Tesco launches cheapest SIM-only phone deal

Move could spark off a price war

Tesco's SIM-only deal could be the UK's cheapest

Tesco Mobile has unveiled a new tariff that provides users with unlimited texts and 100 minutes of free talk time for £6 per month, believed to be the cheapest SIM-only deal in the industry.

Some experts believe this could see the beginning of a price war, with operators reducing fees to retain the traditionally younger SIM-only customers.

Since the deal is on a month-by-month basis, users could easily switch should a cheaper SIM-only deal surface from another mobile operator.

The charges applying after the 100 minutes have been used are a flat rate of 20p per minute for calls to landlines, and mobiles on any network.Access to voicemail costs 10p per minute and video calls on the same network are charged at 50p per minute.

SIM-only allows users to join a mobile operator’s network by changing the SIM card rather than the phone.