Small businesses frustrated with 'over-priced' telephone systems will soon be able to find cheaper and simpler to run alternatives, according to a telephony startup.

Buckinghamshire-based Simple Telephony claims to have "blown the whistle" on expensive options from companies such as BT, and is looking for investors and channel partners to sell its PC-based telephone system.

Company founder Steven McAdam told vnunet.com that the market for companies with up to 10 employees was not catered for by cash-chasing telcos.

"We've created a low cost PC peripheral system that will act as an affordable, easily installed and managed, plug and go system," he said.

The products integrate a telephone system with voice mail onto a PCI card, and can support up to 10 lines and 24 extensions with voicemail and auto-attendant options.

The system, which McAdam claimed would cut entry prices by up to 75 per cent, will be available in May.