Sainsbury's has teamed up with Vodafone to launch its own Mobile by Sainsbury's service to compete against the likes of Tesco Mobile.

The service, which will piggy back on the Vodafone network, will launch 'later this summer', said Sainsbury's, and will provide its users with retail offers and Nectar Points.

Luke Jensen, Sainsbury's group development director said: "Mobile by Sainsbury's feels like a natural extension of our brand as well as a great way to reward our customers."

Full phone ranges and tariffs will be announced at full launch later this summer.

In the past year, Sainsbury's has launched eBooks by Sainsbury's, mp3 downloads and most recently its video on demand service.

Sainsbury's announced in May it would be buying out the 50 percent of the Sainsbury's Bank joint venture with Lloyds Banking Group that it doesn't already own.