Shoppers who buy a Tesco Mobile could look forward to spending up to 50% less on calls to other mobile networks. Customers will also be charged a flat rate of ten pence for UK text messaging.

In addition Tesco Mobile is offering the only favourite numbers scheme that doesn’t charge a subscription. This will enable phone users to select three UK landline or Tesco Mobile numbers and call them for half price at 10p a minute and 5p a text.

Tesco Mobile users will be able to earn clubcard points on handsets and when they top up call-time at any of the 50,000 outlets across the UK. Callers will earn one point per £2 spent when they top up outside Tesco and 4 points per £2 spent in Tesco stores.

Seventy-three Tesco Extra stores will stock a range of five Tesco Mobile handsets following today’s launch. A further three handsets will be available when the launch is rolled out to a further 550 Tesco stores next month. Online shoppers can also purchase a Tesco Mobile phone at (www.tesco.com/.) In support of the launch of Tesco Mobile is offering customers £25 off any Tesco Mobile handset when they spend £25 or more (excluding the price of the handset) in a single shop at a participating Tesco store before Christmas. This makes them some of the best value on the high street.

Promising to bring simplicity and convenience to the mobile market, Andy Dewhurst, Tesco Mobile CEO, believes a flat rate offers customers a genuine alternative to what is currently being offered by other mobile providers. He said: "Working out what you get charged when you make a call can be very complicated. Customers tell us they are looking for simplicity, convenience and great value.

"Tesco Mobile is offering a simple, easy to understand alternative to what is currently on the market”.

"We have done away with peak and off peak calls and all standard UK calls are charged at 20p a minute, even if you only use the phone for a few minutes a day. With favourite numbers, calls to the home and friends on Tesco Mobile are only 10p a minute."

About Tesco Mobile

Tesco Mobile is a new 50:50 joint venture between Tesco and O2. Created just 16 weeks ago, the new company sells exclusively Tesco Mobile branded services in Tesco stores across the UK using O2’s technology and network. The JV is expected to grow towards two million customers. The new service gives Tesco Mobile customer’s value, simplicity and choice, offering them supermarket style offers and the chance to earn Clubcard points when buying handsets and call time.

Notes to editors:

Tesco Mobile is the latest in a series of moves by Tesco into the telecoms market, and follows from the launch of Tesco Talk (Tesco’s landline service) earlier this month and a bespoke directory enquiries service. Tesco Mobile is offering customers handsets from Nokia, Siemens, Samsung, Motorola and Sendo.

Tesco is market leader in mobile phone airtime sales with a market share of 12% for vouchers and e-top up (Taylor Nelson information). Telecoms is the third retail service offered by Tesco building on the success