August 16, 2010

Tesco launches cheapest monthly SIM-only tariff

The UK's cheapest monthly phone contract will provide people with unlimited texts and 100 minutes of free calls for just £6-per-month.

Supermarket giant, Tesco, launched the SIM-only deal this week on a rolling tariff, aiming it squarely at teenagers. They aim to capitalise on the overwhelming preference of teenagers to text rather than make calls.

Until this deal, however, many have been bound to pay-as-you-go phones unless their parents were willing to sign them up for a monthly contract.

Tesco's chief executive for its mobile and telecoms divisions, Lance Batchelor, said, “This deal is ideal for a younger market or any text addict out there who doesn’t want to have to fork out a large amount each month but still wants to use their mobile to their heart's content."

"We've seen a big increase in SIM-only mobile tariffs as savvy spenders hang on to their handsets and shop around for the best tariffs available."

The supermarket's pricing strategy was devised after a careful examination of the texting and calling habits of different age groups. Research by the company discovered that nearly a third of 16- to 24-year-olds spent more than £30 per month on their mobile phone bills, largely due to the high number of text messages they sent.

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Filed Under: Telecoms News

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