Internet costs to fall

Households could see the cost of connecting to the internet fall after British Telecom was told to slash its prices.

The company has been accused of overcharging internet companies to use its phone lines. Firms such as Freeserve will now see their bills drop by 17 per cent following a ruling by the regulator, Oftel.

It is hoped it will then pass on these savings to their customers.

David Edmonds, director general of Oftel, said: "The action taken today ensures that BT continues to recoup the cost of providing wholesale unmetered internet access, and that UK consumers continue to benefit from one of the most competitive dial-up internet access markets in the world."

An investigation into the amount which BT charges for wholesale internet access was opened following a complaint from Cable & Wireless Plc.

Meanwhile, telephone users will have to hunt for the best deal when the directory enquiry number 192 is deregulated next month, consumer groups warn.

One in four phone users already shuns BT's 192 service in favour of 13 new directory enquiry firms and BT's new service, 118 500.

But consumers will now have to pick a different operator depending on the type of information they need.