Asda’s pay as you go offer undercuts all competition

ASDA has unveiled a new flat rate UK pricing structure for its pay as you go mobile phone service, which is set to save 45 million UK pay as you go users £2.38billion a year.

Calls are being slashed to 8p a minute and texts to just 4p, making it Britain’s lowest pay as you go operator, it stated. This latest price cut will be a warm welcome to cash strapped consumers battling the credit crunch in the week that other call providers have increased tariffs, the business claimed.

The new rates are 80% cheaper than Virgin Mobile and customers will be charged the same rate whatever time of day they call and to any UK mobile network or landline, with no hidden charges.

Darren Blackhurst, ASDA’s trading director, said: “We are totally committed to giving our customers the lowest prices in Britain every day of the year. We are giving customers the UK’s cheapest mobile call plan that’s simple to understand and a tariff with no hidden extras.”

OFCOM research showed that in 2007, 99 billion minutes of calls were made from the UK’s 74 million mobile connections, a rise of 91% in the number of minutes since 2002. The new calling plan takes effect from the 1st September 2008 and is applicable to both new and existing customers.

According to research by OFCOM, the average UK user spends £17.59 a month on their mobile phone. ASDA claims that an average user switching to ASDA Mobile would save at least 25%, equating to an extra £53 a year in the pocket.