Tesco launches mobile service
26-10-2007
by Emmet Ryan

Tesco Ireland is launching a new mobile telephone service with the aim of securing 5 percent of the Irish market over the next four years.

Tesco Mobile, which will be launched on 29 October, will use the 089 prefix and offer just one pricing plan. The prepay service will charge EUR0.20 for calls to any network at any time with all text messages costing EUR0.09.

Tesco is offering the service as a mobile virtual network operator (MVNO), piggybacking on O2's network. Tom Britten, general manager of Tesco Mobile, told ENN that the retail giant aims to have 150,000 customers and 5 percent of the total mobile phone market in Ireland within three to four years.

Special bundles will also be available to offer discounts for customers. The In Touch 10 and In Touch 30 bundles will offer unlimited calls, texts and picture messages to other Tesco Mobile customers. These bundles cover periods of 10 and 30 days respectively and cost EUR4.99 and EUR11.99.

"We've spoken to a lot of our customers about their mobile phone usage. The message from them is that they are paying too much and that they are confused by different tariffs and price plans," said Britten.

Britten explained that Tesco offered a pricing plan that customers would be able to manage. "It's a really simple, easy to understand tariff," he said.

"We are committed to offering the best value mobile phone service. Complicated and expensive pricing plans have confused Irish consumers for long enough. Apart from great value, Tesco Mobile will introduce transparency and simplicity through one easy to understand pricing package with no hidden extras. Customers will also benefit from nationwide coverage on a world class network."

The move into the mobile market is just the latest phase in market diversification for the retailer. Last year the firm released a range of software designed to go head to head with the likes of Microsoft Office.

Tesco Mobile will roll out a range of prepay handsets to 48 Tesco stores on the launch day. Mobile credit top ups will also be available in all 97 Tesco Ireland stores and at 3,000 other locations nationwide. Tesco Clubcard holders will earn extra points for all top ups and get double points when topping up at any Tesco store.