Tesco scraps internet telephony service

Tesco is to bring down the shutters on its internet telephony (VoIP) service at the end of the month.

Customers only have until 27 April in which to keep their number if they switch services to another VoIP (voice over internet protocol) provider. The retailer started offering Tesco Internet Phone and Talk Wi-Fi in 2006.

The phone originally sold for £20 with £5 of free airtime. People signing up for the service could choose their own VoIP number and have free phone calls to other people using the service.

Tesco said it was working closely with Ofcom and “other parties” to find the simplest way people could do this.

“Porting a VoIP number can be a complicated process so we are working hard to find out the best way for our customers,” a Tesco representative said.

However, it is not known if the Tesco handset will work with other VoIP services.

The retailer said it decided to pull the plug on the service because of a lack of interest from Tesco customers.

“Technology has moved on and the service wasn’t proving popular with Tesco customers. It was decided that the service was not sustainable,” Tesco told us.

However, other VoIP providers seem more than happy to woo Tesco customers to their services. Cloud Net is offering them access to its Cloud Net Connect service for a fixed fee from £8.50 a month.

The company said it would also provide a free IP handset and offer unlimited, free phone calls to other Cloud Net users. Calls to landlines cost 0.9p per minute and 9.0p per minute to mobiles.

Tesco is giving refunds for outstanding credit and for the cost of a phone it bought within the last three months.