Mobile operator 3 has shaken up the pay-as-you-go phone market by slashing the cost of making calls and downloading data.
Customers pre-loading their PAYG mobile accounts will pay just 3p to make voice calls, down from 26p; text charges fall from 11p each to 2p; while the cost of downloading a MB of data will fall to just 1p from 65p.
The company said it has made the move, which is set to cause a stir among other mobile providers, as part of a "back to basics" policy.
Until now 3 customers had to renew price plans every 30 days to get the best PAYG prices, particularly for data downloads.
Users on the 30-day plans currently lose any unused minutes and texts at the start of each month, but 3 said credit on the new pricing structure will last "until the last penny is spent".
Thomas Malleschitz, marketing director at 3, said the number of PAYG tariffs, add-ons and options was "mindboggling", with consumers usually forced to choose between good value calls, texts or internet.
He said: "It's important to us that our pay-as-you-go customers can use our Ultrafast network to chat, text and enjoy the internet without making a trade-off on value. This is pay-as-you-go in its purest form."
Existing 3 PAYG customers will also get the new rates without having to change their tariff.
Ernest Doku, telecoms expert at uSwitch.com, said the plan offered "great value" and was "perfect for an emergency phone as the credit doesn't expire".
He said £10 of credit on the tariff would be enough for 100 mins, 200 texts and 500MB, which could be beaten by bundled sim-only deals from giffgaff or Orange, however these had higher charges if you exceeded your allowance.
"Consumers don't have to predict how they will use their phone and buy a deal to suit," Doku said. "Those who underestimate how much they will use their phone won't be paying through the nose when they need more. Data-hungry consumers will be the real winners, with a MB costing just 1p on 3 – extra data on other PAYG plans can cost as much as 65p."
