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Tesco Mobile first to offer customers 18-month SIM-only contracts

Tesco Mobile has become the first network operator in the country to offer customers a range of 18-month SIM-only tariffs (opens in new tab).

The deals start from just £10 a month (opens in new tab) and all come with 4G connectivity and Capped Contracts to help avoid unexpectedly large phone bills.

Read more: Tesco finally ditches Blinkbox after significant losses

The longest SIM-only contract usually offered by mobile operators is 12 months, but Tesco’s chief marketing officer Simon Groves believes that customers are willing to commit to longer deals if they are offered value for money.

“These data rich deals are available for anyone who is in the market for making savvy mobile choices and are happy with their handset,” he explained. “Our customers told us that they are happy to commit to a deal for a longer period of time if it means they don’t have to worry about looking around for the best deal.”

Mr Groves added that customers opting for a SIM-only deal could save themselves hundreds of pounds a year, as their contract will not include the cost of a new handset.

The two 18-month tariffs being introduced by the retailer are £10 a month for 1,000 minutes, 5,000 texts and 1GB of data and £12.50 a month for 1,500 minutes, 5,000 texts and 2GB of data.

Anyone signing up for the new contracts will also automatically have access to Tesco Mobile’s Anytime Upgrade package. This allows them to upgrade their handset at any point during the 18 month period, without having to pay the remaining time on their contract or any termination fees.

Read more: Tesco rolls out superfast Wi-Fi to hundreds of stores

Although Tesco Mobile has 4 million customers and yearly profit figures in excess of £100 million, it may not be much help to its parent company for much longer. Tesco, which last month announced losses of £6.4 billion, is reportedly set to sell its 50 per cent stake in Tesco Mobile in order to reduce company debt.

Barclay has been writing about technology for a decade, starting out as a freelancer with IT Pro Portal covering everything from London’s start-up scene to comparisons of the best cloud storage services.  After that, he spent some time as the managing editor of an online outlet focusing on cloud computing, furthering his interest in virtualization, Big Data, and the Internet of Things.