Tesco Mobile announces commitment to fixed contract charges as competitors reap £217m* of customers’ money in hidden tariff increases

Today, Tesco Mobile has announced a promise to fix customers’ contract tariff costs.

Its Tariff Promise is a commitment never to raise its customers’ core tariff prices mid-contract, the first move of its kind amongst network providers in the UK.

This makes it the only provider to pledge that the tariff price a customer signs-up to at the start of a contract, will be the same price they pay for the entire contract term at no additional cost to the customer.

Tesco Mobile has never raised its Pay-Monthly tariff costs mid-contract and is dedicated to continuing this.

Recent research has revealed that 70% of consumers who have taken out a mobile contract did not know networks could increase prices during the contract period.

The Tesco Mobile research* found additional unknown tariff costs were a major bug bear for customers.

One in four (25%) cite rising tariff prices mid-contract as a major irritant, with slow mobile internet (27%) and complicated tariffs (26%) also being grounds for frustration.

And with network providers raising tariff costs by a median of 81p[1] a month, Tesco Mobile estimates that in one year alone, UK consumers have spent around £217 million extra on their phone bills.

Simon Groves, Chief Marketing Officer of Tesco Mobile said:

“We believe it’s only fair to stick to the contract that we make with our customers, and see no reason to change the core tariff price that a customer has signed up to. We’ve never put our Pay-Monthly tariff prices up mid-contract and this Tariff Promise demonstrates our continued commitment to our customers. Being open and honest with them is incredibly important to us and we’re proud to be setting an example of best in class mobile service.”
For more information visit www.tescomobile.com


Notes to editors:
In some circumstances the prices for services that fall outside of the core monthly tariff, and are billed incrementally when these services are used by the customer, may need to be amended.
Examples include premium rate or non-geographic numbers, directory enquiries, making calls and sending texts internationally, using your phone aboard or VAT rate amendments. These services are provided by third parties, and changes to third party pricing out of Tesco Mobile’s control may need to be passed on.

*Research was conducted by Vision Critical on a sample of 1,000 consumers on behalf of Tesco Mobile, February 2013

About Tesco Mobile:
Tesco Mobile is a 50:50 joint venture between Tesco and O2. The company sells Tesco Mobile branded services exclusively in Tesco stores, online and through Tesco Direct, across the UK. The service gives Tesco Mobile customers value, simplicity and choice, offering them simple, great value tariffs with rewards such as free credit and Clubcard points.

Tesco Mobile has been awarded the Best Mobile Service Provider by Which? Consumer Group and selected as the number one mobile network for customer satisfaction for both Pay as you go and Pay Monthly by J.D Power and Associates Group in 2011.

Published on 21st August 2013