Tesco Mobile Launches "Unlimited" £30 Mobile Phone Contract

Tesco might only be a small MVNO but the company is showing how far it can go with a fixed rate £30 monthly contract which comes with everything for free, subject to terms and conditions.

Customers can expect unlimited texts, picture messaging, calls and browsing up to a value of £500 which means that each £1 paid by the customer earns around £16.67 worth of credit to be spent on Tesco Mobile.

(Why not read The Ultimate Mobile UK SIM Only Comparison Guide - 58 Offers On 8 Networks!)

In comparison, Vodafone's £10 top up gives you £50 worth of credit while a £40 monthly spending through T-Mobile's Flext contract brings you only £225 worth of credits (although T-Mobile allows you to make international calls AND it comes with unlimited internet).

The deal is a SIM-only one, which means that you won't get any phones with the deal. Punters won't be able to use the SIM card as a modem or to "allow the continuous streaming of audio/video content", file sharing or P2P.

Prospective customers can also claim a discount on their next phone, get half price on calls and texts made to five of your favourite number and for every pound spend on your Tesco mobile gets you three Tesco clubcard points which can then be used to reduce your monthly bill.

Tesco Mobile uses O2's network which means that the Telefonica-owned company should, normally, be able to launch something similar if there is a market for it. Three had in the past signalled its intention to launch an unlimited package should termination rates be abolished or greatly reduced.