Oftel price comparison service to promote competition

Oftel has launched a new service, www.phonebills.org.uk, to help UK consumers find the cheapest telephone deal in their area.

The service will help consumers confused by the mass of sales literature choose the best deal for them, claims Oftel. It will also encourage competition between the opearators.

Developed with telecom companies BT, Cable & Wireless, Eurobell, NTL and Telewest and pricing consultant Analysys, the service could encourage phone users to leave their existing supplier. Consumers will have to answer a series of questions about the types of calls they make and the frequency they make them. By entering their postcode to determine which operators supply a telephone service in that area, consumers can see a comparison price guide for those operators.

David Edmonds, director general of Telecommunications, said: "This initiative is a positive step forward for the industry and for consumers. It's the first time the industry has co-operated to provide comparable information on prices."

Oftel said it will be encouraging other operators to provide information for the service, and that it "expects other companies to join next year now that the system is in place."

The watchdog also revealed that it would expand the Internet service to include a call centre to be opened once the fine details are completed. A spokesman for Oftel said: "The call centre may well be open in the next week or so - it's just a case of crossing the t's and dotting the i's."