Tesco Mobile to introduce contract call plans

UK MVNO Tesco Mobile is preparing to launch its first post-paid contract call plans, company chief Andy Dewhurst told The Times. In what would appear to be a damning verdict on the limited growth potential of pre-pay services, Tesco also plans to start selling post-paid plans of rival mobile operators in some of its stores for the first time.

The MVNO, a 50/50 venture between retail giant Tesco and network operator O2 UK, was launched in late September 2003, offering a flat rate pre-pay tariff for voice calls and text messages, and the chance to earn loyalty points from the retailer when buying handsets and air time. Tesco Mobile is available in both handset and SIM-only form, online or in Tesco stores across the UK. By the end of 2005 Tesco Mobile was available in over 500 stores, and the retailer had just signed up its millionth customer.