Mobile Phone Reviews
 
 
Tesco to launch own-brand mobile phone

Thu, 23 Mar 2006

Tesco, Britain’s biggest retailer is preparing to shake up the mobile market with the launch of an own-brand contract phone in response to calls for simpler products from customers.

Andy Dewhurst, head of Tesco’s telecoms division, said that the group was "working on" plans for a Tesco-branded contract mobile.

The move, which is expected to result in a Tesco service run over the O2 network, will put the retailer against established operators such as Vodafone, Orange and T-Mobile and also put pressure on initiatives such as easyGroup’s easyMobile venture.

Tesco’s retail distribution network for a contract mobile is the equal of established high street specialists such as Carphone Warehouse and Phones4U.

Tesco, with its high-profile brand name and network of stores, has a big advantage over other new entrants.

Tesco head of telecoms Andy Dewhurst is reported as saying, "Our customers say they don’t feel comfortable in traditional phone shops. Giving them a simplified contract range will be the breath of fresh air that pay-monthly mobile users have been looking for."

Tesco already offers pay-as-you go mobiles and has a customer base of one million. It also offers a fixed line service but industry experts believe this operation is struggling to pick up customers.

Mr Dewhurst said, "My strategy is not to go out and get customers that never make you any money. We are completely committed to the fixed line business."
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