Tesco internet phone is:

• Both easy to set up and simple to use
• A low-cost alternative to traditional fixed line telephones
• The must-have technology for 2006

All that is set to change with the launch of Tesco’s new Internet phone. Offering both ease of use and great value calls, it’s expected to make this technology appealing to a mass market for the first time ever and make 2006 the year of the internet phone.

Calls from Tesco’s new Internet phone both within the UK and to popular international destinations such as the US, Canada and Australia are priced at just 2p a minute, while calls to UK mobiles cost only 10p a minute. Calls to other internet phone users are absolutely free wherever they are in the world.

Tesco internet phones are as easy to use as traditional fixed line phones and feature the same call quality, plus they offer households the option of a second phone line without the added cost and hassle of line rental and installation.

And there’s good news for the millions of families who move house each year in the UK, because internet phone users can choose a unique, non-geographical number when they sign up to the service. This number can then be kept for life and taken to all future addresses.

Using Tesco’s Internet phone pack could not be easier. Users install the software, register their details and select their phone number using the supplied installation guide. Then they simply plug the handset into the USB socket on the PC and calls can begin. Easy!

What’s more, Tesco internet phone is a pay as you go service, so users can monitor exactly how much they’re spending on calls.

Andy Dewhurst, chief executive officer of Tesco telecoms says:

"The way we communicate is rapidly changing and we believe that this is just the beginning of the internet phone revolution.

"Our research showed that while many people are aware of internet phone services, most have been put off by complicated technology and confusing tariffs and installation.

"Tesco’s simple and convenient new service will finally make this amazing technology accessible to millions of households throughout the UK and allow everyone to benefit from free or very low-cost internet calls."

Nell McAndrew is already a huge fan: "I come from a close-knit family and because we all live quite far apart, it’s really important for me to stay in touch over the phone. Plus I’m a big talker, so Tesco’s new Internet phone will mean much cheaper phone bills, which I’m sure my husband will appreciate!

"Usually I’m a bit of a technophobe, but this new service is perfect for me because it’s so straightforward and easy to use."

Tesco Internet phone packs are now available to purchase in-store for just £19.97. Each Tesco Internet phone pack contains a phone handset, an installation CD, an installation guide and £5 of free airtime.

Notes to editors:

Tesco Internet Phone international landline rate comparison*

		Australia	US	Canada	France
BT Together Option 1	Peak	24p	14.99p	16p	18.5p
	Off peak	9p	9p	9p	9p
Tesco Internet Phone	All times	2p	2p	2p	2p

*Prices checked online and correct as at 19 January 2006

Prices checked online and correct as at 19 January 2006

For more information or to obtain visuals, please contact:

Emilie Lien at Lexis PR, 020 7908 6421 / 07956 106 987 / elien@lexispr.com

Joanna Pritchard at Lexis PR, 020 7908 6440 / 0771 252 8558 / jpritchard@lexispr.com

Joanna Kinloch at Tesco Telecoms, 07770 435 943 / joanna.kinloch@tescomobile.com