AOL taps into UK phone business

AOL today signalled its intention to go into the UK phone business with the launch of a home service offering unlimited calls for an introductory flat rate of £7.99 per month.

Dubbed AOL Talk, the offering will be available from 17 May for AOL Internet subscribers, and will be sold as a standalone product later this year.

The service will include unlimited UK local and national calls of any duration at any time for the introductory offer price.

The introductory flat rate, which is valid until 30 June 2005, applies for the first 12 months of an AOL Talk subscription, after which customers will pay the standard subscription fee of £9.99 per month.

Subscribers signing up after 30 June 2005 will pay this standard monthly subscription fee.

AOL claimed that the package also includes "competitive" mobile and international rates.

Karen Thomson, chief executive at AOL UK, said that the flat rate package would appeal to customers as it offers no hidden charges or limits on the time customers can spend calling UK landlines.

AOL Talk is based on Carrier Pre-Select, allowing customers with a BT landline to switch home phone providers without changing their phone number or line. The service is available on all BT landlines, and BT line rental fees continue to apply.