Homeplus, the nation’s No. 2 supermarket chain, said Wednesday that it is considering entering the network services market as a mobile virtual network operator or MVNO.

The company, owned by U.K. retailer giant Tesco, said it has started negotiations to borrow networks from telecom carriers at wholesale prices so that they can offer mobile services at cheaper rates.

“We are gauging contract conditions with SK Telecom, KT and LG Uplus,” a Homeplus official said. “If the contract is finalized, we plan to secure subscribers through our supermarket chain stores nationwide.”

It has long been speculated that Homeplus could expand into the MVNO business as its parent company, Tesco, has already been operating Tesco Mobile, a virtual operator running on the U.K. service provider O2.

Even though the company declined to reveal more specific plans, industry sources said that Homeplus would set up a joint venture for equity investments and rent store space to it for sales.

Sources expected that Homeplus’ new entry would have a business impact on conventional telecom operators as the company owns a nationwide distribution channel that includes 125 Homeplus outlets and 249 “super supermarkets.”

By Lee Ji-yoon (jylee@heraldcorp.com)