Tesco to launch home telecom offer
Link-up with Cable & Wireless for fixed-line services
January 27 2003
Tesco is to enter the UK telecom market this summer with an offer that aims to cut prices on fixed line residential services.
The supermarket operator has confirmed a deal with Cable & Wireless, Servista, and Vertex Customer Management to launch the service, called Tesco Telecom, which promises supermarket-style offers for domestic phone calls.
The service will use Cable & Wireless Carrier Pre-Selection technology that abolishes the need for callers to use PIN codes and prefixes, or install special boxes in order to use a new telecom service. Tesco is also promising that there will be no lock-in contracts for the service. With Cable & Wireless as the primary telecoms supplier, Servista will provide billing support and Vertex the customer support service.
The move expands Tesco’s retail services offer which already includes the Tesco.com online grocery business and Tesco Personal Finance.
Tesco chief executive Sir Terry Leahy said: “Customers tell us they want a more convenient way to lower their phone bills. Because we think like retailers, not like a utility company, we will give customers supermarket-style offers; and a simple alternative to the lock-in contracts and complex billing systems that they hate.
“Building a new Telecoms business is the latest stage of our strategy to develop popular new retail services with expert partners, to give customers great value.”
Last week, Carphone Warehouse announced its own plans to launch a fixed line residential telephone service.
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