In its place comes a selection of different packages which BT claims will make its offering cheaper than those offered by rivals.

So if you're currently on the standard BT rate you will automatically be moved to BT Together Option One.

Options

This option means you will pay �10.50 a month for your line rental, 5.5p per hour for calls made during weekends and evenings and 3p per minute during the daytime.

BT Consumer managing director Fergus Crockett said he did not think the move would start a price war, but would give a greater transparency to prices.

One reason for the move, he said, was the habit of his rivals who insisted on comparing their prices to BT's standard rate.

"This has been really annoying because our packaged offers are really competitive and this didn't come across because of the way they did their price comparisons," he said.

BT also offers two other options where you can pay more upfront each month - and enjoy cheaper or free calls.

Rivals

BT's rivals have hit back however.

Tele2 UK's chief executive Bill Butler said he believed BT was still behaving like a monopoly in believing it could "push customers around and confuse them".

And Ian El-Mokadem, managing director of Centrica Telecommunications said:

"This is an outrageous decision that affects 9 million customers in the UK by removing their choice to opt for the lowest monthly line rental charge and forcing them on to BT's Option 1 package.

"By our calculations that means 9 million BT customers on their standard plan will now be required to pay an extra �1 a month in line rental plus those that use it will lose their �2.15 call allowance a month."

Carphone Warehouse commented:

"Thank you BT. But it's too little and it's too late. Today, it's great you've confirmed your customers have been paying too much. But you're still more expensive than TalkTalk."

Working Lunch's own research found that BT's boast that an average 10 minute call will now cost the same as or less than many rivals is certainly true.

But when you compare shorter calls - such as two and a half minutes - then other rivals such as Tele2 charge less.