Prepay MVNO Asda Mobile has slashed its voice and text prices to the lowest rate in the UK.
From September 1, Asda Mobile calls will be 8p per minute and texts will 4p a text at anytime, to any network.
Previously, Asda Mobile charged prepay 16p per minute for the first three minutes and 8p per minute for talktime after that. Text prices come down from 10p per text for the first three text messages and 5p per text for the rest.
Asda said its new pricing makes it 80 percent cheaper than Virgin Mobile, which charges 40p a minute and 12p a text for cross-network traffic.
It also claimed Ofcom research found the average spend on mobile is £17.59 a month, which implies a saving of 25 per cent, or £53 per year, for average prepay usage on Asda Mobile.
Asda trading director Darren Blackhurst said: "We are giving customers the UK’s cheapest mobile call plan that’s simple to understand and a tariff with no hidden extras".
Asda Mobile SIM cards are free when bought with a £5 top up.