Newtel has won a cut-price deal with France Telecom

Newtel has teamed up with France's second largest telecommunications firm, France Telecom.

The firm says it will be able to cut costs through use of an optical fibre link to Normandy.

The changes are due to start in Jersey in July and by the end of the year in Guernsey.

The most important thing is that we shall be offering the consumer choice Newtel chairman, Peter Funk

Newtel chairman, Peter Funk, said: "We will be able to offer a service which will lower national and international voice calls.

"We will be able to give you less expensive access to the internet.

"But the most important thing is that we shall be offering the consumer choice."

The arrival of Newtel follows deregulation of telecommunications.

Newtel Guernsey Limited was awarded a licence to compete with Cable and Wireless last November.

Newtel was the first company to compete against Jersey Telecoms in the island's phone call market.

Following public consultation, its licence to provide phone services started at the beginning of this year.