Post Office Ltd enters mobile phone market with Pay As You Go service

Britain’s Post Office Ltd has entered the mobile phone market with the launch of its first Pay As You Go phone service. The state-owned company has launched a new Post Office Mobile brand after teaming up with telecommunications firm EE to use its mobile phone network.

The roll out for the new service starts in the North West, but Post Office Mobile will be available nationally and online.

Post Office said it was aiming the service at the UK’s 36 users of Pay As You Go mobile phone services, which comprises about 44% of the mobile market overall.

The company said its research suggested a third of Pay As You Go users consider changing providers every 18 months.

Post Office Mobile is promising calls up to 77% cheaper than some of its main rivals.

Service bundles will start at £5 for 250 minutes of calls, 3,000 texts and 500MB of data.

Martin George, the commercial director at Post Office Ltd, said it was a “natural step” for his company to expand into mobile phone services to build on the 11m top-up transactions that mobile phone users already purchase through UK post offices.

“Mobile will add to our 170+ essential services, which we already provide to our customers, including home phone and broadband,” he said.

“Many Pay as You Go customers are paying really high call charges and shouldn’t be. The Post Office Mobile service provides great value and simple prices all supported by our dedicated Post Office Mobile customer service team.”