UK internet telephony market heating up

18 April 2005

Britain's emerging internet telephony market is rapidly accelerating into the forefront of consumer attention after suppliers recently triggered the start of a potential price war as large savings were offered to undercut the competition.

And ZDNet UK reports that voice-over-IP (VoIP) service suppliers COLT Telecom and Cable & Wireless have become the latest companies to deploy such tactics.

Colt has introduced a flat-rate VoIP service, COLT IP Voice, which for a standard fee of £17 per user per month includes calls to all major European countries, excluding to mobile phones.

Cable & Wireless launched a revamped offering of its own, Intelligent Voice, which also looks set to offer greatly reduced call rates.

Richard Baker, head of voice at Cable & Wireless, suggested a 25 per cent saving was typical and insisted that the potential of VoIP is huge.

"The VoIP market is very interesting, with 16 million deployments worldwide. For Cable & Wireless, we have very aggressive plans for business customers in the UK," said Baker.

"We have a clear mandate to win customers, and we're looking to take market share from BT."

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