The cost of some BT phone call packages will fall

The cost of two key phone package deals - BT Together options 2 and 3 - will be cut by almost a third from 1 August, the company announced.

In addition, a 25p monthly line rental discount will be offered to any of BT's 16 million customers who opt to receive bills online.

BT's price cut coincides with the ending of official price controls on its retail services.

But it was not all good news for BT customers, particularly those on option 1. The firm announced that it would start rounding up the cost of calls to the minute, many other phone providers charge by the second.

Controls lifted

BT PRICE CUTS BT Together Option 2 falls 28% to �3.95 per month BT Together Option 3 falls 31% to �9.95 per month 25p line rental discount offered to customers who receive bills online Cost of calling 0845 and 0870 numbers to fall from October Agreeing to stay with BT for 18 months will mean free weekend and evening calls for a year Note: Costs and discounts calculated separately from basic �11 monthly line rental

Charges for residential customers for line rental and calls have been controlled by the regulator since BT was privatised in 1984.

But telecoms regulator, Ofcom, announced that the controls would be lifted from 1 August.

At the time, BT said ending price controls was "good for customers".

BT said ending the controls would allow it to "simplify our pricing structures and make them more user-friendly".