250,000 customers dial up Tesco mobile service

Supermarket giant Tesco has signed up 250,000 customers to its mobile phone service since it was launched in the UK last September, it announced today.

The retailer, which teamed up with telecoms group O2 to offer the pay-as-you-go deal, said it was on track to become a significant player in the UK mobile phone market.

Initial sales targets were beaten after a successful launch and roll-out of the product, the group said.

Tesco Mobile branded phones, which use O2’s technology and network, are now available at more than 500 stores across the UK and are to be extended to more stores in the coming year.

The deal offers mobile customers a flat rate charge of 20p (30c) per minute on calls to both mobiles and land lines anywhere in the UK.

Calls to customers’ three favourite numbers are charged at 10p (15c) per minute, and shoppers can also earn points on Tesco’s Clubcard reward scheme when they top up their phone.

The group now offers eight different handsets ranging from £49.99 (€74.30) to £180 (€267.50) and is due to trial a further 10 in selected stores.

Tesco Mobile chief executive Andy Dewhurst said he was confident the venture would continue to grow rapidly and attract more customers.

He said Tesco’s stores and its website had proved powerful retail channels for the service.

Tesco Mobile is the latest in a series of moves into the telecoms market by the supermarket and follows the launch of its landline and directory enquiries services.