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O2 has revamped its cheapest SIM only mobile phone deal to offer better value to customers looking to cut down on their monthly expenditure.

The enhanced entry-level Simplicity offers now entitle customers to 300 call minutes per month – up from 100 – when they sign up for a 12-month contract at £10 per month.

Subscribers also benefit from unlimited text messages and calls to O2 mobile phones.

The re-launched tariff is likely to appeal both to budget-conscious consumers as well as those who are happy with their existing handset and do not wish to switch to a newer model.

Meanwhile, O2 has also recently bolstered its handset line-up with the highly-rated Android powered Sony Ericsson Xperia X10 which is available for free from £30 per month when customers sign up for a 24-month contract.

The carrier’s range of new and forthcoming phones also includes the Samsung Jet Ultra and the HTC Desire.

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