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Tesco launches cheap internet phone calls

Fri, 20 Jan 2006

Tesco has unveiled an internet phone service that it claims will slash the cost of calling the UK and abroad.

The supermarket giant, which has transformed itself into Britain's biggest retailer by expanding beyond food, claims its package, which will cost just under £20 to get going, is simple enough for anyone to use.

The handset plugs into a PC USB port and works like a normal phone, allowing customers to dial numbers on the keypad and answer incoming calls.

Customers will be able to make UK and international calls on a pay-as-you-go basis, including Australia and Canada for 2p a minute, ringing a mobile phone will cost 10p a minute. It will also be free to call anyone else in the world who has a similar type of phone.

Tesco, which unveiled the system at a superstore in Beckton, south-east London, is one of a growing number of companies like Skype, that have launched services.

The packages are aimed at people who already pay for a broadband line.

Andrew Dewhurst, chief executive of Tesco Telecom said, "Consumers have not yet caught on to internet calling but this is now set to change.

"What they have been looking for is a service that is simple, easy to use, convenient and great value."

The company said customers would be able to choose a non-geographical number when they sign up for the service, which can then be kept for life and taken to all future addresses.

The Tesco internet phones are available in some stores from today and will be sold nationally over the coming months.
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