Telecom operator, O2 has announced the launch of a new location-based service for its customers called Priority Moments.

O2 claims that Priority Moments will allow users to save up to £105 per month. The service will use GPS to fund where customers are and offer them tailored offers. Initially the service will offer more than 40 individual offers from 30 brands for customers to use in 3500 outlets across the UK.

The offers will be delivered based on location and they will simply have to show they screen of their device to redeem these offers in retail outlets. The service will offer attractive vouchers, deals and discounts.

O2 Marketing and Consumer Director, Sally Cowdry said: "You will consistently find offers and experiences from O2 and these companies over a long period of time. The combination of mobile, great offers and experiences by trusted companies with long term partnerships creates what we believe is a special service.”

Priority Moments is available as a free app to download for iPhone and Android smartphones. O2 subscribers using a WAP-enabled device will also be able to access the service through a mobile website.