Asda cuts PAYG tariff

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Asda cuts PAYG tariff

Supermarket Asda has released a new flat rate tariff for its pay-as-you-go (PAYG) mobile phone service.

The provider claims that the new rate, which cuts calls from 8p to 4p a minute, will save 45 million users £2.38 billion a year.

Darren Blackhurst, Asda's trading director, said the tariff was "simple to understand" and had "no hidden extras".

Customers are charged the same rate no matter what time of day they call.

They can also call any mobile network or landline without having hidden charges.

A study by Ofcom earlier this month found that UK consumers are paying less for their communications services, but getting more out of them.

The broadcasting watchdog cited three main reasons as to the drop in prices of such services.

These were discounts in bundle deals, whereby consumers pay one fee for multiple services, lower broadband prices and an increasing proportion of people switching providers to secure the best deal.

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