Supermarket group Tesco has announced plans to launch an internet telephone service in the UK.

The service, which uses voice over internet protocol (VoIP) technology, will allow users to make unlimited free phone calls over the internet.

Tesco, the UK's largest supermarket chain, has teamed up with Australian-based internet phone company Freshtel to launch the service.

"Consumers have not yet caught on to internet calling but this is now set to change," said Andy Dewhurst, chief executive of Tesco Telecoms.

"What they have been looking for is a service that is simple, easy to use, convenient and great value."

Tesco said they would launch the service in fifteen stores later this week.

The service will be rolled out in the remaining shops over the next two months, Tesco added.

Dixons, British Telecom and Skype already offer an internet telephone service using VoIP.

Last year, US-based Sykpe was bought by online auction giant eBay for $2.6bn.