Cheaper phone calls 'on the way'

Cheaper phone calls could be on the way

The cost of landline telephone calls could fall by up to £400m over the next four years, thanks to price changes being put in place by regulator Ofcom.

From 1 October, Ofcom is introducing new limits to the price BT charges to carry calls and dial-up internet between the UK's telephone exchanges.

Ofcom says that together with effective competition in the sector, the price savings could take place by 2008.

It hopes that telephone providers will pass the savings onto consumers.

The price reductions - which could be between £350m and £400m - should be enjoyed by both homes and businesses, it added.

Ofcom said the change recognised the continuing growth of competition in the landline telephone marketplace.