UK MVNO Tesco Mobile has launched a sponsored data offering that it said will reduce subscribers’ monthly bills.

The supermarket chain’s Xtras service comes in the form of an Android app that pay monthly customers download onto their mobile devices.

The app features geo-targeted ads, offers, discounts and content from brands such as British Airways, McDonalds, Doritos and Branston.

These are shown “at various times” once customers unlock their phone.

Tesco Mobile has teamed up with mobile tech business Unlockd, which has worked with Lebara in Australia and Sprint in the US on similar offerings.

Australia-based Unlockd is bringing Facebook and News UK into the Tesco app.

Facebook ads will be delivered via its Audience Network platform, while News UK will provide the advertising inventory on an exclusive basis and deliver stories from The Sun.

Tesco Mobile said relevant subscribers would get £3 off their monthly bill.

The MVNO's CEO Anthony Vollmer said: “We’re committed to offering customers great value, simplicity and choice with exceptional rewards.

“Tesco Mobile Xtras, powered by Unlockd’s unique platform, provides our customers with even more choice and value.

“The opportunity for our customers to save money on their phone bill in exchange for learning about products and services relevant to them is a first in the UK market and we’re excited to exclusively offer this value to our customers.”

Matt Berriman, CEO and Co-Founder of Unlockd, added: “It is a move that will address existing challenges faced by our partners’ businesses and positively transform both the mobile advertising landscape and telco industry.”

David Dinsmore, Chief Operating Officer at News UK, and Sara Dunham, Head of Marketing, Retail and Direct at British Airways, both said they were excited to try a new way of reaching new customers.

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