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Tesco Mobile launches UK’s lowest tariff

tescomobile With unlimited text messages

Mobile virtual network operator Tesco mobile has just unveiled a £6 tariff, with 100 minutes of calling and unlimited text messages - aimed squarely at those who SMS rather than talk.

The SIM only monthly contract comes in at the reported lowest cost of any tariff in the UK, where the unlimited text messaging will certainly be an attractive proposition for the younger generation along with the value for money

A phone will of course still be needed, as a SIM card is only provided but there is the added benefit of receiving Tesco Clubcard points - seeing as the tariff is linked to that supermarket store.

Tesco mobile is a MVNO running off the back of Telefónica O2 network in the UK, whilst sharing its entire setup in 50/50 deal since Tesco Mobile first launched mid 2005.

The offer does appear to be very good value for a rolling monthly tariff, where even some of the £15 a month deals at over double the cost of Tesco’s proposition doesn’t offer the same benefits of this new tariff.

Tesco

iPhone comes to Tesco on 14 December

Vaunted price war feels a bit Cold

Tesco make it, and scoop Vodafone by becoming the next UK provider of Apple iPhones. Its mobile arm, an MVNO in partnership with O2 will sell the devices from Monday morning, well in time for Christmas sales.

Offering the only 12-month contract terms that allow customers to get hold of Apple’s flagship phone, it’s very likely to sell well, if not fly off the shelves. But does it really bring anything valuable to consumers?

Promising low, flat rate calls to any UK network, anytime, the pricing follows T-Mobile Flext plans with a value allowance using up 20p per minute and 10p per text. Not so low in supermarket terms with Vodafone-Asda’s MVNO, Asda Mobile iPhone-less but selling at 8p/4p.

Only pennies so far separate O2 and Orange iPhone pricing. When you take base TCO and divide by 18-month contract length, the iPhone 3G 8GB is just under £35 a month and the top spec iPhone 3Gs 16GB just over £44.50 with both operators.

Tesco’s 12-month plans come in with the 3G at £38.50 and the 3Gs 16GB for £53.92.

On prepay, all three companies headline costs are within £1 of each other. War? What is it good for? Fill in the lyric.

I’ve scoured the website and been on the phone to Tesco Mobile (the agents were lovely, well mannered and patient with me), but no news yet on the fair use policy for Tesco’s version of unlimited data and Wi-Fi. I lampooned Orange for their naff 750MB limit so I hope the launch date brings more exciting news. I’ll keep you posted.

My view? There will be a new iPhone out next year anyway to blow these all out of the water. If you just gotta, gotta, gotta have one now, take the iPhone 3G 8GB 12-month plan from Tesco. Make your ‘lifestyle choice’, be part of the brand and save around £160 overall. You’ll be untied earlier when the next version comes out, just be prudent with your call and text allowance.

Perhaps Vodafone will truly shake things up a little when it releases pricing details? What am I thinking?

iPhone at Tesco

Price war on the way?

No pricing details yet, but Tesco Mobile announce they will be stocking the iPhone, they hope in time for Christmas. The joint 50:50 MVNO with O2 has an option to register interest on its web site, and may beat Vodafone at being the next UK provider to have the iPhone available for customers.

There have been months of speculation about an iPhone price war, but no carrier has broken ranks yet. Will Britain’s largest supermarket keep the promise made to the Financial Times “to bring a piece of Tesco value to the iPhone”?

Tesco join the home broadband market

Every little (bit of bandwidth) helps

The British supermarket giant has closed a five-year wholesale deal with Cable and Wireless that will allow them to launch own branded fixed line and broadband bundles. Already promoting many other brands via kiosks and phone shops within its larger stores, Tesco sees an opportunity to bring best in class service and values to the broadband market. There were a million new home broadband connections in 2008, but significant customer dissatisfaction and churn rates of 20% give Tesco the opportunity to make it the number one broadband and home phone choice for its very loyal shoppers.

Like to know more? press release here

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Tesco Mobile launches UK’s lowest tariff