodafone customer service and creates a new revenue base for the Post, which operates branches throughout the country.”

Source: Post&Parcel/Iceland Post/Vodafone

Tags: Iceland, Iceland Post, Non-postal services, Vodafone