BT offers unmetered voice and net calls

BT has confirmed plans to offer free voice and internet phone calls in return for an increased monthly line rental, from December.

At a press conference today, the telco outlined four packages that include unmetered local voice and internet call options. BT has not yet had the plans approved by UK telecoms regulator Oftel, but called the conference after details leaked on to the internet.

Angus Porter, managing director of BT's consumer division, said BT is not copying the US free call model, something it has always insisted is impossible in the UK. "We're not talking about a US-style deal. There is still no such thing as free local call - people are paying a monthly fee," he said.

BT will offer four packages for consumers from 1 December. Advertising will start next month.

• BT Together - a variation on the existing package will cost £11.99 per month including line rental, but now with call allowance increased by 40p per month.
• BT Talk Together - £14.99 including line rental. Customers won't have to pay for local phone calls at evenings and weekends for the first hour of each voice call. They pay 1p per minute thereafter.
• BT Surf Together - £14.99 including line rental with inclusive evening and weekend internet calls with participating ISPs.
• BT Talk & Surf Together - £17.99 per month including line rental, unlimited off-peak local phone calls (first hour, the 1p per minute) and unmetered internet calls through participating Surftime ISPs.

BT has not had this approved by Oftel and will have to prove that it can bill accurately and maintain fair competition. "We don't want to put Oftel in a corner, but I am very confident that we have good answers to Oftel's questions," said Porter.

An Oftel spokeswoman said: "We're not making a decision yet. We have got the informal details and will look at BT's proposals. We'll need to ensure that BT meets all its licence requirements, which include price control and meeting competition regulations."