Tesco has launched the UK’s cheapest SIM-only deal, a £6-per-month rolling tariff that entitles users to unlimited texts and 100 minutes of free calls.

The deal is said to be aimed at text-happy teenagers, who tend to send messages rather than make voice calls, and who prefer the flexibility of rolling contracts to fixed-term agreements.

“This deal is ideal for a younger market or any text addict out there who doesn’t want to have to fork out a large amount each month but still wants to use their mobile to their hearts content,” said Lance Batchelor, chief executive of Tecso mobile and telecoms divisions.

Tesco’s pricing strategy undercuts many of its key competitors, and will appeal to cash-strapped teenagers, or parents who pay for their phone use. Tesco’s own research found that almost a third of 16- to 24-year-olds spent more than £30 per month on their mobile phone bills, thanks in the most part to the high number of text messages they sent.

Meanwhile, both O2 and Vodafone have confirmed that Apple’s new iPhone 4 handset will be available on a pay-as-you-go basis.

Vodafone is selling the 16GB iPhone 4 for £480, while the 32GB option will set shoppers back £570, with a full year of data access limited to 250MB per month.

O2 will charge £495 for the 16GB model, and £595 for the 32GB version, and will offer users unlimited texts if they top up at least £30 per month, up to 300 free texts if users top up between £10 and £14 per month, and up to 500 free text if they top up between £15 and £29 per month.


News Source:  telegraph.co.uk

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