The new 'capped tariff' by 'Tesco Mobile' will help the parents to cap the monthly expenses on mobile contract with the choice of topping up if at all necessary. The facility will be available on all Tesco Mobile phones and tariffs inclusive of 'iPhone 4S'.

The price plan was introduced after the realization that about 33% of the youth believe that their monthly phone bill will not go beyond GBP 10. But 40% of the parents said that they are paying not less than GBP 60 every month for the telephone bill of the child.

The capped tariff will teach the children something about financial management. That will increase their responsibility. They will learn to manage money. The parent will also have control over the expenditure within the family.

Donna Dawson, the well known psychologist specialized in personality and behaviour of youth said that a capped contract determines an initial financial limitation. It enables youngsters to know their duties and responsibilities. It also enables the parents to extend the limit if required.

About 3000 parents and 1000 youth of the UK participated in a test conducted recently by Redshift Research and Marketing Services Omnibus. Some of the findings were that the children used to get the mobile phone even before attaining the age of 10. The call charges amounted to GBP 28.80 per month on an average. It means the parents have to spend as much as GBP 8,000 by the time the child completes the university education.

According to Mobile, Sainsbury is planning to have its own Mobile Virtual Network Operator (MVNO).

Asda started its MVNO with Vodafone as early as in 2007, and recently introduced a pay-as-you-go scheme by which the users have to pay GBP 5 for 100 texts and 100 minutes of conversation.