UK 4G price wars: Tesco’s new £2.50 per month 4G offer

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Tesco has taken everyone by surprise as it has started offering 4G services, effective immediately, by undercutting the EE pricing for as little as £2.50 per month.

Customers will be able to avail 4G service immediately as soon as they pay £2.50 no matter how old their contract is or what tariff they are on. Piggybacking on the O2 network, Tesco will be offering 4G services in all those regions where O2 has rolled out its 4G services including Birmingham, Bradford, Coventry, Leeds, Leicester, London, Nottingham and Sheffield.

Tesco is also offering SIM-only 4G tariff starting £10 a month. Users opting for this option will be getting 500MB of 4G data allowance per month, 5000 texts and 250 voice minutes. Tesco is also offering 24 month contracts wherein customers get a free Nokia Lumia 920 or a Samsung Galaxy Ace 3 with same data, text and voice call allowance as the £10 SIM-only tariff. Users have the option of removing the 4G plan as and when they want if they are not satisfied with the services.

Tesco Mobile 4G website has a list of handsets on offer along with different data, text and voice call allowances. Tesco is offering HTC One, Samsung Galaxy S4 Mini, and Samsung Galaxy S4 for free if users opt for a 24-month contract and ready to pay £30, £23 and £30 per month respectively.

O2 is planning to extend its 4G reach by end of 2013 by offering 4G services to its customers in five more cities including Newcastle, Glasgow, Liverpool, Manchester and Edinburgh. If that happens, Tesco Mobile customers in these cities will also be able to avail cheap 4G services.