Electricals and white goods etailer AO.com has unveiled a mobile phones business designed to “shake up the market”.

AO aims to take on incumbents such as Dixons Carphone and believes its ‘no stores’ business model will enable it to offer shoppers better value.

The new online store, ao-mobile.com, offers a large choice from the four UK mobile networks and all handset manufacturers. Contract, SIM-only and handset-only deals are all available.

It is the latest initiative since AO founder John Roberts returned to lead the etailer in January.

Roberts said: “This is a gamechanger for customers because we’ve built AO Mobile for today’s world.

“Customers tell us that they find buying mobile and connectivity complicated. From today, we’re making it easy to choose what’s best for them with easy-to-understand pricing and fantastic service.

“We can make it cheaper because AO Mobile customers don’t have to pay for hundreds of high street stores with thousands of sales staff.”

AO sees opportunity in a market where customer needs are not properly met. The etailer cited the 2019 UK Customer Satisfaction Index, which ranks the top 50 organisations for customer service, and included only two telecoms providers.

Roberts maintained that AO’s “value, simplicity and service will make AO Mobile a natural choice for today’s mobile customer”.

He said: “When it comes to telecoms, buying a mobile is a minefield of confusion and pretty average service. Customers deserve better and that’s where AO Mobile comes in.”

The launch comes after AO bought Mobile Phones Direct in December.