BT finally caves in to demands for free off-peak calls

NEWS The telco has finally confirmed rumours that it plans to scrap most of its existing consumer calling rates and offer four basic packages, which will include a combination of free calls and internet access. The new tarrifs will come into effect from 1 December. Angus Porter, managing director of BT's consumer division, said that he recognised consumer concerns over call charges and is confident they will consider the deal best value for money.
Tony Lavender, principal consultant at Ovum, agreed that the deal is good value for heavy users. "It's a radical step for BT, the first time it has offered an integrated package," he said. "It recognises that unmetered access is here to stay and use of the phone is related to use of the internet." The packages include BT Talk Together, priced at £14.99, which will offer consumers free local calls in the evening and at weekends with discounts for both national and international calls. However, any call that exceeds one-hour will be charged at 1p per minute. It will also offer BT Talk & Surf Together at £17.99 a month, which will combine unlimited off-peak phone calls and internet access, which ISPs will also be able to sign up for. A spokeswoman for cable company NTL said it isn't concerned by the deal and does not expect to revise its own pricing structure. "We already offer unmetered internet access and free local cable to cable calls for £9.25 monthly line rental," she said. The two new packages will be offered along with the existing BT Together for £11.99 and BT Surf Together for £14.99. However, the news was not enough to reverse a long-term slide in BT's share price, which fell by almost two percent to 677.5p at 17:00 on Thursday 19 October.