Supermarket slashes PAYG tariff to Britain's lowest flat rate

ASDA has unveiled a new flat rate UK pricing structure for its Pay As You Go mobile phone service, which is set to save 45million UK PAYG users £2.38billion a year. Calls will be slashed to 8p a minute and texts to just 4p, making it Britain's lowest PAYG operator.

This latest price cut will be a warm welcome to cash strapped consumers battling the credit crunch in the week that other call providers have increased tariffs. The new rates are 80% cheaper than Virgin Mobile and customers will be charged the same rate whatever time of day they call and to any UK mobile network or landline, with no hidden charges.

Darren Blackhurst ASDA's Trading Director said, "We are totally committed to giving our customers the lowest prices in Britain every day of the year. We are giving customers the UK's cheapest mobile call plan that's simple to understand and a tariff with no hidden extras".

OFCOM research showed that in 2007, 99 billion minutes of calls were made from the UK's 74 million mobile connections - a rise of 91% in the number of minutes since 2002. The new calling plan takes effect from the 1st September 2008 and is applicable to both new and existing customers.

According to research by OFCOM, the average UK user spends £17.59 a month on their mobile phone. But with ASDA's new pay as you go offering, savvy shoppers with an average usage switching to ASDA Mobile would save at least 25%, equating to an extra £53 a year in their pockets.

If you are an existing ASDA Mobile customer you don't have to do anything to get these price changes, it will be done automatically unlike other networks that make you register for new call plans. Prices for a new PAYG phone at ASDA won't break the bank either with handsets starting at just £19.97. Sim cards are free when bought with a £5 top up.

The latest OFCOM research shows that the average UK landline customer pays £22.56 per month for calls and line rental for 257 minutes (including 10 minutes of international calls). ASDA Mobile customers would be charged for £22.57 for the same usage but you have all the convenience of being mobile with your mobile.

ASDA Mobile is operated by Vodafone UK and covers 99% of Britain's population, and it can be used in over 180 countries around the world. Top-ups can be bought at over 85,000 UK outlets including ASDA Stores. A Scottish call-centre promises top quality customer service.