The Post OFfice is to re-enter the telecoms market twenty years after the Post Office originally cut the line from BT.
Consignia, the company which runs the Post Office, will use Post Office branding and outlets. Consignia will launch the pre-pay domestic fixed-line service next week.
Consignia, which has been hit by a slump in profits caused by the widespread intoduction of email and private postal companies, is rolling out the plan to broaden the ways it makes money.
Initially the plan is to have a pay as you go service using leased lines from BT and Kingston Communications. Customers will be able to register for the service at the 18,000 Post Office counters, over the phone or online.
Customers will pay into a Pay As You Go account at their Post Office, and access it by adding a prefix number to their existing telephone lines.
""Our research indicates that people want to save on their phone calls at any time of the day or night and only want to pay for the time they spend on a call," said David Cromwell, commercial partnerships director at the Post Office.
The partnership will also give Tele2 a platform to enter the UK market and both have indicated that a mobile phone service will follow the fixed-line one, although no date has been set for this.
As well as looking at new revenue streams, Consignia announced a £1bn cost-cutting project earlier this year that will see its IT division outsourced in a £328m a year contract.
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