Magazine article Marketing

Supermarkets Extend Battle to Mobile Offers

Magazine article Marketing

Supermarkets Extend Battle to Mobile Offers

Article excerpt

The supermarket price war has spilled over into the mobile phone market as Asda and Tesco trade claims and counter-claims about the price of calls and texts for their pay-as-you-go (PAYG) customers.

Asda, which partners Vodafone, sparked anger in Tesco ranks last week when it halved its charges and claimed to be the cheapest PAYG operator in the UK. It said that at 8p a minute it offered the best option for customers. However, Tesco, which partners O2, argued that its rival has not taken into account the overall value of its own packages, which offer features such as fixed-rate calls and texts to a customer's favourite numbers.

Mobile services from Asda, Tesco, and home-furnishings chain IKEA, which recently partnered T-Mobile, are now among the UK's top five cheapest options for standard PAYG call and text services.

While retailers have been undercutting each other to win a share of Britain's 47m PAYG users, traditional mobile operators are putting up their prices. Vodafone is about to raise its minimum call charge from 15p to 20p. O2, T-Mobile and Orange have also increased tariffs for top-up customers. …

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