Known as AOL Talk, the service launches for AOL's 2.3m UK subscribers on May 17 and will be available as a standalone product later this year. It offers unlimited calls in the UK as well as what the company describes as competitive mobile and international rates.
It is further competition in the home phone market for BT. AOL Talk will be available to anyone with a BT landline, allowing them to switch phone company without changing the line or number. BT line rental fees will continue to apply.
Karen Thomson, chief executive of AOL UK, said: "AOL Talk's unlimited price plan gives people complete flexibility, as savings are not just limited to evenings and weekends, together with the reassurance that there are no hidden charges or limits on the time they can spend calling friends and family on UK landlines."
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