TESCO is speeding up the expansion of its mobile-phone business, with a wider range of handsets and a new tariff that will cut the price of calls.
Tesco Mobile, a joint venture with O2, is said to have gained more than 300,000 customers since its launch last September. Andy Dewhurst, its chief executive, said the business was ready to move up a gear. The supermarkets group will double the space for promoting Tesco Mobile in many stores.
The new tariff will allow customers to call three numbers on any network for half price. Standard charges are 20p a minute to other mobiles and 10p a text.
Tesco has added more fashionable handsets to its range, including the Sony Ericsson T610 and Motorola V220. It now has 19 different handsets.
Dewhurst said Tesco was largely unaffected by the fierce competition for new customers, which has been led by 3, the video mobile company that has been aggressively promoting its cheap voice calls and picked up more than 270,000 last month.
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“I don’t think 3 has had a major impact, to be honest,” said Dewhurst. “It’s quite a different proposition. We are targeting Tesco heartland customers, Tesco families. What Tesco customers are looking for is simplicity and value.”
Tesco Mobile is aiming to have 2m customers within the next five years.