Tesco Mobile launches UK's cheapest mobile phone contract

Ernest Doku, communications expert at uSwitch.com, says: "This deal screams value. Tesco Mobile is a proven success in the ‘no-frills' sector, already selling plenty in the prepay space and adopting a similar tack with its first pay monthly efforts. Offering unlimited texts for £6 is certainly compelling to those looking for savings on their bill, and SIM-only means not having to shell out for a phone, keeping costs low.

"The ease of switching to Tesco Mobile while doing your weekly shop makes this offer even more attractive, as consumers may soon be able to pick-up a contract upgrade in store, while the added bonus of ClubCard points will also appeal to regular Tesco customers and will reinforce their loyalty to the supermarket brand.

"Early feedback from consumers is that Tesco Mobile already offers great value and deals like this will only serve to reinforce that message, helping them pull traffic from the high street retailers. By keeping things simple and just offering consumers a cheaper deal that works with their current handset, and which can be set up on the spot, Tesco mobile is giving the big boys in the mobile market a run for their money."