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Monday, 31 July 2006, 12:59 GMT 13:59 UK

BT cuts phone call package costs

Phone fixed BT has cut the price of some of its main residential phone call deals.

The cost of two key phone package deals - BT Together options 2 and 3 - will be cut by almost a third from 1 August, the company announced.

In addition, a 25p monthly line rental discount will be offered to any of BT's 16 million customers who opt to receive bills online.

BT's price cut coincides with the ending of official price controls on its retail services.

But it was not all good news for BT customers, particularly those on option 1. The firm announced that it would start rounding up the cost of calls to the minute, many other phone providers charge by the second.

Controls lifted

BT PRICE CUTS

Note: Costs and discounts calculated separately from basic £11 monthly line rental

Charges for residential customers for line rental and calls have been controlled by the regulator since BT was privatised in 1984.

But telecoms regulator, Ofcom, announced that the controls would be lifted from 1 August.

At the time, BT said ending price controls was "good for customers".

BT said ending the controls would allow it to "simplify our pricing structures and make them more user-friendly".




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Related to this story:
BSkyB joins 'free broadband' war (18 Jul 06 |  Business )
BT steps up home broadband battle (20 Jun 06 |  Business )
Phone firm launches net price war (11 Apr 06 |  Business )
NTL and BT users 'dissatisfied' (19 May 06 |  Business )
Broadband boost helps BT results (18 May 06 |  Business )

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