The major mobile operators have reacted to yesterday's launch by cutting prices. T-Mobile and communications company TeleDanmark Communications launched a SIM card-only service with the introduction offer of 9p for calls to all UK networks at any time and only 3p for texts to all UK networks.
Carphone Warehouse is advertising mobile phone calls at half the EasyMobile tariff, claiming it will remain the price and service leader.
Supermarket giant Tesco said it was working on plans to launch a low-cost mobile service under its Value economy brand.
Virgin did not respond by cutting prices but hit back at the group over its plans to charge customers 拢5 if the account is blocked for going over a 拢10 overdrawn balance limit. Customers will also be charged a 75p fee a month if they do not spend 拢5 every three months.
Vodafone said that although it had no plans to launch a new low-cost tariff, it would consider launching a low-cost sub-brand to attract users on a budget.
EasyGroup says it believes UK customers will prefer a service that is simple to buy and manage. There are no plans for a big marketing push, with the company saying it will spend its time and money on providing customers with competitive tariffs and better customer support.
Frank Rasmussen, CEO of UK, said: "We have made it our mission to make a difference to customers that until now have been hunting for handset offers that has been wrapped into complex tariff plans and incomprehensible long-term contracts."
EasyGroup founder Stelios Haji-Ioannou said he believes other mobile companies will be "running scared", blaming this fear on Orange Personal Communication's recent decision to take EasyGroup to court over its use of the colour orange.
Haji-Ioannou said: "I have been using this colour for 10 year and I will not stop using it now for anyone. Let the battle commence."
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