Tesco to offer international phone cards

Retail giant Tesco is entering the international calling market by offering consumers its brand of low cost calling cards.

The announcement comes after a study

The announcement comes after a study by Simplifydigital says that UK phone consumers are paying millions of pounds in excess each year because they don't shop around for the best rates on overseas calls.

Recent research also shows that many households continue to waste money on international calls because they haven't updated their landline phone plan that may be unsuitable and costly.

Experts say in the coming months international calling will rise with the onset of the holidays and that on Christmas day alone up to 40% of UK households will make at least one overseas call.

Tesco Telecoms chief executive Lance Bachelor said that the product is a response to customers seeking a simple, honest product with good rates. He added that many prefer the no-strings-attached aspect of calling cards.

Mr Bachelor was likely referring to competitive products such as VoIP programs like Skype and Vonage as well as conventional overseas calling services from brands like Virgin Media and TalkTalk.