Tesco to take on BT and TalkTalk

Tesco is to relaunch its Home Phone service within the next month to compete harder against the likes of BT and Carphone Warehouse's TalkTalk.

The grocer is preparing to introduce new competitive tariffs. The Tesco Talk 2 package, offering free evening and weekend calls, will cost£4.47 a month - down from£4.99. Tesco will also introduce a new tariff for its fixed line pay-as-you-go service.

For calls to mobiles, Tesco claims it will be 5 per cent cheaper than BT.

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