Ofcom clears BT to offer discount package deals

The last major rules controlling how much BT can charge for domestic phone calls were scrapped today - 25 years after the company was privatised.

Regulator Ofcom said BT now faces such effective competition from the likes of Virgin Media, BSkyB and TalkTalk that it will remove the chains which stopped BT offering bundled packages.

This means that shortly, like its rivals, BT will offer discounted packages for people who take more than one of its services such as landline, broadband and digital TV.

Ofcom said the trigger to deregulate BT came as more than 13 million households and small business have now moved to rival providers for phone lines. BT has 20 million such customers.

That competition has forced prices down said Ofcom, with the average monthly landline bill reduced from £25.04 in 2003 to £21.57 last year.

BT chief executive of retail Gavin Patterson said: "This is good news for consumers and businesses as it will allow us to offer more targeted discounts on products and services and more attractive bundles at better prices, something we have been unable to offer widely to date."