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Virgin Mobile has launched a new tariff priced just £8.32 per month, which undercuts 3’s £9 per month offer to become the cheapest on the market.

The launch of the deal is the latest shot fired in the war between the two network providers as they compete to offer the lowest priced monthly contract.

Under the terms of the deal, Virgin customers are on an 18 month contract and are entitled to 100 minutes of calls to any network at any time.

They also benefit from 100 free texts, free voicemail and itemised bills. The price of the deal will however rise to £8.50 when the government VAT cut becomes exempt.

Four phones are currently available on the plan, which are the LG KC550, the Nokia 3120 and two colour variants of the Samsung G600.

Graeme Oxby, managing director of Virgin, said: “In these financially challenging times where customers are tightening their purse-strings, our market leading £8.50 monthly package will allow people to stay in touch without the added worry of a hefty phone bill.”

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