NTL services may start price war

Cable group NTL will introduce a bundled package of services - including telephony, Internet and cable services - tomorrow, to…

Cable group NTL will introduce a bundled package of services - including telephony, Internet and cable services - tomorrow, to try to win market share from firms such as Esat Telecom and Eircom. The move is expected to spark a price war as NTL's competitors in the telephony/voice market respond.

NTL, which bought Cablelink almost 18 months ago, will offer two types of package. The first will offer the three services - voice, Internet telephony - and a basic cable service - for £20 a month. It will include 24-hour free Internet access, but this will only be available to a few customers, because the cable system has not been upgraded.

The second package, at £15 a month, will include free Internet access all weekend, but a charge of 3.5p per minute at other times.

With the free Internet package, the customer will pay no line rental to Eircom because where the system has been upgraded to include fibre optic links, the customer can use NTL's national network.

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Where the system, has not upgraded, customers will still pay line rental to Eircom - it is expected to take up to three years to upgrade the system fully to become what is known as a two-way network.

NTL is expected to make much play of its national call charges which will cost the same as a call to the UK. These calls will cost 6p per minute during the day, 4p per minute at night and 3p per minute at weekends.