Tesco has pulled the plug on its in-store landlines following a £100m deal with Cable & Wireless that will see staff using mobile phones for all company calls.

Under the terms of the five-year deal, a private network will be created for Tesco users, banishing desk phones for office staff. The arrangement begins next month and will cover around 40,000 Tesco staff.

Cable & Wireless will be handed control of all the supermarket giant’s telecoms systems in 14 countries, beginning with its 1,500 UK stores and distribution centres.

Tesco infrastructure and operations IT director Nick Folkes told The Times he expected the deal to result in significant cost savings but also hoped new ways of using the network could be found, such as international video-conferencing between offices and in-store information kiosks for shoppers.