Tesco enters VoIP with landline-like charges

A new IP telephony service launched by supermarket chain Tesco, aimed at the consumer market rather than businesses, is set to charge prices in a similar way to normal landline connections.

Price plans for the service allow unlimited UK-wide calls for £5 per month, while a month's worth of international calls cost £8.50.

While this system will be instantly recognisable to British householders who currently pay their bills by landline, there are other consumer options which require no such monthly payments for greatly reduced or even free calls worldwide.

However, Andy Dewhurst, chief executive officer of Tesco Telecoms, defended the new scheme, saying: "These new prices are a simple way for anyone with internet access to make really great value or free calls at any time".

"Consumers no longer need to worry about expensive call costs abroad or when they are calling home from international destinations. We really believe this will take the stress and guilt out of round-the-world calls."